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Our best accounts payable automation software 2025

Accounts payable automation software for small businesses

Streamline the entire process of managing invoices by removing manual workflows
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Tipalti

Price
Custom
OCR invoice scanning
Yes
PO management
Yes
Supplier portal
Yes
Trustpilot score
4.6/5
More Information
Key features
  • End-to-end automation from invoice to reconciliation
  • Self-service supplier portal for onboarding and invoicing
  • Robust tax compliance (including HMRC CIS)
  • Global payments with UK-specific BACS support
Eligibility
Recommended forMid-market to enterprise businesses with high invoice volumes, complex approval needs, or many international suppliers.
Not recommended forSmall businesses or freelancers with low invoice volume and no need for a supplier portal or advanced compliance features.
IntegrationsNetSuite, Sage (Intacct, 50, 200), QuickBooks, Xero, SAP

Payhawk

Price
Custom
OCR invoice scanning
Yes
PO management
No
Supplier portal
No
Trustpilot score
4.2/5
More Information
Key features
  • Unified platform for cards, expenses, and invoices
  • Strong multi-entity management for corporate groups
  • Live, bi-directional sync with major ERPs
  • Payments in GBP, EUR, and USD
Eligibility
Recommended forScaling tech companies and mid-to-large enterprises seeking to consolidate all company spending for better visibility.
Not recommended forSmall companies that do not need advanced features like multi-entity management or live ERP syncs.
IntegrationsNetSuite, Microsoft Dynamics, Xero, QuickBooks, Sage

Precoro

Price
Custom
OCR invoice scanning
Yes
PO management
Yes
Supplier portal
Yes
Trustpilot score
4.7/5
More Information
Key features
  • Full Procure-to-Pay (P2P) workflow management
  • Advanced Purchase Order (PO) creation and approvals
  • 3-way matching (PO, invoice, receipt) for control
  • Vendor portal for POs and invoice submission
Eligibility
Recommended forCompanies needing strict control over the entire purchasing process, from requisition and budget checks to payment.
Not recommended forBusinesses that don't use a formal PO system and just want to automate the payment of existing invoices.
IntegrationsQuickBooks Online, Xero, NetSuite

Pleo

Price
From £9.50 per month
OCR invoice scanning
Yes
PO management
Yes
Supplier portal
No
Trustpilot score
4.4/5
More Information
Key features
  • User-friendly interface
  • Unifies invoice payments with employee expenses
  • Mobile invoice management with duplicate detection
  • Integrated BACS payments from your Pleo wallet
Eligibility
Recommended forSMEs that prioritise a simple, unified way to manage employee expenses and basic AP.
Not recommended forCompanies with formal procurement departments, multi-step approval needs, or a requirement for a self-service supplier portal.
IntegrationsXero, QuickBooks, Sage 50, DATEV
Last updated
August 19th, 2025

Accounts payable software explained

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.

Top benefits of accounts payable automation

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

Key features of accounts payable automation software

The features within accounts payable software will vary depending on your provider, but here are some key features to look for if you want to streamline the invoice-to-payment process

Invoice capture

AP software should be able to receive invoices from various sources, including email attachments and scanned documents. It can then scan the invoices and extract the data.

Automated approval workflow

This feature allows you to set up specific approval workflows so that the right people have access to the sign-off process.

Validation

This helps to prevent fraud and errors by automatically matching the data on the invoice with the corresponding PO.

Integration with financial systems

Another useful feature is when AP software integrates with your existing accounting software, meaning that everything will be synchronised.

Common accounts payable challenges and how automation solves them

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.

How to choose the right accounts payable software for your business

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.

1. Assess your current process

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.

2. Prioritise key features

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.

3. Consider long-term value

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.

4. Check reviews

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.

Other top providers of accounts payable software

NetSuite

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

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

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

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

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.

FAQs

How much does accounts payable software cost?

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.

What is AP automation and how can it help my business?

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.

Is AP software secure?

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.

Can AP software handle international payments?

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.

About the author

Joe Phelan
Joe joined the money.co.uk team in 2024. His role is to demystify business finance by creating jargon-free, practical content.

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