The verdict in three sentences
A SaaS licence is a recurring operating expense: easy to budget, it builds no balance-sheet value and keeps you dependent on a vendor. A proprietary build is a capitalised asset, amortised over 3 to 5 years, that strengthens valuation and makes you independent. The right call depends on your horizon: fast reversibility and flexibility → SaaS; capitalisation, independence and differentiation → build.
OPEX vs CAPEX: the accounting impact
Accounting treatment sharply separates the two models. 2026 order of magnitude for a comparable scope:
| Dimension | SaaS licence (OPEX) | Proprietary build (CAPEX) |
|---|---|---|
| Annual cost | 30,000 to 120,000 EUR / year | Build amortised over 3-5 years |
| Accounting treatment | Operating expense | Intangible asset |
| Balance-sheet impact | None (no asset) | Asset recorded, amortised |
| Valuation impact | Neutral to negative (dependence) | Positive (proprietary asset) |
| Budget predictability | High | High after build |
| Vendor dependence | Strong | None |
SaaS smooths cash flow; the build capitalises value that counts in due diligence or a fundraise.
The cost of reversibility
Exiting a SaaS carries an often-forgotten cost. To provision in 2026:
| Element | SaaS licence | Proprietary build |
|---|---|---|
| Entry cost | Low (0 to 10,000 EUR) | 60,000 to 140,000 EUR |
| Exit / reversibility | 5 to 10 % of annual contract | Low (code owned) |
| Data export and migration | Sometimes limited / billed | Full (database owned) |
| Price-hike risk | 5 to 10 % / year | None |
| Residual value | None | Amortised asset on balance sheet |
A SaaS contract with no clear reversibility clause exposes you to an exit cost and loss of data control.
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Mini case study
Sarah, CFO of an industrial SME in Montreal, is deciding on a core business system. The SaaS licence costs 78,000 EUR/year, i.e. 390,000 EUR over 5 years as pure expense, with no balance-sheet value and an 8 % annual rise. The proprietary build comes to 115,000 EUR capitalised, amortised over 5 years (23,000 EUR/year), plus 20 % maintenance (23,000 EUR/year), i.e. ~230,000 EUR over 5 years — part of it recorded as an asset. A 160,000 EUR saving and a valuable asset in a sale scenario: Sarah recommends the build to the executive committee.
FAQ
Why does a CFO sometimes prefer CAPEX? Because a proprietary software asset improves the balance sheet, can be amortised and weighs positively in valuation. Conversely, SaaS OPEX builds no capitalisable value.
Does SaaS only have accounting drawbacks? No: it preserves cash, avoids capitalisation and budgets easily. For a non-strategic or fast-evolving need, it is often the right call.
What is reversibility? It is your ability to leave a vendor while recovering your data and processes. Provision it at 5 to 10 % of the annual contract, and put it in the contract from signature.
Is custom software always capitalisable? In 2026, a proprietary build meeting accounting criteria is capitalised and amortised over 3 to 5 years. Confirm the treatment with your accountant upfront.
How to decide between expense and asset? If the software is strategic and durable, the proprietary asset wins; if peripheral or uncertain, the SaaS expense stays more flexible. The usage horizon decides.
Let's scope your project. Tell us your scope, amortisation horizon and balance-sheet constraints, and we model the costed OPEX vs CAPEX impact. 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.
