Best Invoice Automation Software for AP Efficiency in 2025

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Invoice automation software for processing supplier invoices in accounts payable is essential for streamlining business processes, thereby eliminating manual tasks. With automated invoice processing software, businesses gain efficiency, reduce errors and fraud risks, and achieve real-time visibility to control spending.

This guide focuses on selecting the best invoice automation software, providing comparisons of five invoice automation solutions to consider during your company’s software evaluation process.

Top Signs It’s Time to Buy Invoice Automation Software

How do you know it’s time to purchase new tools? Here are a few scenarios:

1. Time-Consuming and Error-Prone Manual Processes

If your business is spending too much time operating a paper-based system requiring manual data entry, it’s time to buy invoice automation software. Your invoice processing cost for accounts payable is too high. Your business may be incurring unnecessary costs due to fraudulent, duplicate, or erroneous invoices that aren’t adequately checked before payment.

2. Delays in Processing and Recording Supplier Invoices in Accounts Payable

When supplier invoices are not immediately entered into the system, your company doesn’t know its actual cash requirements for accounts payable and can’t properly perform cash flow forecasting.

The financial statements may be incorrect due to unrecorded payables invoices if your accounting staff does not prepare a time-consuming monthly spreadsheet and journal entry for recording these accounts payable invoices. Your company may miss early payment discount opportunities and incur late payment fees.

3. Vendor Shipment Cutoffs Due to Late Payments

When your company doesn’t get adequate financing to make timely payments to suppliers, they may cut off goods shipments to your company until payment is received. This interrupts production for manufacturers and the sales stream for retailers with stockouts.

4. Frequent Hiring or Overtime to Handle the Accounts Payable Workload

A manual system lacks the scalability necessary to handle increased invoice volume as your business expands. As bottlenecks occur and the staff needs to resolve problem invoices and respond to interruptions from supplier late payment inquiries, your AP team may be working overtime and becoming frustrated, or your business may be increasing its headcount.

5. Lack of Real-Time Spend Visibility

Without real-time supplier invoice recording, your business can’t properly analyze its spending by supplier and category to identify opportunities for cost reduction.

6. Manual Reconciliation that Delays the Monthly Close

When your accounting staff needs to manually reconcile payments using spreadsheets, it delays the monthly close. Your accounting staff becomes frustrated because they only have time in their job for completing basic accounting rather than participating in value-adding projects to improve business results.

7. Year-End Supplier Tax Form Collection and Payment Tracking Projects

If supplier W-9 or W-8 series tax forms aren’t collected before the first payment is made, it requires extra follow-up time at calendar year-end before 1099 forms are due. Your accounting staff may need to prepare spreadsheets to track spending amounts by vendor for the year.

What is Invoice Automation Software?

Invoice automation software is used by businesses to efficiently process invoices, digitize, and streamline business processes related to receiving and paying invoices from suppliers.

The functions of invoice automation software for accounts payable include:

Supplier onboarding and validation, including W-9/W-8 tax form collection
Invoice capture via OCR and integrated e-invoicing
Automated invoice verification using business rules and 2-/3-way PO matching
Approval workflows with access to line-item details and supporting documents
Global payments with local currency support and multiple payment methods
Regulatory and tax compliance, including sanctions screening and simplified 1099 prep
Automated reconciliation of payments to ERP/accounting systems
Real-time payment status updates for suppliers
AI-driven spend analytics for better visibility and forecasting

Benefits of using invoice automation software include:

Increased accuracy of supplier information
Elimination of manual data entry and paper-based systems
Error and fraud risk detection
Timely invoice processing, to assess current spend and cash requirements and take early payment discounts
Reduced AP staff time for handling supplier invoice payment status inquiries
More cost-effective and automated global payments and currency conversion
Cost reductions from fewer hires, early payment discounts, smarter spend decisions, and strategic focus
Accelerated financial close

Must-Have Features in Modern Invoice Automation Software

Invoice automation software for accounts payable must provide these essential features:

Supplier Portal: Self-service supplier onboarding through a portal enables the collection of W-9 or W-8 forms before the first payment, allows for the selection of a payment method, enhances data accuracy, and provides automated payment status notifications. It enables vendor management for vendor invoice processing.
Invoice Data Capture: AI-powered invoice data capture, which utilizes AI, optical character recognition (OCR) technology, and machine learning in AP automation, extracts data from files in accepted formats by heading and line item. Automated invoice processing systems with invoice data capture replace inefficient, manual payables systems that are prone to human error and rely on paper invoices and supporting documents, as well as time-consuming manual data entry.
Automated Workflows: Automation for end-to-end AP processes includes supplier validation, invoice verification rules, 3-way or 2-way invoice matching, invoice approval process routing, global regulatory compliance, global payments, and instant payment reconciliation. It uses automated business rules to detect and flag exceptions.
Global Accounts Payable: The invoice automation software must provide global functionality, with multiple EFT payment methods to numerous countries in local currencies, currency conversion, and automated global regulatory compliance. Optionally, companies should have access to payables hedging software to manage currency fluctuations between the invoice date and payment date.
System Integration: The invoice automation software should integrate seamlessly via API or flat file integration with your existing ERP system or accounting software, synchronizing data between systems. Real-time and multi-entity ERP software functionality should enable these capabilities in AP automation software.
Controls and Security: Enterprise-grade security and secure payment processing capabilities in invoice automation software enable companies to mitigate risks to their business systems and payments. An audit trail enhances internal control.
Reporting and Analytics: Timely invoice management and reporting, combined with AI-driven analytics, enhance business intelligence relating to spend management and decision-making for cost reduction.
Scalability: Invoice automation software for accounts payable must be scalable to handle business growth, added complexity, and more entities. AP automation scalability enables the processing of a higher invoice volume and payment in large batches, with reduced hiring needs.

Quick Overview of the Top Invoice Automation Tools

#	Solution	Best For	Pricing	Key Features
1	Tipalti	SMBs, mid-market, and enterprises	$$	Global payables, tax compliance, AI-based OCR, PO matching, ERP sync, multi-entity support.
2	Brex	Startups and small businesses needing only basic features	$	Invoice capture, email payment link, 2-way matching, email approvals.
3	BILL	SMBs with a domestic supply chain	$	Invoice splitting, duplicate detection, 1099 flagging, PO matching, mobile app.
4	Concur Invoice	SMBs and enterprise companies using Concur Travel and Expense software products	$$	OCR capture, 2-/3-way PO matching, approval routing, vendor API/manual entry, mobile app.
5	Airbase	SMBs and enterprise companies not collecting W-8 forms	$$	OCR (no ML), 2-/3-way matching with NetSuite, W-9/TIN validation, GL coding, mobile/email approvals.

Breaking Down the Best Invoice Automation Software Platforms

To select the best invoice automation software for accounts payable, consider which of these AP automation solutions best meets your company’s needs and budget and provides scalability for growth.

1. Tipalti

Tipalti AP automation software is a scalable solution that automates end-to-end accounts payable processes, integrating seamlessly with your ERP or accounting system. Tipalti spans from self-service supplier onboarding to digital invoice capture (with AI Smart Scan and a managed services team to correct exceptions), supplier and invoice validation and verification, 3-way or 2-way matching, automated coding, invoice approval routing with communications and notifications, global payments, and instant payment reconciliation.

Get real-time visibility into spending and cash flow requirements with Ask Tipalti AI^SM for spend queries.

Tipalti’s AP automation software can be optionally combined with other Tipalti unified finance automation platform products for expense management and advanced foreign exchange (FX). Mutli-FX and Tipalti Hedging products centralize global payments for all subsidiaries through a virtual global payment account or provide payables hedging functionality.
Tipalti also offers mass payments software for payouts and procurement software with functionality from purchase requisition intake to automatic purchase order creation.

Best For

Global Payments, tax compliance, and end-to-end payables with scalability

Capability	Tipalti Value
Global AP	Pays to 200+ countries, in 120 currencies, using 50+ methods.
Multi-Entity	Offers total transparency and visibility with a complete separation of workflows.
Tax Compliance	Global tax compliance with 62-country validation capabilities and over 3,000 rules.
ERP Integration	In-depth ERP integrations with key brands like NetSuite, Intacct, Acumatica, SAP, and more.
Controls and Security	High-level security features with SOC 2, OFAC, AML, and detailed audit trails.
PO Matching and Automation	Advanced purchase order matching using AI tools like Smart Scan and auto-routing.

Trusted by Finance Leaders. Backed by Industry Awards.

Tipalti is top-ranked on review sites like G2 and Capterra. Finance professionals like the capabilities of Tipalti’s payables platform, including its ease of use, scalability, global payments functionality, and advanced automation tools.

These awards indicate Tipalti’s capabilities, innovation, and reputational leadership in AP automation.

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See what our customers are saying

Our finance team wouldn’t have kept up with the pace at which the company was growing without the FinOps solutions that we have in place today.

Byron Whitman

Corporate Controller, NEXT

With Tipalti, our operations have become very quiet—which is good because it means we’re happy. Checks used to go missing, and people would be frustrated with the manual tasks, but now the process is seamless. I don’t hear anything anymore, which I’d say is a win.

David Metz

EVP of Finance, Elite Staffing

Since signing on with Tipalti, we have tripled our production. Tipalti listened to our feedback and made improvements, and now we honestly love the platform.

Molly Schwab

Accounting Specialist, Endera

What Sets Tipalti Apart from Other Invoice Automation Tools

Tipalti’s AP automation software offers end-to-end invoice automation that eliminates manual processes, accelerates month-end close, and scales with your business.

Key differentiators include:

Self-service supplier onboarding via a white-labeled portal with automatic payment status updates and upfront tax form collection (W-9/W-8, TIN matching, calculated withholdings, 1099/1042-S reports, or optional 1099 e-filing).
AI-driven invoice capture with OCR and machine learning for header- and line-level data, plus automated GL coding.
Smart PO matching with tolerances for 2-way or 3-way matching and 26,000+ automated rules for invoice verification.
Multi-entity payables management with visibility by entity and centralized control across business units and currencies.
ERP integrations with NetSuite, Microsoft Dynamics 365, Sage Intacct, QuickBooks, Acumatica, and more, enabling real-time sync and instant payment reconciliation.
Secure global payments through Tipalti’s licensed MSB to 200+ countries in 120 currencies with 50+ payment methods.
Global tax and regulatory compliance, powered by a KPMG-approved tax engine and built-in automation.
Scalable architecture that supports high invoice volumes and large batches across growing finance organizations.
Optional add-ons like advanced FX, hedging, procurement, and expense management.
Tipalti AI^SM for real-time spend insights and intelligent business query handling.

Finance teams and CFOs rely on Tipalti to reduce costs, increase accuracy, and achieve true payables transformation at scale.

Invest in Invoice Automation Software That Scales with You

Invoice automation software must meet the evolving needs of your growing company as it expands through internal growth and mergers and acquisitions (M&A). Scalability for global growth is a crucial capability that Tipalti AP automation provides.