The Hidden Cost of Recurring Subscriptions in Your Business 

Recurring subscriptions have become a hidden drain on many businesses, not just a minor expense. As companies adopt more subscription-based tools, costs can quickly spiral out of control.  

Ask yourself which subscriptions are essential? Are we paying for overlapping or unused services? And how can we optimize recurring expenses without disrupting operations? 

Ace Cloud Hosting spoke with Randy Johnston, CEO and Co-Founder of NMGI (Network Management Group, Inc.), and Seth Fineberg, an accounting industry consultant, content strategist, and speaker.

With decades of experience helping businesses manage costs and streamline operations, they’ve seen firsthand how unmanaged subscriptions can quietly erode profitability. 

In this informative video, Randy and Seth share their perspective on the hidden costs of recurring subscriptions, including practical strategies, tools, and best practices to regain control and protect your bottom line.

Transcript

Seth: As a business owner or someone looking out for finances, you want to have some control over spending, but what you’re spending on and what it’s doing for you. You’re used to maybe, in some cases, you are going to pay for what you get. We see it all over the place with our whole subscription mentality; when you subscribe to something, and or you pay maybe even a bit of a premium, what you’re getting back matters most. 

Randy: It does. I just reflected on the old cash is king phrase. But if you think about most businesses, we’re getting money in, so it’s the AR side, and we watch that. We’re putting money out typically in payables or payroll. So, we watch our spending, the cash in and out. 

But there is also a need to watch some of the recurring expenses because one of the things that is a common business mistake is getting comfortable with a particular spending level that’s unnecessary.   

And if we think about it, we’ll take it personally first, how many subscription services you have, and then do that with a business, and if you authorize, and let’s just say $10, that was the old cap. If you allow users to have as many $10 subscriptions as they want, they might have eight or 10 or 20, and all of a sudden, you’ve got real money tied up in all those little subscriptions, which don’t necessarily work together and don’t necessarily help the business in the same way.   

I’m amazed at how many times, when I analyze even small businesses, we uncover subscriptions to products that four or five people have, and they’ve built their own system outside the system in these subscription products.”  

Watch the full episode here. 

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