Simply put, through the chain of processes they represent, they break down the nitrogen bearing materials such as ammonia into the nitrates the plants need, as well as enhancing the nutrient uptake in a number of ways. More details in a bit. In the mean time, research Mycorrhizal Fungi, Nitrobacter, Nitrosomonas, Rhizobia, Trichoderma, and Plant Growth-Promoting Rhizobacteria.
Microorganisms are essential to soil formation and soil ecology because they control the flux of nutrients to plants, promote nitrogen fixation, and promote soil detoxification of inorganic and naturally occurring organic pollutants. Microbes increase soil fertility through nutrient recycling such as carbon, nitrogen, sulphur, and phosphorus. Microorganisms play a crucial role in the recycling of elements by breaking down complex organic compounds into simpler forms. Without microbes, the earth would be filled with corpses. Bacteria break down (or decompose) dead organisms, animal waste, and plant litter to obtain nutrients. But microbes don't just eat nature's waste, they recycle it. Bacteria constitute the foundation of all of Earth's ecosystems, being responsible for the degradation and recycling of essential elements such as carbon, nitrogen and phosphorus. Bacteria and fungi are responsible for most of the mineralization of organic matter in soils. Soil microorganisms are responsible for most of the nutrient release from organic matter. When microorganisms decompose organic matter, they use the carbon and nutrients in the organic matter for their own growth. They release excess nutrients into the soil where they can be taken up by plants. Microorganisms such as algae, bacteria, and fungi are present in the soil. Bacteria and fungi present in the soil feed on dead plant and animal matter to form humus, which is rich in nutrients and makes the soil fertile. This is how microorganisms make the soil fertile.Soil fertility can be further improved by incorporating cover crops that add organic matter to the soil, which leads to improved soil structure and promotes a healthy, fertile soil; by using green manure or growing legumes to fix nitrogen from the air through the process of biological nitrogen fixation. Soil microorganisms are responsible for most of the nutrient release from organic matter. When microorganisms decompose organic matter, they use the carbon and nutrients in the organic matter for their own growth. They release excess nutrients into the soil where they can be taken up by plants. Bacteria break down (or decompose) dead organisms, animal waste, and plant litter to obtain nutrients. But microbes don't just eat nature's waste, they recycle it. The process of decomposition releases chemicals that can be used to build new plants and animals.