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The Best AP Automation for Xero in 2024

Learn how to integrate Tipalti AP automation with Xero accounting software.

AP automation for Xero is available as third-party add-on software with seamless Xero integration. You can choose AP automation software with the most robust features to gain paperless digital efficiency and functionality in end-to-end payables, including invoice processing with global payments in local currencies. 

In this article, we’ll examine Xero accounting software, AP automation, the best Xero accounts payable automation platforms for 2024, and how to choose the best AP automation solution integrated with Xero for your business needs. 

A Quick Overview of Xero

Xero, a Tipalti partner, provides cloud-based accounting software (rather than a Xero ERP). Like its competitor QuickBooks, Xero is used primarily by startups, small businesses, and mid-sized companies (SMBs). According to Enlyft:

“Of all the customers that are using Xero, a majority (59%) are small (1000 employees) and 32% are medium-sized.”

Xero accounting software is easy to use for online accounting in many different industries. Xero functionality, depending on your company’s SaaS plan choice, can include:

  • Sending invoices and quotes
  • Entering and capturing bills through Hubdoc
  • Reconciling bank transactions, using a bank feed
  • Providing short-term cash flow and business snapshot
  • Reconciling bulk transactions
  • Using multiple currencies, tracking projects, claiming expenses, and Analytics Plus (Established plan only)
  • Offering optional Gusto payroll 

Accountants and bookkeepers use Xero accounting software for client accounting access and their own practice management. 

Automate AP and Invoices for Xero 

AP automation software integrating with Xero provides an intelligent and automated paperless solution for supplier invoice processing in accounts payable. AI and machine learning technologies drive this intelligence. Robotic process automation uses rules to automatically perform routine repetitive tasks. 

Third-party AP automation software has seamless integration with Xero, letting users access it through the Xero online accounting software login. 

AP automation software adds capabilities to the payable process and payment processes that include:

  • Self-service supplier onboarding through a portal
  • Invoice line items and headers capture through OCR
  • 3-way or 2-way matching of invoices with purchase orders (and receiving reports)
  • Supplier validation, supplier tax form collection, and payment tracking
  • Automated coding using AI (artificial intelligence)/ ML (machine learning)
  • Automated invoice processing from supplier or vendor invoice receipt to global payment
  • Automated routing and guided approval process using rules and a button click for approval
  • Efficient large-batch payments 
  • Payment status update notifications
  • Instant accounts payable and payments reconciliations 
  • AI-driven business intelligence, analytics, and real-time dashboards

Tipalti AP automation software provides all of these features with Xero accounting software. 

Ready to maximize your company’s investment in Xero?

Get the most out of Xero with end-to-end AP automation that eliminates all of the tedious, manual AP tasks–so you can spend more time on the strategic initiatives. Dive into the details below.

Does Xero Have AP Automation? 

Although Xero calls its software accounting automation, it doesn’t have its own fully-featured AP automation software. Xero does let suppliers email invoices to their Xero email to automatically get invoice details into the accounting system for payment. 

Xero works with approved partners that are software vendors adding third-party Xero accounts payable automation integration to its accounting software. The add-on third-party AP automation software seamlessly integrates with Xero’s cloud-based accounting software. 

Top 5 AP Automation Integrations for Xero

Top AP automation integrations for Xero accounting software include:

  1. Tipalti
  2. Precoro
  3. Pipefy
  4. ProSpend 
  5. Zoho Books

#1 Tipalti

Tipalti offers a unified system of cloud-based finance automation products integrated with Xero accounting software. Tipalti software automation and employee-issued payment card products include:

  • AP automation
  • Advanced FX solutions for global payments
  • Mass payments (for publishers, creatives, advertisers, affiliates, and freelancers)
  • Employee expense reimbursement and Tipalti Card
  • Procurement automation software for purchase requisitions and POs  


Tipalti offers multi-entity and multi-currency features when Xero also provides some functionality in these areas to its SaaS plan users. 

For your company’s AP automation needs, Tipalti-Xero integration offers:

  • Self-service supplier onboarding with W-9 or W-8 collection through a supplier portal
  • AI-driven, automated invoice processing with electronic invoices received via email, OCR, or upload to the portal that eliminates manual data entry processes and paper
  • Document management
  • Over 26,000 automated payment rules to reduce errors by 66%
  • Automated global regulatory compliance, supplier validation, and supplier payment tracking for simple 1099 and 1042-S information return preparation and spend management analysis
  • Guided approvals with access to electronic invoices and matched documents for payment approval
  • Global payments to 196 countries in 120 currencies with a choice of 50 payment methods (subject to availability in the payee’s country)
  • Automated payment status notifications (saving AP team time)
  • Quick, automated payables and payment reconciliation


Tipalti Implementation Services

Tipalti Customer Testimonial

The Affiliati Network, a performance marketing company and Tipalti mass payments automation software user with Xero integration, provides this customer testimonial:

Tipalti saves us hours of processing time as well as onboarding time. This has freed up a lot of time to focus on other aspects of the business. They have also streamlined our tax compliance process. The support and training we received when we onboarded with Tipalti was exceptional.

Kent Tull, Senior Accountant, The Affiliati Network

For the tax compliance process, Kent Tull at The Affiliati Network further explains:

One of the things that attracted us to Tipalti is that they have processes that ensure we are in compliance with the upkeep of tax forms. Their system does not allow us to make a payment until these forms have been completed and verified with the IRS. Tipalti does the IRS validation for us.

 #2 Precoro

Precoro AP automation software performs automated invoice processing and invoice management using a direct integration with Xero. Precoro also offers procurement software


  • Paperless invoice processing
  • Multi-subsidiary and multi-currency
  • OCR invoice data capture for electronic accounts payable invoice processing
  • 3-way matching 
  • Automatic approval workflow
  • Real-time reporting
  • Budget controls
  • Audit trail


#3 Pipefy

Pipefy offers business process automation (BPA) software, including a product for procure-to-pay (P2P) that includes AP automation integrated with Xero and Xero Practice Manager. 


  • Accounts Payable template
  • No-code process automation
  • Teams can build any workflow
  • Create a process, database, or automation rule
  • Ask in AI-driven Pipefy to get insights for business decision-making
  • Process visualizations and orchestration


#4 ProSpend 

ProSpend (formerly expensemanager) offers cloud-based accounts payable automation software with Xero integration. ProSpend is the leading spend management software provider in Australia and New Zealand. 


  • Hyperautomation, including workflow automation
  • AI and ML technologies 
  • Human-in-The Loop service
  • Supplier invoice receipt via PDF, e-invoice, i-invoice, or image
  • OCR eliminates manual data entry
  • Sets your invoice approval limits
  • Includes compliance monitoring
  • Provides fraud control and reduces payment mistakes
  • Consists of one platform for all spend


#5 Zoho Books

Zoho provides accounting, CRM, and customer service software. Its accounting software is called Zoho Books. On its website, Zoho states that AP automation is included in its Premium Zoho Books plan (which adds a Vendor Portal). Zoho Books Elite and Ultimate plans include the functionality of Zoho Books Premium. Therefore, they also offer AP automation through a vendor portal.


Zoho Books has these AP automation features for the Premium pricing plan and above:

  • Vendor Portal
  • Validation rules
  • Bills attached to transactions
  • Vendor upload of invoices, review and status of transactions, and vendor comments in vendor portal


Which AP Automation Integration Suits Your Business? 

When your business selects an AP automation integration for Xero, determine your requirements in relation to budget. Ask these questions:

  •  Is your business a single entity or does it need to handle multi-entity payables and invoice processing?
  •  Do your suppliers include internationally-based companies requiring payment to many different countries in different currencies? 
  • How fast is your company growing? 
  • With help from sales, can you quantify the time and cost savings that the best system will provide? 
  • How good is the AP automation software provider’s customer service?

If your company selects the right AP automation software, your accounts payable team, finance team, and CFO will have more time to focus on meaningful analysis and strategic finance projects to enhance operational performance, organizational clarity, and business growth. 

Tipalti AP automation software performs end-to-end payables and invoice processing for growing, global businesses with complex multi-entity operations and provides scalability. Tipalti has an overall 98% customer retention rate and a 98% customer service satisfaction rate. To discover the best AP automation for your Xero accounting software, get in touch with Tipalti to book a demo.

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