The Top Alternatives to AvidXchange

If you run a hyper-growth business, whether scaling rapidly domestically or expanding internationally, you need a payable solution with built-in scalability to help future-proof your payable operations. As your company grows, your AP workflow complexities increase, including paying global suppliers, handling multi-subsidiary business payables, and processing many payments. You also need to offer a vast range of localized payment methods to pay your domestic and global suppliers in their preferred payment methods and local currencies.

Tipalti’s end-to-end accounts payable platform future proofs your payables operations, so you don’t have to keep throwing more resources as you grow. Tipalti’s Multi-Entity capability enables payers to manage a large number of entities within the same instance of Tipalti, enabling centralized controls and financial reporting.

Tipalti’s advanced capabilities include KPMG-approved tax capability for IRS compliance, collecting and validating IRS and maintaining W-9, W-8 series forms, VAT details, generating 1099 / 1042-S preparation reports, and calculating any necessary withholdings. 

While AvidXchange has limited international payout capability, Tipalti can execute fast global payments to 196 countries in 120 currencies. Payments can be made in multiple international payment methods—global ACH (eCheck), wire transfer, PayPal, and prepaid debit card. You can also streamline your FX conversation workflow with advanced FX capabilities such as Multi-FX, FX hedging, and Payee FX optimization.

Accounts payable processing comes with many potential inefficiencies that increase the workload of your AP team, as manual operations increase complexity and slow down the financial close process.

Tipalti makes AP processes invisible by cutting out the manual work and wiping out 80% of the workload managing payables, so you can align your resources to focus on mission-critical activities instead of back-office financial operations. Tipalti enables a complete touchless invoice processing workflow with machine learning (ML) powered OCR technology that captures the header and line-level details. 2-way and 3-way PO matching allow automated syncing of POs and GDRs from your ERP to Tipalti to complete the PO match flow, helping eliminate overspending and strengthen financial controls.

While AvidXchange relies on its call center to manually onboard suppliers with phone calls, Tipalti helps streamline the supplier onboarding process with a self-service, white-labeled portal, enabling faster, more accurate payee data collection and verification. Provide visibility into payment status via a 24×7 multi-language partner portal and proactive automatic payment status emails. Tipalti automatically validates supplier payment data in real-time using 26,000 global banking rules to eliminate payment errors proactively.

You can accelerate financial close by more than 25% as payment methods, currencies, subsidiaries, and geographies are combined and reconciled in real-time for instant visibility. Detailed transaction and reconciliation reports are integrated with your ERP system to provide a consolidated view of all payable accounts.

Since AP involves direct access to cash reserves, it’s critical to institute proper controls and governance. Tax compliance is another crucial aspect as manually collecting and validating tax forms from suppliers is fraught with legal and financial risk.

Tipalti provides granular controls over payables and payment operations to increase the security of sensitive financial data, ensure ongoing OFAC compliance, and improve management oversight to key AP processes. Tipalti enables you to strengthen control with built-in Artificial Intelligence, and Machine Learning constantly improves performance for invoices approvals routing, including the ability to incorporate Fixed Approval Roles.

Tipalti solves the complex, highly-manual process of collecting tax information through digital capture directly during the onboarding flow, ensuring information is validated before payment is ever processed. Help ensure IRS tax compliance with KPMG-approved tax form data validation and withholding calculations. Collect W-9, W-8 tax forms, validate IRS and VAT tax IDs, automatically calculate withholdings and generate 1099 / 1042-S tax prep reports with automated filing.

AvidXchange works well for small to midsize domestic-only businesses in real estate, construction, property management, and HOAs, but the capabilities are limited outside of these industries.

Many of AvidXchange’s workflows are still manual on the back-end, such as onboarding suppliers, indexing invoices, and vetting suppliers’ banking and payment information. This isn’t a sustainable and scalable model, especially for growing companies, and it won’t deliver the frictionless payables experience your suppliers and finance team want.

Also, AvidXchange doesn’t have built-in tax compliance capabilities and tax rules validation to help ensure IRS compliance. You need to manage the vendor tax compliance process outside of AvidXchange.

AvidXchange has minimal global capabilities to help support your operations outside of the US. 

AvidXchange relies on its call center to onboard suppliers to get your suppliers’ banking details. There is no systematic, technology-driven, rule-based process to validate the supplier’s banking details, especially for international vendors, to help reduce payment errors proactively. 

AvidXchange offers limited multi-entity capabilities and does not support multi-entity branded communication. With AvidXchange, you won’t gain a consolidated view across all your entities’ payables. 

International payment options are minimal. AvidXchange only offers the virtual card option for global payments but does not support payment methods that global payees might demand, such as PayPal, Global ACH, and wire transfer.

AvidXchange relies on its call center to onboard and manages suppliers while do not allow self-service. Suppliers must contact AvidXchange to change banking details and contact you, the payer, to change address details. It is not a scalable solution if you manage a large number of vendors.

AvidXchange does not support vendor W-8 and W9 tax form collection and the ability to generate year-end 1099 and 1042-S prep reports. So you will need to manage vendor tax compliance outside of AvidXchange.

Lastly, there is no built-in fee-splitting option to help your payees to adopt safer, lower cost, and more efficient payment methods and reduce check usage.