How to choose accounts payable software

Accounts payable software automates the journey of supplier invoices: it receives them, reads their data, matches them to the purchase documents, manages approvals and leaves them posted in the ERP. Almost every tool promises that; the differences lie in the type of company each is built for and how it handles matching.

1. How it matches invoices

This is the criterion that matters most for an industrial company. Check whether it compares the invoice to the purchase order and delivery note line by line, whether it supports tolerances by amount, percentage or quantity, and whether it handles partial deliveries: several delivery notes per invoice or several invoices per order. If it only compares totals, the core work will still be manual. More detail in what three-way match is.

2. Integration with your ERP

Ask whether it integrates with the ERP you already use, in your specific version, and who builds that integration: your team, your ERP consultancy or the software vendor. It’s the part most often underestimated in time and cost.

3. Several companies

If you have several companies or tax IDs, check that it assigns each invoice to the right entity and that the whole team can work from a single account.

4. What size of company it’s built for

Platforms built for multinationals cover many countries and processes, but usually involve long projects and an in-house IT team. A mid-sized company needs something else: a fast start, and someone to handle the technical side.

5. Pricing model

Per-user licences, a flat fee or pay per document. With per-user licences, every person from purchasing or management you add makes the tool more expensive; with pay per document, the cost follows your real volume.

6. A trial with your documents

A demo with sample invoices always works. Ask to see it with your invoices and delivery notes, including the hard cases: partial deliveries, variable weight, suppliers with odd formats.

Questions to ask in every demo

• What happens when an invoice doesn’t match? Who gets it, and with what information?
• How does it catch a duplicate invoice if the supplier changes the numbering?
• Which part of the integration with our ERP do you build, and how long does it take?
• How does it handle paper invoices or phone photos?
• What does it cost at our volume of invoices and delivery notes, and what happens if it grows?
• Can we run a pilot with our own documents before signing?

If you’re looking for a tool for a mid-sized manufacturer or distributor, with high delivery note volumes, partial deliveries and several entities, that’s the case we built Finaro for.