AP Automation

6 Best AP automation software options for 2023

As businesses gear up for increased technological advancements in 2023, we can expect accounts payable automation to remain a hot topic.

Bella Ward

10 min to read

Introduction

As businesses gear up for increased technological advancements in 2023, we can expect accounts payable automation to remain a hot topic.

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Growth, digitization and efficiency are the key areas of focus for the year as outlined by Deloittes CFO Signal Survey [1]

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Another survey by McKinsey noted that the adoption of digital technologies had moved forward 3 to 7 years since 2021. The adoption rate will increase exponentially over the next decade as artificial intelligence is used more widely, forcing businesses to adapt their accounts payable process.

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Getting a head start in 2023 will benefit your business in the years to come. Here we review software that can help transition your business to accounts payable outsourcing and automation.

Accounts Payable Trends forecast for 2023

- A reduction in manual accounting tasks and paper documents

A study by APQC found that 50% of organizations still use paper-driven business payment processes. It is encouraging that many companies are moving towards automation, but it still shows that half of all accounts payable departments are not. This means the market for accounts payable automation solutions remains wide open.

- A drive to improve processing efficiency will become more urgent

The use of electronic invoices and some form of data extraction has increased invoicing processing efficiencies between 7-23% since 2019. There is scope for AP software to further increase this number in 2023.

- Invoice processing cost will be reduced by introducing automation

An interesting figure that emerged is the increase in cost per invoice processed between 2019 and 2022. The figure increased from $5.83 to $6.50. This directly resulted from increased labor needed to process larger invoice volumes effectively. This can only be reduced with automation.

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Organizations are doing a lot to keep up with increased demands and processing costs. However, an AP automation software solution like Payvy will help you to work smarter, not harder, by taking your invoice processing to new levels.

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Common Accounts Payable Software features

Accounts payable automation software is designed to streamline and automate the process of paying vendor invoices and managing vendor relationships.

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It can help businesses save time and reduce the risk of errors by automating tasks such as invoice processing, payment approvals, and vendor management. Some common features of AP automation software include:

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Electronic invoice submission: Allows vendors to submit invoices electronically, reducing the risk of errors and speeding up the payment process.
Invoice data extraction and validation: Gets important invoice data into your accounting system. Next, it checks invoices for accuracy and completeness to ensure readiness for payment.
Approval workflow: This enables the set up of a defined approval workflow, ensuring that payments are properly authorized and reducing the risk of fraud.
Payment processing: Allows businesses to schedule and process payments to vendors electronically. This saves time and reduces the rate of errors.
Vendor management: Enables vendor information and relationships management, including tracking vendor performance and negotiating payment terms.
Expense management: Tracks and manages expenses, including employee expense reports, vendor invoices, and credit card charges.
Reporting and analytics: This feature provides insights into accounts payable processes, including payment trends and vendor performance.
Integration with other systems: Businesses can integrate their AP automation software with other systems, such as their accounting software or enterprise resource planning (ERP) system.
Mobile access: This feature allows businesses to access their automated accounts payable software from any device, including smartphones and tablets.

Best AP Automation software snapshot

For more comprehensive information, you can find a breakdown of each company after the snapshot.

- Small business focus

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Bill.com

Meliopayments.com

Entry Level - Pricing

$45 a month (Essentials package)

Free

Features

Batch processing, payment scheduling, automated workflow, self-service portals and mobile app, invoice payment, matching, tracking and reporting, notification of overdue payments, prevention of duplicate payments

Integration

Wide range of accounting software and ERP systems

Quickbooks Online

Security

PCI, P2PE, SSL Encryption, SOC, SOX

PCI, P2PE, SSL Encryption, SOC

Cloud storage

Yes

Interface

SaaS/Web/Cloud/Mobile

Customer Support

Yes

Email and live chat

Industries

Accounting firms, NPO

Accounting, Marketing

- Medium size business focus

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Stampli.com

Airbase.com

Entry-Level Pricing

Contact provider

Free

Features

Expense reporting, Employee re-imbursement, invoice creation and delivery, mobile receipt capture, workflow, user access and management, batch processing, vendor self-service, forecasts, invoice verification, fraud management, Cloud based, Smart AP Automation, Intuitive dashboard, 365 visibility, direct pay, , seamless integration, stampli insights

Integration

MS Dynamics, Oracle, Sage, Quickbooks, payment gateways

Oracle, Sage, Quickbooks, payment gateways

Security

PCI, P2PE, SSL Encryption, SOC, SOX

Cloud storage

Yes

Interface

SaaS/Web/Cloud/Mobile

Customer Support

E-mail, mobile, live chat

Email, mobile, live chat

Industries

Accounting, Healthcare, Construction

Computer software, IT, Financial services

- Large Enterprise business focus

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Celonis

MHC Automation Software

Entry-Level Pricing

Contact Service Provider

Contact service provider

Features

Meta-data, OCR scanning, Form creation, portals, process automation, business intelligence, document approval, user access and management, single sign on, purchasing, invoicing, full invoice processing, audit trails, fraud management, process routing

Integration

ERP

Security

PCI, P2PE, SSL Encryption, SOC, SOX

Cloud storage

Yes

Interface

Web, mobile, portal

Customer Support

Email, mobile, live chat

Industries

IT, oil and energy

Healthcare, government

Get more information here:

Bill.com

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BILL is headquartered in San Jose, California. Their automated solutions help SMBs simplify and control their finances, so they can confidently manage their businesses. Businesses trust BILL solutions to manage financial workflows, including payables, receivables and spend and expense management.

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With BILL, there is a network of millions of members through which ACH transfers, debit and credit payments and wire transfers can be made.

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BILL is a trusted partner of leading U.S. financial institutions, accounting firms, and accounting software providers.

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The company has received several patents for its AP automation technology, including electronic invoicing and payment processing. In 2020, Bill.com announced the acquisition of Divvy, a business expense management software, to expand its offerings and better serve small and medium-sized businesses.

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Accolades: Top 20 fastest growing software 2022, Top 20 Most popular software 2022

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Customers:: Quicken, TED, Galileo, Wag!

Melio

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Based in New York, Melio created a B2B payment platform that saves money and improves cash flow. The software is suitable for small to medium-sized businesses and is designed to be user-friendly with a simple interface and intuitive navigation.

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Melio is a free vendor/bill payment tool that maximizes cash flow. Pay vendor bills using a bank transfer, debit card, or credit card. Melio has a fee-per-transaction structure. A bank transfer, receiving payment and receiving a card payment is free whilst card processing attracts a 2.9% fee.

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Melio automatically syncs with your QuickBooks and even mails checks on your behalf.

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Accolades: Melio has been named to the Forbes Fintech 50 list and joined Capital One to provide a fully integrated accounts payable solution for small business in 2022.

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Customers:: Radical Woman, Silver Sound, Aora Cargo and Janel Group

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Stampli

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Based in Mountainview, California, Stampli offers B2B and ACH payments. They offer a complete accounts payable automation service.

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Stampli is a complete Accounts Payable (AP) automation platform that brings together accounts payable communications, documentation, corporate cards, and payments all in one place, allowing AP to have full control and visibility over corporate spending.

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Stampli’s AI, Billy the Bot, learns an organization’s unique patterns to simplify GL coding, automate approval notifications, identify duplicate invoices, and reduce time spent on manual data entry.

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Their flexible platform seamlessly fits into existing processes and integrates with financial systems.

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Some potential benefits of Stampli AP automation software include:

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Advanced invoice matching: Stampli's software includes advanced invoice matching capabilities, which can help businesses to reduce errors and improve efficiency by automatically matching invoices to purchase orders and other supporting documentation.
Collaboration: Stampli's software includes tools for collaboration and communication, allowing teams to work together to resolve invoice issues and track the status of invoices in real time.
Customization: Stampli's software can be customized to meet the specific needs of different businesses, allowing them to tailor the software to their specific processes and requirements.

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Accolades: Stampli led the way in the G2 Grid for automation in the Spring of 2022, with a #1 rating in customer satisfaction, useability, implementation and results.

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Customers:: Beyer Mechanical, Kiva confections, Techstars and Renova Energy

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Airbase

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Airbase is the #1 and only comprehensive spend management platform that scales with companies from startup to IPO and beyond.

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It combines three products — accounts payable, an advanced corporate card program, and employee expense reimbursements — into one system.

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Automated accounting and approval workflows provide visibility and control, a faster close, and real-time reporting. Some benefits companies would get from using this software:

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Payment processing: Airbase's software can integrate with a range of payment systems, allowing businesses to automate the process of paying invoices and tracking payments.
Vendor management: Airbase's software can help businesses to manage vendor relationships by providing tools for tracking vendor performance, negotiating discounts, and analyzing spend.
Financial reporting: Airbase's software can generate reports and analytics to help businesses understand their financial performance and make better-informed decisions

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Accolades: Leader mid-market and enterprise in AP automation 2022

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Customers: Segment, Roadster, Tatcha, Everlaw

Celonis

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Based in Germany, Munich and New York, Celonis provide a fully-fledged process management system. The average company runs its processes over multiple systems that don’t communicate. Celonis aims to change that by revealing inefficiencies and fixing them.

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Celonis is a software company that provides analytics and visualization tools for businesses to help them optimize their operations and improve their performance. Its software is designed to analyze data from various sources, including business systems, applications, and sensors, to provide insights into key performance indicators (KPIs) and other important metrics.

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Some of the key features of Celonis software include:

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Data integration: Connect to and analyze data from a wide range of sources, including CRM systems, ERP systems, and marketing automation platforms.
Data visualization: Provides a range of visualizations, including dashboards, charts, and maps, to help users understand and analyze data more effectively.
Predictive analytics: Uses machine learning algorithms to predict future trends and behaviors, helping businesses to make better decisions and take proactive actions.
Collaboration: Allows users to share insights and collaborate with others within the organization, helping to drive better decision-making and improve overall performance.

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Overall, Celonis software is designed to help businesses make data-driven decisions and optimize their operations by providing insights into key performance indicators and other important metrics.

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Accolades: Top rated by TrustRadius, Munich’s distinguished companies 2021, Entrepreneurs of Excellence Award

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Customers: HP, Vodafone, GE Healthcare, Dell

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MHC Software

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MHS AP Automation software is designed to automate and streamline the accounts payable (AP) process for businesses. The AP process involves the management and payment of bills and invoices from vendors and suppliers that can be time-consuming and error-prone if done manually.

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AP automation software helps businesses to automate this process by providing tools for capturing and digitizing invoices, approving and routing invoices for payment, and managing vendor relationships.

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This can help to improve efficiency, reduce the risk of errors, and improve the accuracy of financial reporting.

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Overall, MHS AP Automation software is designed to help businesses streamline and optimize their accounts payable process, improving efficiency and reducing the risk of errors.

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Accolades: Highest user adoption 2022, Leader among workflow and AP Automation 2022, Easiest to use software - enterprise 2022

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Customers: Cox Health, Essilor, State of New Hampshire, Algoma Central Corporation

A researcher’s opinion

If you’re a small business, then bill.com has a well-laid out website with simple navigation to all the information you need. That says something about how they design their software too. BILL has received many awards in areas that matter, like easy-to-use software and customer support.

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For the medium size business, Airbase has so many great reviews online that they are hard to ignore. Some of the highest scores are for ease of use and customer support. However, Stampli has a team of highly skilled experts, a comprehensive site and a great customer service rating.

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Enterprises will be in good hands with both Celonis and MHC AP Software. Both companies are specialists in their field and integration with company ERP is something they are known for.

Automation facts and figures

Here are a few facts and figures related to the benefits of automating AP:

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Automation can reduce the time it takes to process invoices by up to 80%.
Automation can reduce the error rate in invoice processing by up to 95%.
Automation can reduce the cost of processing an invoice by up to 60%.
Automation can reduce the risk of fraud in the invoice processing process by up to 90%.
Automation can improve vendor relationships by enabling businesses to pay vendors more promptly and accurately.

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These figures are averages taken from research and will vary depending on the specific features and capabilities of the AP automation software that you use, as well as the specific needs and processes of your business.

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However, it's clear that automating the invoice processing process can provide significant benefits in terms of efficiency, accuracy, and cost savings. It's important to carefully evaluate the features and pricing of different AP automation software options to find the one that best meets the needs of your business

A concluding word

There are many great AP Automation companies out there and they are increasing yearly, as companies recognize that this market is becoming bigger.

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Any growing company wants to find a partner that can grow with their business. All of the products reviewed offer the opportunity to try their software and to engage with you about your needs. Each company has very specific areas to tackle and the right service provider will meet budget requirements and care about what you need.

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Companies who want to give you the resources to grow your business and will support your long-term AP goals are more likely to be what you need.

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Peter Drucker, the world-renowned business consultant, said, ‘whenever you see a successful business, someone once made a courageous decision.’

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AP Automation is on the doorstep of business world-wide. Make that courageous decision.

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Footnotes:

[1] https://www.auxis.com/blog/accounts-payable-trends