The Best Xero AP Automation Solutions Overview

Xero AP automation with third-party integration adds efficiency by eliminating manual tasks and lets your company reduce hiring needs.

Xero AP automation is available as third-party add-on software with seamless Xero integration. Your business 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 for 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 at 59% are small (1000 employees), and 33% are medium-sized. 34% of Xero customers are in United Kingdom, 22% are in United States and 19% are in Australia

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
  • Submitting VAT returns to HMRC
  • Generating UK automatic CIS (Construction Industry Scheme) calculations and reports (as percentage deductions for registered and unregistered subcontractors)
  • Reconciling bank transactions, using a bank feed
  • Providing short-term cash flow and business snapshot
  • Reconciling bulk transactions
  • Using multiple currencies (Premium & Ultimate plans) 
  • Tracking projects, claiming expenses, and Analytics Plus (included in Ultimate plans only with paid options in other plans)
  • Offering optional payroll, with inclusion in Ultimate plan

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

To maximise your investment in Xero accounting software, you’ll need to add on AP automation software.

Automate AP and Invoices for Xero 

AP automation for 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 VAT ID 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. Lightyear
  4. Quadient (by Beanworks)
  5. Nook

#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 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.


For the tax compliance process, Kent Tull at The Affiliate 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.

 #2 Precoro

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



#3 Lightyear

Lightyear is a Procurement and Accounts Payable automation platform with Xero integration. 



#4 Quadient (by Beanworks)

Quadient AP by Beanworks offers cloud-based accounts payable automation with Xero integration, consisting of four products: Invoices, Payments, Expenses, and Purchase Orders. The following features require using multiple Quadient AP automation products. 



#5 Nook

Nook is an invoice payment platform with AP automation that integrates with Xero ERP.  



Which AP Automation Integration Suits Your Business? 

When your business performs a software evaluation to find the right AP automation software 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 for the end-to-end AP process, 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 to book a demo.

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