Recommended for | Mid-market to enterprise businesses with high invoice volumes, complex approval needs, or many international suppliers. |
Not recommended for | Small businesses or freelancers with low invoice volume and no need for a supplier portal or advanced compliance features. |
Integrations | NetSuite, Sage (Intacct, 50, 200), QuickBooks, Xero, SAP |
Recommended for | Scaling tech companies and mid-to-large enterprises seeking to consolidate all company spending for better visibility. |
Not recommended for | Small companies that do not need advanced features like multi-entity management or live ERP syncs. |
Integrations | NetSuite, Microsoft Dynamics, Xero, QuickBooks, Sage |
Recommended for | Companies needing strict control over the entire purchasing process, from requisition and budget checks to payment. |
Not recommended for | Businesses that don't use a formal PO system and just want to automate the payment of existing invoices. |
Integrations | QuickBooks Online, Xero, NetSuite |
Recommended for | SMEs that prioritise a simple, unified way to manage employee expenses and basic AP. |
Not recommended for | Companies with formal procurement departments, multi-step approval needs, or a requirement for a self-service supplier portal. |
Integrations | Xero, QuickBooks, Sage 50, DATEV |
Accounts payable or AP software helps to streamline the process of managing invoices and paying vendors. It helps businesses to improve efficiency and gain control over their finances by replacing manual tasks with an automated and digital workflow.
AP software normally automates each step of the invoice-to-payment cycle. This includes invoices that are received electronically by email, invoices matched with the correct purchase order (PO), a digital approval workflow, integrated payments and real-time reporting.
It acts like a central hub for this process, reducing human error and providing greater visibility for the whole organisation.
Accounts payable automation offers many benefits to small businesses as it can transform your financial operations with its use of digital tools. Here are some of the ways it can help:
Cost and time savings - automation can help to lower the cost of processing invoices compared to manual methods
Reduces errors - manual entry is prone to human error as it's easy to miss a typo or add incorrect data. AP automation use specific technology to automatically capture data to minimise mistakes
Gives control - all invoice data can be stored within the software, making it easy to find information and pivot the business if needed
More security - AP software normally comes with role-based access controls, so the same person cannot submit, approve and pay an invoice
Timely payments - this type of software can give your suppliers reassurance that they'll be paid on time, which will strengthen your business relationships
Your finance department can face some challenges when they are tackling the accounts payable system. These issues normally stem from manual processes, and automation helps to remove the pain points.
Manually entering data, like invoice numbers and vendor names, can be time-consuming and a simple mistake can lead to incorrect payments and late fees. Instead, AP automation uses technology that automatically scans and extracts data from invoices.
Another challenge can be a slow approval workflow. In the past, invoices were physically passed from desk to desk or sent via email for approval. With automation, there is a digital approval workflow where approvers can review invoices quickly and easily. You can also set up reminders so no one forgets to approve!
Plus, don't forget that as your business grows so will the volume of invoices. If you have a manual system this will be difficult to manage, but AP automation can handle an increase of invoices and it won't put a strain on your current workforce.
Choosing the right accounts payable software is an important decision for your business, but it can be difficult to know where to start. The good news is there is software available for businesses of all sizes, you just need to consider your own needs first.
Before making a decision, take a look at your current process and understand what problems you are trying to solve. For example, map your workflow and flag areas where you could improve efficiency.
Once you understand your current pain points, this will help you to prioritise essential features within the software. Some businesses might be struggling with their approval process, so AP automation can help with customisable approval workflows.
What are your big plans for the future? Will your invoices dramatically increase during the next few years? If yes, look for software that can easily scale to accommodate this growing volume.
It's always a good idea to do your research and evaluate the software provider. It should be easy for your team to use, so find customer reviews or ask for a free trial to test the user experience before making your final decision.
NetSuite's AP automation can help small businesses with their finances as it removes manual tasks. It does this by automating invoice capture and payment approvals, so business owners can focus on running their business rather than struggling with admin tasks that are time-consuming.
Sage's account payable software can be integrated with its accounting software, which helps to streamline all financial processes. This means small businesses are not overwhelmed with managing different types of software.
QuickBooks has a built-in AP automation feature which helps small businesses to manage their expenses. It automates data entry and bill tracking, so that anyone can stay on top of their accounts without a complicated system.
SAP provides accounts payable automation for small businesses primarily through its SAP Business One ERP platform. This allows small businesses to streamline invoice processing from receipt to payment, reducing manual effort, minimising errors, and improving cash flow management.
Yooz uses AI and machine learning to help small businesses process invoices, manage approvals, and make payments quickly and easily. The entire invoice process is digital and there's real-time visibility into cash flow, which gives businesses control of their finances.
The cost of accounts payable software will vary depending on your business size and the volume of invoices you need to process. Most providers offer a subscription-based model based on your specific business needs.
Accounts payable (AP) automation is the use of technology to streamline the entire process of managing invoices. This helps to save money and time by reducing manual tasks.
Yes, this type of software is generally more secure than manual processes. It can't be risk-free, but most software comes with security features to give businesses peace of mind.
Yes, there is AP software that can handle international payments, but always check with your provider that this is included if it's essential for your business. AP software can come with multi-currency support and international compliance and tax management to ensure its handled effectively.
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