The Real Problem with ERPs and How Companies Are Solving It

For many organizations, few initiatives feel as consequential (or as daunting) as implementing a new ERP. Whether it’s replacing a legacy system or migrating to a more robust platform, ERP projects often sit at the top of the finance and IT priority list.

And for good reason. ERPs promise centralized data, standardized processes, and a single source of truth across finance, procurement, inventory, and beyond.

But as many finance leaders discover after go-live, an ERP alone doesn’t always deliver the operational efficiency they were expecting—especially when it comes to accounts payable.

Why ERPs Fall Short on Critical Finance Workflows Like AP

ERPs are built to do many things well. They’re designed as broad, horizontal platforms meant to serve multiple departments with a shared foundation. What they aren’t designed to do is deeply optimize specialized workflows, like accounts payable.

Most ERPs can support basic invoice processing, but when AP complexity increases (as it inevitably does with growth), the cracks start to show. Finance teams quickly run into limitations around:

• Automated invoice capture and advanced OCR
• Vendor self-service portals
• Multi-currency and cross-border payments
• Purchase order matching and exception handling

Two- and three-way matching, in particular, often requires manual intervention when discrepancies arise between invoices, purchase orders, and receipts. What starts as a manageable workaround becomes a recurring bottleneck—slowing close cycles, increasing error risk, and pulling finance teams into tactical work they shouldn’t be doing.

Customizing ERPs to handle these complexities is possible, but it’s rarely simple. It often requires costly development, ongoing IT support, or third-party consultants, making AP optimization an expensive endeavor.

How AP and Payments Automation Complement ERP Investments

This is where purpose-built AP and payments solutions come in, not to replace your ERP, but to extend it.

Modern AP automation platforms are designed specifically for the realities of high-volume, high-complexity payments. They offer flexible, configurable workflows that allow finance teams to tailor invoice routing, approvals, and exception handling to how the business actually operates. 

More importantly, when tightly integrated with an ERP, these solutions enable true end-to-end automation. Invoices, purchase orders, vendor data, and payment information flow seamlessly between systems—without manual re-entry. From invoice capture and validation to approvals, payments, and reconciliation, the entire AP lifecycle is automated while the ERP remains the main system of record.

The result is not just efficiency, but control. With a streamlined ERP integration, every action—invoices, approvals, payments—is automatically logged and auditable across both systems. That foundation delivers meaningful, tangible outcomes like:

• Faster processing times that reduce invoice backlogs and enable early payment discounts
• Stronger vendor relationships that drive transparent and predictable payment cycles
• Lower fraud risk and fewer errors that enforce internal controls and compliance

Real-World Companies that Scaled with ERP-Integrated AP Automation

DataCore Streamlined Global Scale and Accelerated Growth

As DataCore expanded its international presence, accounts payable quickly became more complex. Cross-border currency management, multi-entity compliance, and regional operations demanded a more scalable approach. DataCore needed a centralized AP system that could integrate seamlessly with NetSuite and support global growth.

With Tipalti integrated into NetSuite, DataCore streamlined multi-entity AP operations across the US, UK, France, and Germany. According to Rinki Naicker, Global Accounts Payable Lead at DataCore, the integration enabled the team to manage invoices in a single platform, accelerate processing, and simplify approvals and payments—delivering greater efficiency and control as the business scaled globally.

Zola Scaled Payment Operations and Invoice Processing

As Zola rapidly scaled its eCommerce marketplace, manual approvals and payments quickly became a bottleneck. Managing a growing volume of transactions by hand was no longer sustainable, and expanding the finance team to keep pace wasn’t an option. Zola needed a scalable AP infrastructure that could support growth without increasing headcount.

By automating its end-to-end AP workflow with Tipalti—from vendor onboarding through invoice processing and payments—and integrating directly with Sage Intacct, Zola streamlined approvals, accelerated processing, and automated payment reconciliation. According to Zola’s accounting and AP team, the integration enabled efficient scaling while maintaining a lean, two-person finance team.

Brooklinen Modernized Its Financial Operations

As Brooklinen’s luxury bedsheet brand gained rapid traction, manual accounts payable processes struggled to keep up. Reconciling payments by hand in QuickBooks Online created delays, and nearly 30% of vendor tax forms were being missed—introducing risk and unnecessary inefficiencies. Brooklinen needed a more reliable, automated approach to support continued growth.

By implementing Tipalti, Brooklinen automated vendor onboarding, tax compliance, invoice processing, and vendor payments within a centralized hub. With instant reconciliation integrated into QuickBooks Online, the AP team eliminated an entire week of manual processing each month. As Shawna Stewart, Staff Accountant at Brooklinen, shared, the integration strengthened financial controls while providing real-time visibility into expenses—allowing the team to operate with greater accuracy and confidence as the business scaled.

Dragoman Streamlined Global Payments

Operating a global network of freelancers across more than 100 languages and countries, Dragoman faced growing complexity in managing payments across multiple currencies and time zones. Manual processes made it increasingly difficult to scale efficiently while maintaining accuracy and control.

By automating payment operations with Tipalti and integrating seamlessly with its accounting software, Xero, Dragoman built a flexible, scalable payments infrastructure. The integration simplified global payments and supported significant business growth—contributing to a 4x increase in revenue and an 8x increase in net profit. As Umit Ozaydin, CEO at Dragoman, shared, “Tipalti integrates seamlessly with our systems, giving us the efficiency we needed to grow without increasing headcount.”

What to Look for in an AP and Payments Solution

Not all AP solutions are created equal. To truly complement your ERP, your AP platform should offer:

• API-based integrations that enable real-time data sync without custom development
• End-to-end automation, from invoice capture and data extraction to approvals, matching, payments, and reconciliation
• Scalability, supporting growth in transaction volume, vendors, and geographies
• Real-time reporting and analytics for better visibility and decision-making
• Built-in compliance and security controls to reduce fraud risk
• Vendor self-service portals that improve communication while reducing manual workload

Turning Your ERP Investment into an Operational Advantage

ERPs remain a critical foundation for modern finance organizations, but they aren’t designed to solve every operational challenge on their own.

By pairing an ERP with a purpose-built AP and payments solution, organizations can eliminate manual work, reduce risk, and unlock the efficiency they expected from their ERP investment in the first place. The result isn’t just a smoother AP process. It’s a finance function positioned to scale with confidence.