The verdict in three sentences
At USD 7 to 10 per user per month, an expense SaaS becomes a heavy line item once headcount passes 300 active users. A custom app with receipt OCR and accounting export costs USD 35,000 to 60,000 and pays back in 18 to 24 months at 300 users, about 13 months at 600. Below 150 users, SaaS almost always remains the better choice.
What the app must do
The functional core is well known: snap the receipt, read it automatically, categorise, manager approval, finance check, export to the ERP. The value of custom comes from company-specific rules: per-site allowances, travel policy, client rebilling, and mileage at the CRA per-kilometre rates for 2026.
| Module | Scope | 2026 budget (estimate) |
|---|---|---|
| Mobile PWA | photo capture, offline entry, mileage claims | USD 8,000 to 14,000 |
| Receipt OCR | amount, GST/HST, date, vendor via API (USD 0.01 to 0.05 per receipt) | USD 5,000 to 9,000 |
| Approval workflow | manager, controlling, thresholds by travel policy | USD 6,000 to 10,000 |
| Compliance rules | caps, duplicates, missing receipts, audit-ready archiving | USD 5,000 to 9,000 |
| Accounting and payroll export | journal entries for NetSuite, Sage Intacct or SAP, reimbursement by payroll or EFT | USD 6,000 to 10,000 |
| CFO dashboard | spend by cost centre, reimbursement lead times | USD 3,000 to 8,000 |
| Total | 6 modules | USD 35,000 to 60,000 |
Archiving must meet CRA record-keeping requirements for electronic copies (6 years retention) so paper receipts can be discarded, a point to require in the specification.
5-year total cost: SaaS or custom
Assumptions: SaaS at USD 8 per user per month for 300 users, USD 7 for 600 thanks to volume pricing, setup fees of USD 3,000 to 5,000. Custom at USD 45,000, then USD 8,000 a year (300 users) or USD 10,000 a year (600) for hosting, OCR and maintenance.
| Cumulative cost | SaaS 300 users | Custom 300 users | SaaS 600 users | Custom 600 users |
|---|---|---|---|---|
| Year 1 | USD 31,800 | USD 53,000 | USD 55,400 | USD 55,000 |
| Year 2 | USD 60,600 | USD 61,000 | USD 105,800 | USD 65,000 |
| Year 3 | USD 89,400 | USD 69,000 | USD 156,200 | USD 75,000 |
| Year 4 | USD 118,200 | USD 77,000 | USD 206,600 | USD 85,000 |
| Year 5 | USD 147,000 | USD 85,000 | USD 257,000 | USD 95,000 |
| 5-year saving | USD 62,000 | USD 162,000 |
At 300 users, break-even arrives around month 24. At 600 users, it is reached by the end of the first year. These projections are estimates: they ignore vendors' annual price increases (often 3 to 7%), which widen the gap further.
The criteria that tip the balance
| Criterion | Lean SaaS | Lean custom |
|---|---|---|
| User headcount | under 150 | over 300 |
| Travel policy | standard | rules per site, client or project |
| ERP | native connector available | specific or heavily customised ERP |
| Client rebilling | rare | frequent, with project codes |
| Time to go-live | 2 to 4 weeks | 3 to 4 months |
| In-house team | no IT resource | IT team able to manage a vendor |
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Mini case study
Sophie, CFO of a 600-employee logistics company in Toronto, currently pays USD 7 per user per month, i.e. USD 50,400 a year. She picks a custom app at USD 48,000 with export to NetSuite and per-client rebilling, plus USD 10,000 a year in run costs. The annual saving reaches USD 40,400, and the investment pays back in about 14 months. Over 5 years, the gap exceeds USD 150,000. There is a qualitative gain too: average reimbursement time drops from 23 to 8 days, which cuts employee follow-ups with finance.
FAQ
Is custom OCR as reliable as a specialised SaaS?
Yes, because it relies on the same market recognition APIs, with 92 to 97% of fields read correctly on North American receipts. Cost stays low, between USD 0.01 and 0.05 per receipt.
How long does deployment take?
Plan 3 to 4 months of development, then a 4 to 6-week pilot on one site before rolling out to all 600 employees.
Can we keep the SaaS during the build?
That is best practice: cancel at the next contract renewal. Check the notice period, often 1 to 3 months on annual contracts.
Who maintains the app after delivery?
The vendor under a maintenance contract of USD 600 to 1,200 a month, or your IT team if the code is documented and delivered to your Git repository.
Let's scope your project. Share your user count, your ERP and your expense policy: we cost the custom app with an indicative budget of USD 35,000 to 60,000 and a 5-year total cost compared with your current SaaS. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
