Canceling Subscriptions Saves Thousands

One of the biggest reasons businesses hire a professional bookkeeper is to optimize financial health and performance.  At R&D Legal Bookkeeping, we tend to find consistent mistakes that businesses have been making for years that have cost them thousands of dollars (and more).  One of those common mistakes to avoid?  Cancelling subscriptions.  A regular audit of one’s books can help identify subscriptions and pin-point reoccurring charges.

Over time, businesses often accumulate multiple subscriptions—such as software licenses, cloud services, industry memberships, or digital tools—that may no longer be necessary or underutilized.  With the speed of technology, often times software becomes obsolete or some subscriptions may be consolidated. These recurring expenses can add up significantly, reducing overall profitability.

By regularly auditing subscriptions and memberships, businesses can optimize their expenses, ensuring they only pay for what truly benefits their operations.

How to effectively review and manage subscriptions:

1. Create a comprehensive list: Gather all current subscriptions, memberships, and recurring payments across departments or teams. This includes software tools, cloud storage, marketing platforms, industry associations, and more.
2. Assess usage: Determine how frequently each service is used, whether it’s essential to daily operations, and if it provides sufficient value. For example, if a software license is rarely used or a membership is not providing significant benefits, it might be a candidate for cancellation.
3. Identify overlaps: Check for duplicate services or tools that serve similar functions. Eliminating redundancies can lead to cost savings.
4. Negotiate or downgrade plans: For subscriptions that are still valuable but expensive, consider negotiating better rates or switching to more affordable plans or tier options.
5. Set renewal reminders: Keep track of renewal dates to evaluate whether to continue, modify, or cancel before automatic payments are processed.
6. Implement a centralized management system: Use tools or spreadsheets to monitor all subscriptions and their costs, making it easier to review periodically.
7. Communicate with team members: Ensure stakeholders are aware of the purpose and usage of subscriptions, encouraging responsible use.

Here are some common examples of subscriptions that people and businesses can consider canceling to save money:

1. Streaming services: Netflix, Hulu, Disney+, or other entertainment subscriptions.
2. Cloud storage: Extra storage plans on Dropbox, Google Drive, or OneDrive if not fully utilized.
3. Software licenses: Unused or redundant subscriptions for tools like Adobe Creative Cloud, Microsoft Office, or niche industry software.
4. Online learning platforms: Subscriptions to Udemy, LinkedIn Learning, or Coursera if not actively used.
5. Email marketing tools: Mailchimp, Constant Contact, or similar services that are no longer needed.
6. VPN or security services: VPNs or antivirus subscriptions that are redundant or unnecessary.
7. Memberships and Industry Subscriptions
8. Professional associations: Industry memberships or networking groups that are no longer relevant.
9. Gym memberships: If not regularly attended, these can be canceled or paused.
10. Magazine or publication subscriptions: Physical or digital magazines that are not read regularly.
11. E-commerce and Shopping
12. Subscription boxes: Monthly product boxes (beauty, snacks, clothing) that are no longer appealing.
13. Auto-renewing product subscriptions: Regularly purchased consumables like vitamins, pet supplies, or household items.
14. Meal kit deliveries: Subscriptions to meal prep services if not frequently used.
15. Digital magazines or newspapers: Subscriptions to online news outlets or magazines.

How to decide what to cancel:

1. Review usage frequency.
2. Consider if the service is still relevant to your needs.
3. Look for cheaper alternatives or one-time purchases instead of ongoing subscriptions.
4. Regularly auditing these subscriptions ensures you’re not paying for services or memberships that no longer serve your needs.

Benefits of reviewing subscriptions:

1. Cost savings: Eliminating unused or unnecessary subscriptions reduces expenses.
2. Increased efficiency: Focus resources on tools and memberships that add real value.
3. Better budget management: Clear understanding of recurring costs helps in accurate financial planning.
4. Avoiding waste: Prevents ongoing payments for services that no longer serve the business.

The amount people can save each year by canceling unnecessary subscriptions varies widely depending on the number and types of subscriptions they have. On average, many individuals and small businesses spend hundreds to thousands of dollars annually on subscriptions they no longer use or need. Small businesses with multiple subscriptions could save several thousand dollars annually—sometimes between $1,000 and $10,000—by trimming redundant or unnecessary services.

Are you looking for some help on your books? R&D Legal Bookkeeping Services services Hilton Head Island, Bluffton, Ridgeland, Charleston, the SC Lowcountry and beyond for professional bookeeping services. We allow you to focus on what you do best — your business – and leave the calculations and nitty gritty of payroll, bookeeping, and accounting to us. See why dozens of attorneys, property management companies, and contractors trust us with their payroll and professional bookkeeping by hiring us! Call us today to learn more.