How to Reduce Business Software Costs
Updated: Oct 12
Software subscriptions have a way of quietly piling up.
You start with a CRM. Then you add payroll software, an e-signature platform, a meeting tool, team communication software, project management, analytics, and a dozen other subscriptions.
Individually, each expense might seem reasonable.
Together, they can become a significant monthly operating cost.
The easiest way to reduce business software costs is to regularly audit your subscriptions, eliminate overlapping tools, and compare expensive platforms with simpler alternatives that provide the features you actually use.
Here are several places to start.
Is There a Cheaper Alternative to DocuSign?
If you only need basic electronic signatures, you may not need all of the functionality included with a more comprehensive e-signature platform.
DocuSign is one of the most recognizable names in electronic signatures, but businesses should evaluate how much of the platform they're actually using.
If your primary need is sending relatively straightforward documents for signature, compare other e-signature platforms based on:
Number of documents you send
Number of users
Templates
Audit trails
Integrations
Security requirements
Document storage
Required compliance features
Another place to explore is AppSumo, which regularly features newer software products offering promotional or lifetime pricing.
Lifetime deals can sometimes reduce long-term costs substantially, but make sure the product is reliable enough for an important business function before moving critical workflows onto it.
Do You Need HubSpot for Your CRM?
HubSpot offers far more than basic contact management, so businesses using only a small portion of its functionality should compare the cost with simpler CRM and sales tools.
Before paying for a larger CRM platform, determine what your team actually needs.
Do you need:
Contact management?
Email sequences?
Sales pipelines?
Lead tracking?
Marketing automation?
Reporting?
Customer service tools?
If your primary use case is prospecting and sales outreach, Apollo may be worth evaluating alongside HubSpot.
The important question isn't which CRM has the most features.
It's which platform has the features your team will actually use.
Paying for sophisticated functionality that nobody touches doesn't create additional value.
Do You Need to Pay for Zoom?
Before paying for standalone video-conferencing software, check whether meeting functionality is already included in another platform your company uses.
Zoom is a popular option for virtual meetings, but it isn't the only one.
Businesses already using Google's productivity tools, for example, may have access to Google Meet as part of their existing setup.
Dialpad may also be worth considering for businesses looking for communication functionality beyond basic video meetings.
The broader lesson applies to more than meeting software:
Before purchasing another subscription, check whether one of your existing tools already provides the functionality you need.
Duplicate software is one of the easiest expenses to eliminate.
Should You Use Gusto or QuickBooks for Payroll?
The right payroll platform depends on your existing accounting system, number of employees, HR needs, and required integrations.
Gusto is designed around payroll, benefits, and HR functionality for businesses.
But companies already using QuickBooks for accounting may also want to evaluate its payroll options.
Don't compare the subscription prices alone.
Consider how much administrative work each option creates.
Paying slightly more for software that integrates directly into your existing financial workflow may ultimately be more efficient than maintaining separate systems.
Evaluate:
Payroll functionality
Accounting integrations
Benefits administration
Tax features
Employee onboarding
Reporting
Customer support
Total cost as your team grows
The cheapest subscription isn't always the least expensive solution to operate.
Do Small Businesses Need to Pay for Slack?
Small teams may be able to use Slack without immediately upgrading to a paid plan, depending on the functionality and message history they require.
Slack can be useful for organizing communication across remote and distributed teams.
Before upgrading, determine which paid features your team actually needs.
This same rule should apply whenever a software company prompts you to upgrade:
Which specific limitation are we paying to remove?
If nobody on the team can clearly answer that question, you may not need the upgrade yet.
Is Stripe Worth the Payment Processing Cost?
Payment processors should be compared on more than the headline transaction fee.
Stripe and Square both provide businesses with payment-processing capabilities, but the right platform depends on how and where you accept payments.
When comparing payment processors, consider:
Transaction fees
Online versus in-person payments
International transactions
Subscription billing
Chargebacks
Integrations
Reporting
Developer tools
Customer support
Negotiated pricing at higher volumes
A small difference in transaction fees can become meaningful at scale.
But switching to a cheaper processor may not make sense if it creates additional operational problems or lacks functionality your business depends on.
Are Lifetime Software Deals Worth It?
Lifetime software deals can save businesses money, but they're most useful for non-critical tools where switching later wouldn't severely disrupt operations.
Marketplaces such as AppSumo frequently feature software products offering one-time purchase options instead of recurring subscriptions.
That can be an attractive alternative to adding another monthly SaaS expense.
However, lifetime access doesn't guarantee that a company or product will exist forever.
Before purchasing, consider:
How established is the software company?
Is the product actively maintained?
Does it have the integrations you need?
Can you export your data?
What happens if the company shuts down?
Is the software handling sensitive business or customer information?
A lifetime deal for a simple productivity tool presents very different risks from moving your payroll, customer database, or other critical systems onto an unproven platform.
How Can You Reduce Your Company's SaaS Spending?
The best way to control software spending is to regularly audit every subscription your business pays for.
Create a list of your software and ask:
Who actually uses this?
How frequently is it used?
What problem does it solve?
Do we already have another tool that does the same thing?
Are we paying for features we don't use?
Could we downgrade our plan?
Is there a simpler alternative?
Would switching create more work than the savings justify?
You may be surprised by how many subscriptions nobody can explain.
The goal isn't to replace every premium platform with the cheapest alternative.
It's to make sure every recurring software expense is earning its place in your business.
Where Else Can Businesses Reduce Operating Costs?
Software is only one part of a company's operating expenses.
The same principle can be applied across the business: understand what you're paying for, determine what you actually need, and look for more efficient ways to accomplish the same outcome.
That can include reviewing vendors, eliminating unnecessary subscriptions, automating repetitive processes, and reconsidering how certain positions are staffed.
Digital Executive helps U.S. businesses explore another area of operating efficiency by connecting them with skilled remote professionals in Latin America.
The objective shouldn't simply be to find the cheapest possible option—whether you're buying software or hiring people.
The objective is to spend intentionally on the resources that provide the most value to your business.
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