Blog Post
Build vs. Buy: The True Cost of Reconciliation Software
It is a debate that happens in every high-growth company boardroom. Your engineering team says, "We can build a simple matching script in a weekend." Your CFO says, "We need a scalable solution now." In the world of reconciliation cost, the "build vs. buy" decision is rarely as simple as checking a price tag. It’s about technical debt, maintenance, and the hidden costs of managing a non-core product.
The Illusion of "Free" Internal Tools
On the surface, building an internal tool seems practically free. You already pay your developers, so why not have them write a Python script to match your Stripe payouts to your database?
The problem is that reconciliation business logic is deceptive. It starts with simple "1-to-1" matching. But within months, you will encounter:
- Edge Cases: Partial refunds, chargebacks, and FX adjustments.
- Maintenance: APIs change. Banks update their CSV formats. Every change requires engineering time to fix.
- Audit Trails: Auditors won't accept "our script said it matched." They need immutable logs, user permissions, and approval workflows.
The True Cost of Ownership (TCO)
Let's break down the math over a 3-year period.
Option A: Build
- Initial Build: 2 Senior Engineers x 2 Months = $60,000+
- Maintenance: 20% of an Engineer's time annually = $30,000/year
- Opportunity Cost: Engineers aren't working on your core, revenue-generating product.
- Total 3-Year Cost: $150,000+ (Conservative Estimate)
Option B: Buy (Reconwizz)
- Implementation: 2-4 Weeks (Low internal effort).
- Maintenance: Included in subscription. We handle API updates and bank format changes.
- Features: Advanced AI matching, audit trails, and multi-currency support out of the box.
- Total 3-Year Cost: Significantly less than building, with zero technical debt.
Why "Buying" Wins for Scale
Buying specialized software like Reconwizz isn't just about saving money; it's about buying speed and reliability.
When you buy, you inherit thousands of hours of R&D. You get a platform that has already solved the edge cases your engineers haven't even thought of yet. You get a dashboard your finance team can actually use, reducing their reliance on engineering for data pulls.