How to Manage Microsoft 365 Subscriptions and Billing

Estimated Time to Fix: 10 minutes

Applies to: Microsoft 365 Business
Article Type: How-To
Last Updated: 2026-07-21

Summary

Microsoft 365 is a subscription service. If you aren't paying attention, it is common to keep paying for software licenses you aren't using. Knowing how to navigate the Billing section of the Admin Center allows you to download tax receipts, update expired credit cards, and stop wasting money on empty seats.

Prerequisites

• You must log in with an account that has Global Admin or Billing Admin privileges.

Instructions

1. How to download your invoice for taxes

Your accountant will inevitably ask you for your Microsoft receipts at the end of the year.

1. Go to the Microsoft 365 Admin Center and log in.
2. In the left navigation pane, click Billing. (If you don't see it, click Show all first).
3. Click Bills & payments.
4. Click the Invoices tab.
5. You will see a list of your monthly charges. Click the Download PDF icon next to the month you need, or use the date filter to download the entire year.

2. How to update your credit card

If your credit card expires, Microsoft will eventually suspend your email accounts.

1. In the Admin Center, go to Billing > Bills & payments.
2. Click the Payment methods tab.
3. Click Add a payment method to enter your new credit card.
4. Once the new card is saved, click the three dots next to your old, expired card and select Delete.
5. Important: Microsoft will ask you to link your active subscriptions to the new card before it lets you delete the old one.

3. How to stop paying for unused licenses (Empty Seats)

The most common mistake small business owners make is deleting a departed employee's account, but forgetting to cancel the billing for that seat.

1. Go to Billing > Your products.
2. Click on the name of your subscription (e.g., Microsoft 365 Business Standard).
3. Look at the section titled Licenses. It will show "Assigned" (currently used by an employee) and "Available" (empty seats you are paying for but not using).
4. If you have Available licenses that you do not plan to use, click the Remove licenses link.
5. Type the new total number of licenses you want to pay for (it must match your Assigned count).
6. Click Save. Your next monthly bill will be reduced.

4. How to buy more licenses for new hires

When you hire someone new, you need to buy a seat for them before you can create their email address.

1. Go to Billing > Your products.
2. Click on your subscription.
3. Under the Licenses section, click Buy licenses.
4. Add the number of new seats you need.
5. Click Save. Microsoft will charge your card a prorated amount for the rest of the month, and you can now assign that license to the new user.

Buying a seat and assigning a seat are two separate actions, and that catches most owners once. Understanding the Microsoft 365 Admin Center for Non-IT Owners maps out where each one lives.

Troubleshooting

WARNING

If you purchased your Microsoft 365 subscription through a third-party IT company (a Managed Service Provider or Reseller like GoDaddy), the Billing tab will not exist in your Admin Center. You must contact your IT partner directly to manage billing and licenses.

Symptom / Error	Potential Cause	Solution
"Remove licenses" option is grayed out	Annual Commitment	If you purchased an Annual subscription paid monthly (often called NCE), you cannot reduce your license count until your annual renewal date.
I can't access the Billing tab	Not an Admin	You are logged in with a standard user account. You must switch to your Admin account.

Related Articles

• Understanding Microsoft 365 Licensing and Plan Differences
• How to Add or Remove Users in Microsoft 365 Admin Center
• Understanding the Microsoft 365 Admin Center for Non-IT Owners
• How to Set Up Microsoft 365 for a Small Business

Did this solve your problem?