Accounts payable automation was designed to help a business streamline workflows and, ultimately, identify cost-saving opportunities. When it comes to ROI, finance has turned functional, and the right tools will help you tighten controls, enable more efficient payment processing, and create an accurate audit trail.
Adding advanced automation saves significant time and money and allows a business to focus on strategic initiatives, over manual labor. When new complexities are introduced into a business model, payable automation software is designed to support continued growth.
In this article, we take a closer look at two top AP automation brands, Tipalti and AvidXchange, including a brief overview, features, pricing, and suggestions on which system may be the best fit for your business.
Features of Tipalti vs. AvidXchange
While Tipalti and AvidXchange both automate global payment processes, each is designed with different features and functionality. Here’s a quick peek at some of their distinct offerings:
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|---|---|---|
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Partner Onboarding |
Self-service portal with preferred payment method, currency, and payment thresholds. 26K+ rules validate payments and screen against OFAC/SDN lists. |
Everything is done manually through an AvidXchange call center. |
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Global Payments |
Pays to 196 countries in 120 currencies, including ACH, wire transfer, check, global ACH, prepaid debit, and PayPal. |
Pays to domestic only, international must be done in-house or through Netsuite integration. |
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Payment Methods |
Global ACH (eCheck), US ACH, wire, PayPal, check, and prepaid debit card |
Domestic, checks, cards, and ACH. |
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PO Management |
Integrated PO creation with Slack to accelerate approvals. |
PO creation but no Slack integration or friendly UI to increase adoption. |
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Tax Compliance |
KPMG-approved tax engine, collect W-9, W-8BEN, W-4, Form 8233, and more. Validate IRS and VAT tax ID (49 countries) against 3,000+ rules, 1099 & 1042 prep reports, e-filing |
There are no tax compliance capabilities. |
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FX Solutions |
FX conversion visibility for vendors, intercompany transfers, and hedging to reduce FX volatility risk. |
There are no FX capabilities. |
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Invoice Processing |
Header and line level OCR, Machine Learning, Managed Services, 2- & 3-Way PO matching, and auto Invoice approval. |
AvidInvoice for custom approval process, workflows, And to receive and track invoices digitally. |
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ERP Integrations |
Native API integrations with major ERPs. Seamless integration via pre-built connectors using no-code, drag-and-drop interface. |
Over 225 different types of integrations. |
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Payment Communication |
White-labeled payment status email updates and 24/7 Supplier Hub portal. |
Emails with remittance detail, but no custom experience. |
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Multi–Entity |
Multi-entity capabilities allow for customized pay and tax workflows per subsidiary. |
Can pay from different entities but no consolidated view, no tax, branding, no global payments. |
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Trusted by Global Brands |
Name brands across all verticals, like Amazon Twitch, Roblox, Zumba, GoPro, Toast, Twitter, GoDaddy, Discord, and, Canva |
Industry-specific and domestic brands in real estate, construction, and property management. Limited brands outside of these verticals |
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Fee Splitting |
Fee splitting allows you to incent payees to adopt safer, more efficient payment methods for your business. |
No fee-splitting capabilities. |
How do you future-proof your business for success?
It starts with automating everything you can!
Which Solution Works Best for Your Business (and Why)
Every business has different requirements and it’s important to choose a solution that best fits your needs, especially when scaling AP automation is on the table.
Consider these following scenarios when making a decision:
Power your entire partner payouts operations
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3,000+
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Customer Retention
When to Choose Tipalti
You require sophisticated invoice management capabilities
The Tipalti platform enables a completely touchless and paperless invoice processing workflow that involves OCR (optical character recognition) and ML (machine learning) technology to capture header and line-level details.
Expense accounts and custom fields are auto-filled based on AI and predictive smart logic. The system has 2-way and 3-way PO matching (with tolerance thresholds) that allows for automated syncing of purchase orders and GRNs.
The invoice approvals process in Tipalti looks something like this;
- Once an invoice is submitted, Tipalti’s Advanced Approval workflow starts the bill approval sequence. It will reference patterns from historical invoices, including different approval assignments per entity, location, department, etc. If a business uses specific approval rules, they can be configured in the system; even at the entity level.
- Automatic email approval notifications are sent to the appropriate parties, who can then approve, update the GL account, and send the invoice back to AP, or, they can dispute the invoice directly in the email. There’s no need to log in.
- Relevant documents can be attached by bill approvers, submitters, and the AP staff. You can also send messages and tag users with the built-in messaging feature, resulting in better collaboration and reduced processing times.
To accelerate communication, finance teams can also directly reply to messages straight in the notification emails without logging into the system.
Since 2016, Tipalti has been perfecting its invoice management solution, adding 150+ new features each year.
You struggle with tax requirements and want to strengthen controls
Tipalti solves the highly manual process of collecting tax information through digital capture. Exercise granular control over your payables and ensure data is validated before any payment is processed.
Tipalti offers advanced global tax compliance features that include:
- Collecting, validating, and managing W-9, and W-8 series forms and VAT details
- Generating 1099/1042-S preparation reports
- Calculating any necessary withholdings
- eFiling integrations and services
Tipalti’s tax compliance capabilities always meet IRS requirements, as prescribed by KPMG. The system helps to increase the security of sensitive financial data and ensure ongoing OFAC compliance. Tiipalti automatically validates supplier payment data in real-time using 26,000 global banking rules, which proactively reduces payment errors by 66%.
Your business is in hyper-growth with expanding payables needs
As your business is scaling domestically or expanding internationally, Tipalti can meet every payment need with built-in scalability and future-proof functionality.
As a business grows, new requirements and goals develop, like workflow complexities, paying global suppliers, a high volume of transactions, and handling multi-subsidiary business payables.
You also need to offer a wide range of localized payment methods and currencies to ensure everyone can get paid, whether they are in the same country or cross-border.
Tipalti can execute quick, international payments to 196 countries in 120 currencies, whereas AvidXchange has limited global payout capabilities. Tipalti supports multiple payment methods, like:
- Wire transfer
- Global ACH (eCheck)
- US ACH
- Check
- PayPal
- Prepaid debit card
Tipalti’s Multi-Entity architecture allows payers to manage a large number of entities within the same instance of Tipalti, enabling further centralized controls and in-depth financial reporting.
A business can also streamline FX conversion workflows with advanced FX features like Multi-FX, FX hedging, and Payee FX optimization.
When to Choose AvidXchange
You do not have business outside of the United States
AvidXchange has minimal global capabilities for payments outside of the United States and may not be able to pay suppliers in the countries, currencies or payment methods you require. The platform also relies on a call center to onboard new suppliers and collect their banking details. There is no tech-driven, systemic, rule-based process to validate and vet this vendor information. However, if you are a smaller organization with little to no global transaction needs, then AvidXchange may be a good fit.
You are in the real estate industry and are OK with some manual processes
AvidXchange offers specific features and modules that apply to certain industries. It works well for domestic businesses in the construction, real estate, property management, and HOA verticals. Outside of these industries, however, its solutions can be limited.
Additionally, many AvidXchange workflows are still manual, such as supplier onboarding, indexing invoices, and vetting vendor data. This business model isn’t sustainable for many industries, especially for growing organizations. It is not designed for a frictionless experience. Even tax compliance must be managed outside of the platform, which is one reason many people seek AvidXchange alternatives.
You do not have a need for supplier self-service features
AvidXchange relies on its call center for onboarding vendors, whereas Tipalti has automated supplier management. If you are OK with this manual process and already have your taxes squared away, then AvidXchange could be a good fit. However, anytime a supplier changes small banking details or has a question, they cannot help themselves via self-service.AvidXchange doesn’t offer a supplier portal, which is tough if you manage a large number of suppliers. The system does not support vendor W-9 and W-8 tax form collection or the ability to generate year-end 1099 and 1042-S prep reports. You will have to handle that outside of the AvidXchange platform.
What Does Tipalti Do?
Tipalti provides top-ranking AP automation software that integrates your entire accounts payable lifecycle and payment management needs into a single, cloud-based solution.
Tipalti Product Capabilities Overview
Tipalti is a holistic solution that addresses the entire end-to-end process of AP management, from supplier onboarding to purchase order management, tax compliance, in-depth reporting, and more.
You can expect comprehensive 2 and 3-way PO matching, intelligent approval workflows, and various payment methods to suppliers in 196 countries and 120 different currencies. The system is set up for doing global business.
The award-winning AP automation solution offers features like:
- Advanced invoice management
- Payment reconciliation and reporting
- Multi-entity capabilities
- Self-service supplier portal
- Corporate cards
The Tipalti solution provides granular control over the entire payable process to protect your company from fraud, improve business efficiency, and minimize headcount.
The platform also offers advanced FX solutions, like hedging and intercompany transfers, and easily integrates with ERPs and accounting systems like Oracle NetSuite, Microsoft Dynamics ERPs, Xero, and these other top brands including:
- Sage Intacct and Sage ERPs
- QuickBooks
- SAP ERPs
- Oracle ERP
- Workday
Setting up the Tipalti system is simple. Implementation can be completed in as little as 30 days.
Tipalti Pricing
Tipalti uses a SaaS subscription pricing model. You can upgrade from the basic plan, and add advanced functionality, like multi-entity payables, as your organization grows.
What Does AvidXchange Do?
AvidXchange provides an accounts payable and payment processing solution that includes AP automation, payment services, and invoice management. The system also provides customers access to a network of mid market suppliers, with over 965,000 vendors across different industries.
AvidXchange Product Capabilities Overview
AvidXchange is recognized as an industry leader and deals with 965,000+ suppliers in the United States. Expect features like:
- Electronic invoice management
- Automation of the purchase-to-pay process
- Automated payments and approval process
- ACH, mobile (iPhone or Android), and online payment processing
- Cash flow management
Additionally, AvidXchange offers businesses a multitude of integrations. The product is designed to seamlessly integrate with 220+ popular ERPs and accounting software systems. It connects to systems like:
- QuickBooks Online
- Sage Intacct
- MRI Software
- NetSuite
- Rent Manager
AvidXchange Pricing
AvidXchange doesn’t publish pricing on its site. Every package is a custom quote. Some third-party user review sites state an average cost of $5,000 for a 45-day implementation.
The AvidXchange website advises you to “refer to your Supplier Services Agreement with AvidXchange for current and applicable fees.”
What Our Customers Say
“It’s almost like giving the keys back to the vendors—they have a lot of freedom and visibility into the process. It was a little shocking that this could even be this visible to them. It’s enabled vendors to understand the process and to be able to see payments directly. Streamlining that process gives them the freedom to manage their own business.”
Katelyn Stephens, CPA, Senior Accountant at Revalize
“Tipalti’s PO matching review and customizable fields are critical to our operations. Not many systems have that complex integration and can directly sync back to NetSuite.”
David Wong, Head of Finance, Zipline
“Without Tipalti, we’d have 10 people in AP as opposed to the two people we have right now. And we can still close on the second day of the month.”
Flora-Rica Abiva, Senior Accounting Manager, Zola
Save Time and Money with Accounts Payable Automation
Tipalti’s recent survey with global accounts payable teams (based on IFOL research) revealed that nearly 50% of the participants spend over five days each month manually processing invoices.
We also found that 41% of those surveyed plan to automate AP processes within a year. Using AP technology helps a business shift the focus from manual tasks to strategic finance. This contributes value, helps to reduce costs, and stimulates business growth. It also ensures you have a precise audit trail to protect the business.
Although Tipalti and AvidXchange both offer efficient and user-friendly AP automation, this is Tipalti’s core competency. Consider an in-depth evaluation of both Tipalti and AvidXchange before deciding which solution is the best fit for your budget and needs. Not only can Tipalti handle the requirements of any sized company, it’s also built to scale as you grow. Want to know more? Click here to get started today!
