Microsoft 365 Admin Center guide: managing users, licenses, and security

The Microsoft 365 Admin Center is the control hub for businesses using Microsoft 365. It lets administrators manage users, assign licenses, secure data, and monitor activity—all from one dashboard. Whether you’re a small business IT manager or part of a larger enterprise, mastering this tool will help you keep your Microsoft 365 environment running smoothly and securely.

Here’s a detailed guide on how to use Microsoft 365 Admin Center to manage users, licenses, and security settings effectively.

What is the Microsoft 365 Admin Center?

Microsoft 365 Admin Center is a web-based management console for IT administrators. You can access it at:
👉 https://admin.microsoft.com

It provides centralized tools to:

  • Create and manage user accounts
  • Assign or remove licenses
  • Reset passwords and manage sign-in options
  • Set security defaults and conditional access
  • Access billing and usage reports
  • Manage services like Exchange, SharePoint, and Teams

Managing users

1. Add new users

To add a user manually:

  • Go to Users > Active users
  • Click Add a user
  • Enter the user’s name, username, and contact details
  • Choose the product licenses (e.g. Microsoft 365 Business Standard)
  • Set roles (User or Admin)
  • Configure optional settings (password preferences, location)
  • Finish and send the credentials to the user

You can also bulk import users via CSV file upload.

2. Reset passwords or block sign-in

  • Go to Users > Active users
  • Click on a user’s name
  • Select Reset password, Block sign-in, or Delete user

3. Assign or remove licenses

  • Select a user > Licenses and apps
  • Check or uncheck the specific Microsoft 365 licenses (e.g. Exchange Online, Teams, OneDrive)
  • Save changes

Licenses are assigned per user, and you can reassign them anytime.

Managing licenses and subscriptions

1. View your subscriptions

  • Go to Billing > Your products
  • View all active subscriptions, their status, and renewal date
  • Click on a subscription to view users and included services

2. Purchase or cancel licenses

  • Go to Billing > Purchase services
  • Choose a plan (e.g. Business Premium, Microsoft Defender for Business)
  • Specify how many licenses you want
  • Confirm billing info and complete the purchase

You can cancel or modify licenses anytime under Billing > Licenses.

3. Assign in bulk

Use the Bulk edit feature to assign or remove licenses for multiple users at once.

Managing security and compliance

1. Use Microsoft Entra ID (Azure AD)

The Admin Center integrates with Microsoft Entra ID, where you can:

  • Create and manage user groups
  • Apply conditional access policies
  • Require MFA (multi-factor authentication)
  • Set sign-in restrictions

Access it from Admin centers > Azure Active Directory.

2. Set security defaults

To protect your environment with basic best practices:

  • Go to Azure Active Directory > Properties > Manage security defaults
  • Enable Security defaults to enforce MFA and block legacy auth

Great for smaller businesses without full IT security teams.

3. Monitor threats and activity

Under Reports and Security & Compliance, you can:

  • Monitor login attempts, device usage, and risky sign-ins
  • View DLP (data loss prevention) alerts
  • Access audit logs and compliance scores
  • Get recommendations for securing data and identities

You can also explore Microsoft Defender for advanced threat protection.

Admin roles and delegation

You can assign admin roles with different levels of access:

  • Global admin – full control over all settings
  • User management admin – manage user accounts and groups
  • Billing admin – handle subscriptions and invoices
  • Service admin – manage Exchange, Teams, etc.

Assign roles from:
Users > Active users > Select user > Roles

Final tips

  • Use Groups (Microsoft 365 or Security groups) to manage permissions and shared resources
  • Schedule regular backups and audits
  • Keep track of license usage to avoid overspending
  • Use the mobile admin app for basic management on the go
  • Regularly check the Message center for Microsoft 365 updates and announcements

The Microsoft 365 Admin Center gives you powerful tools to manage your digital workplace. With the right setup and ongoing monitoring, you can keep your team productive—and your data secure.

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