Software License Inventory for Small Business: What to Track and Why

A software license inventory is boring to create and invaluable when a software audit arrives. Here's how to build one that actually works.

A software auditor asks your business to document every software license you own and every installation on every device. Do you know where that information is?

Most small businesses don't. Licenses are in email inboxes, physical boxes in a drawer, scattered across different people's purchase accounts, or simply unknown. When an audit notice arrives, the scramble begins — and that's expensive.

Here's how to build and maintain a software license inventory that protects your business.

Why This Matters

Audit protection: Software publishers (Microsoft, Adobe, Autodesk) and industry bodies (BSA) conduct audits. If you can't prove you're licensed for what you're using, you pay for the licenses retroactively — plus penalties.

Cost control: Most businesses pay for more licenses than they use. A simple inventory reveals expensive software running on machines where nobody has opened it in months.

Security: Unlicensed or untracked software doesn't receive security updates. Unknown software on your network is a security risk — especially software installed by former employees.

Renewal management: Subscription licenses (Microsoft 365, antivirus, accounting software) have renewal dates. Missing renewals means losing access at a critical moment.

What to Track: The Essential Columns

A simple spreadsheet with these columns covers most small businesses:

Column	What to Record	Example
Software name	Full product name	Microsoft 365 Business Standard
Vendor	Publisher	Microsoft
Version	Installed version	Current (subscription)
License type	How it's licensed	Subscription / Perpetual / OEM
Seats purchased	Number you're entitled to	15
Seats in use	Current active users	12
License key	Key or serial (if perpetual)	Stored in password manager
License key location	Where to find it	1Password > Software Licenses
Renewal date	When subscription renews	2027-03-01
Annual cost	Total annual spend	3,240,000 VND/year
Cost per seat	Per user monthly	18,000 VND/seat/month
Assigned to	Contact who manages it	IT Manager
Notes	Any important details	Includes Teams, OneDrive, Exchange

Categories of Software to Track

Operating Systems:

• Windows (OEM, retail, or volume license) — one per device
• Check: is it Windows 10 Pro, 11 Pro, or Home? Some software requires Pro

Office Productivity:

• Microsoft 365 (subscription) or Office 2021/2019 (perpetual)
• Google Workspace

Security:

• Antivirus/EDR (Kaspersky, ESET, Sophos, etc.)
• VPN software

Accounting and ERP:

• MISA, Fast Accounting, Bravo, SAP, etc.
• Note: Vietnamese accounting software typically has per-device or per-user licenses

Communication:

• Microsoft Teams (often included in M365)
• Zoom
• Slack

Design and Engineering:

• Adobe Creative Cloud
• AutoCAD
• CorelDRAW

Industry-Specific:

• Any specialized software your business uses

Tracking Microsoft 365 Specifically

Microsoft 365 is subscription-based. Key things to track:

• Plan type — Business Basic, Business Standard, Business Premium? Each has different features and pricing
• License count — licenses are per user; unused licenses cost money
• Admin portal — the Microsoft 365 Admin Center shows your current license count, active users, and renewal date
• Check for waste — licenses assigned to employees who left? Assign to new staff or remove

Microsoft's Admin Center gives you real-time visibility; check it quarterly.

Tracking Perpetual (One-Time Purchase) Licenses

Perpetual licenses (like Office 2021, AutoCAD LT 2023) are purchased once. Key things to track:

• Where is the key? — If you lose it and need to reinstall, you're stuck
• What version? — Perpetual licenses can't use newer versions without purchasing again
• Which device? — Many perpetual licenses are tied to a specific computer (OEM) or a limited number of devices

Store keys in a password manager or encrypted document, not on a sticky note or unencrypted spreadsheet.

Tools for Automated Discovery

If you have many computers, manually checking each one is time-consuming. These tools scan your network:

Belarc Advisor (free): Installs on a PC and creates a detailed inventory of installed software and licenses for that machine.

GLPI (free, open source): Network inventory tool that can scan multiple computers and aggregate results centrally.

PDQ Inventory (paid, Windows): More sophisticated, can push to all managed computers and report centrally.

Microsoft 365 Admin Center (built-in): Already shows software license assignment for Microsoft products.

For a 10-20 person office, manual inventory via Belarc Advisor per machine is sufficient. Larger offices benefit from a centralized tool.

How Often to Review

• Quarterly: Check for unused licenses you're paying for
• When employees join: Assign licenses and document them
• When employees leave: Reclaim and reassign licenses; remove from device inventory
• Annually: Full review — compare purchased vs. installed, update renewal dates

What Happens If You Find Unlicensed Software

If your inventory reveals software running without a valid license:

1. Stop using it immediately on unlicensed devices
2. Purchase the required licenses (many vendors offer catch-up licensing)
3. Or uninstall the software

Self-discovery and remediation before an audit significantly reduces risk and penalties. Publishers generally treat cooperative businesses better than those who deny or ignore issues.

Vietify Can Help

If you need help conducting a software inventory, managing Microsoft 365 licenses, or preparing for compliance, Vietify provides IT management for businesses in Da Nang and Vietnam.

Contact us → or get a free IT assessment that includes a software license review.

Vietify IT Services — IT management and compliance support for businesses in Vietnam.