This article is part of our Business and Enterprise Software resource section.
Building vs. Buying Financial Software
If you’re in the financial sector and a big part of your job involves trying to keep up with client needs, regulatory demands, or product innovation, you probably rely (or plan to rely) heavily on financial software. But aside from choosing between the different products on offer, there’s an important question to ask before you even start looking: should you build or buy your software? Before making that decision, it is useful to understand the definition of ERP and how integrated enterprise systems can support financial and operational processes.
Not every business is going to have the same answer, here. But if you’re a fast-moving firm, it’s worth looking closely at what each option offers and considering where custom development can give you an edge.
Here, we’re comparing building vs buying financial software, so you can decide on the best option for your budget and needs.
Table of Contents
Speed of Deployment
Buying off-the-shelf software has the advantage of speed from the get-go. For specific financial tasks, online invoicing software can similarly offer ready-to-use functionality without the development time associated with a custom platform. Since most sellers have pre-built solutions with basic configurations, you’ll have what you need to get up and running faster, which is great if you’re under time pressure to go live. For businesses looking to modernize their financial operations without managing infrastructure themselves, cloud accounting software can also provide a practical alternative.
But this initial speed might end up costing you later on. For example, businesses moving toward paperless financial workflows may need to consider how an electronic invoice will fit into their existing systems. You’ll face issues if your system doesn’t fit how you actually work, or isn’t designed to scale with your growth, leaving you with no choice but to build workarounds or even switch platforms altogether. Comparably, custom software takes longer upfront, but the big advantage is that you have more control over its long-term efficiency.
Cost and Resource Management
When you’re buying software, there’ll usually be a clear upfront fee to pay, along with ongoing licensing (and possibly subscription) costs. The same cost considerations apply when selecting billing software, particularly when comparing subscription fees with the value of the features included.
That makes it the more predictable option, and you won’t need to worry about the cost of hiring a large in-house dev team to maintain it. This predictable model can be especially attractive when selecting specialized tools such as invoice software for routine financial processes.
If you’re building a custom solution with a company like Devexperts, it will, of course, involve more initial investment. But you’re getting better value from your investment, since you’re not paying for features you don’t need or stuck with pricing models that hinder your growth. You also get to adapt your platform as your business model evolves, which can help you keep your operational costs down over time.
Fit and Flexibility
Off-the-shelf platforms tend to be pretty rigid, with not much room (if any) for customization. If you’re trying to do something outside the standard model, there’s a good chance you’ll find yourself boxed in.
If you’re after flexibility, building with a specialist partner is the better alternative. You’ll be able to design the workflows and interfaces that your teams actually need, which offers a big advantage if you’re trying to differentiate yourself in a crowded market. Custom workflows can be particularly valuable when a business needs to adapt its billing and invoicing process to unique products, customers, or payment requirements.
Financial businesses can also use this flexibility to build payment workflows around their specific requirements, including knowing what to look for in a payment orchestration platform.
Which is Best: Buying or Building Your Software?
If you’re testing new products or expanding into new markets, building software with a tech partner like Devexperts is probably going to give you the flexibility and control you need. But that doesn’t mean it’s always the right choice. Businesses with specialized financial requirements may also need to consider blending lease accounting software into your digital framework when deciding how much customization their technology stack requires.
Buying your software may still suit you if you’re a smaller or slower-developing business, and you don’t necessarily need to respond quickly to the markets or scale without compromise.
For companies that already have accounting tools in place, updating your accounting software can sometimes be a more practical step than replacing the entire financial system.
