See how forward-thinking finance teams are future-proofing their organizations through AP automation.
Accounts payable software isn’t just for enterprise corporations. Today, organisations of every size are running smart accounting programmes at reasonable prices.
Accounts payable automation tools can help streamline operations and make invoice processing more efficient. Here are a few things a small business needs to know about the software and how it can elevate your workflow:
Benefits of AP Software
When a small business adds accounts payable software to the back office, it gains the ability to automate legacy accounting systems. In addition to robust payable solutions, small businesses can also improve cash flow and tighten up accounts receivable.
Other benefits include:
- Reduction in late fees. Digital payable solutions help small businesses pay bills promptly, it’s easier to avoid late fees.
- Real-time views. View real-time data that leads to more intelligent decision making.
- Cloud storage. Bills are stored on remote servers, which means it’s possible to access documents from anywhere at any time. This is a huge advantage over traditional hard-copy AP management, which is not compatible with today’s gig culture. Some software services also offer mobile apps, adding another layer of convenience.
- Fewer errors in data entry. Automation software is more accurate than human labour. Digital accounting solutions provide a level of attention that isn’t possible with traditional payment processing.
The Most Popular Accounts Payable Software for Small Business
The following accounts payable solutions are some of the more popular digital tools available to AP offices today:
Tipalti
Available in both mobile and desktop versions, Tipalti is an all-in-one accounts payable automation software platform that specialises in U.S. and global transactions (including mass payments). It’s one of the best AP platforms because the brand delivers functionality in 120 currencies across 196 countries. Money can be sent via ACH, PayPal, global ACH, e-cheque, wire transfer, and several other methods.
Sending cross-border payments is further simplified with tools that meet regulatory and tax compliance. The company’s software always obtains tax data from payees during onboarding.
Features for AP automation include instant reconciliation and electronic document capture (optical character recognition (OCR)). The software can quickly identify payment conflicts and obtain missing information from a payee.
Tipalti’s platform integrates multiple ERPs and software programmes, including QuickBooks Online, NetSuite, and Sage Intacct.
QuickBooks
Delivered by Intuit, QuickBooks is AP management software popular among small businesses and freelancers looking for bookkeeping. It’s available in web-based (QuickBooks Desktop) and mobile (QuickBooks Online) versions and can be used as a cloud-based version or as a legacy programme.
Key features of the software include payment tracking, invoice management, expenses, and exporting data to Excel. Thanks to a mobile receipt capture tool, manual data entry isn’t necessary.
QuickBooks also simplifies bookkeeping by integrating with your bank accounts and providing real-time insights into approval workflows, audit trails, and cash flow. Similar alternatives to QB include brands like FreshBooks and BILL (formerly Bill.com).
Xero
Small businesses on a budget might want to check out Xero. Starting at just £16 per month, the low-cost plan allows users to send five invoices and enter up to five bills. The system will allow for 20 bank transactions for reconciliation per month.
The Xero platform works best for small and medium-sized businesses. It offers features like reconciliation, automating the approval process, expense tracking, payroll, reporting, and more.
Xero also offers multi-currency functionality, full-service payroll, time tracking, and unlimited invoices for a higher fee. The software might be worth a test drive as the company has a free 30-day trial.
Sage Intacct
Sage Intacct offers SaaS applications in a cloud-based environment, and is an end-to-end automation solution that businesses find appealing. The company provides various digital resources, including a general ledger, invoice automation, and time tracking.
The AP process can be simplified with many of Sage Intacct’s tools. There are options to make payments by cheque, credit card, and bank transfer.
Finance teams also deem it one of the best accounts payable platforms because of tools like bank reconciliation and mass reimbursements. Discrepancies can easily be detected among accounting records. The tool is user-friendly and provides stellar performance on a large number of transactions.
NetSuite
Small businesses needing a cloud ERP software solution should look at Oracle’s NetSuite. Today, more than 40,000 organisations, finance teams, and business owners use the SaaS platform for cloud accounting and business intelligence.
On the NetSuite platform, it’s possible to search purchase orders by vendor payments, item, and date. The software also offers credit card processing and other merchant services.
The programme boasts numerous financial management tools. Financial statements can be quickly generated and bank accounts can easily be managed. Furthermore, it’s simple to monitor cash flow with multiple tools. Comparable tools to NetSuite include systems like SAP.
Lightyear
Lightyear is a cloud-based procurement and AP automation system that simplifies purchasing and invoice processing. The platform streamlines workflows by automating purchase orders, invoice approvals, and PO matching.
Offering real-time insights and automatic reporting, Lightyear helps a business manage budgets more effectively while enhancing collaboration. The system integrates seamlessly with leading accounting software like QuickBooks, Xero, and Sage.
Lightyear is especially beneficial for businesses looking to reduce manual workloads, improve compliance, and save time on accounts payable tasks. However, it can be used by any sized business.
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Zahara
Zahara is a spend management platform that empowers businesses to monitor and control the purchasing and AP process. Features include tools for budget tracking, PO creation, invoice matching, inventory management, and more.
The system’s automation capabilities reduce time-consuming tasks, human errors, and compliance issues. Zahara integrates with popular accounting platforms like Xero and QuickBooks.
Zahara focuses on simplicity and user-friendly dashboards, making it a more practical choice for companies aiming to improve efficiency and streamline the payable process.
Nook
Nook is tailored for modern companies seeking to streamline purchasing, spend management, and accounts payable processing. The small business accounting software offers real-time budget tracking, team collaboration tools, and automated approval workflows.
Nook’s intuitive design makes it easy for companies to manage procurement and ensure compliance. It also integrates with popular financial systems, providing a cohesive programme for managing spend and reporting. Nook is also particularly well-suited for organisations seeking to enhance efficiency and reduce manual processes.
Quadient
Formerly Beanworks, Quadient is an accounts payable automation solution that helps manage invoice-to-payment workflows with ease. It automates tasks like invoice data capture, coding, and approvals, freeing up time for finance teams.
Quadient offers real-time reporting and advanced analytics, providing deeper insights into AP performance and cash flow. Integrating with major ERP and accounting systems, the system simplifies financial processes and reduces manual errors.
Quadient modules are designed for businesses of all sizes, making it a powerful tool for UK businesses seeking to optimise AP operations and reduce costs. The company claims the software reduces over 80% of traditional data entry tasks.
Kefron
Kefron is a document management and provider of accounts payable automation. The AP automation software simplifies invoice capture, validation, and approval workflows while enhancing visibility and compliance.
Kefron helps finance teams reduce manual workloads and mistakes with intelligent data extraction and integration capabilities. It provides document storage and management services, ensuring secure and efficient document archiving. It also caters to companies in various industries, aiming to completely optimise document handling and financial workflows.
Choosing the Right Software
To find the right software, a small business should start by looking at its budget and needs. What are the top features you need to accommodate current workflows? Does your process need customisation? Thoroughly assess your current pain points and identify areas where automation has the biggest impact. Additionally, establishing a realistic budget ensures you focus on functional and financially viable options.
Then, a little research is in order. Consider features of AP automation software that would be a priority for your organisation, such as document management, scanning, and PO-matching.
For example, document management tools centralise and organise invoices, while OCR capabilities can eliminate manual data entry. If purchase orders are a crucial component, look for systems that include PO-matching to ensure invoices and payments are accurate. Some platforms offer advanced features like real-time reporting or integration with your existing accounting software. This can enhance efficiency and visibility across financial processes.
Lastly, you must also consider scalability and ease of use. Software that grows with your business and accommodates increasing transaction volumes will save time and resources.
Systems with intuitive interfaces and strong customer support can simplify implementation and ensure a smoother transition. Look for user reviews and request demos or free trials to get a hands-on feel. A thorough evaluation of needs and comparing options against priorities, means an organisation can confidently select a solution that delivers value and supports growth.
With so many options today, the most difficult part will be sorting through all the choices and finding the perfect fit! If you’re ready to begin your AP automation journey, get started with Tipalti today!
