How to Select AP Automation Software for My Business?

In today’s fast-paced digital environment, investing in AP automation software isn’t just a matter of convenience—it’s a strategic move that directly influences cash flow visibility, regulatory compliance, and vendor satisfaction.

With a growing number of solutions on the market, businesses need more than just features—they need a tool that aligns with their specific workflows and scales with their growth.

Platforms like turbodoc.io, a flexible and intelligent AP automation solution, are designed to simplify invoice capture, streamline approvals, and provide end-to-end visibility across the accounts payable process.

Below, we outline a step-by-step framework to help you evaluate and choose the best AP automation software — backed by industry data, practical checklists, and real-world comparisons.

Why AP Automation Matters Now More Than Ever

According to a 2024 report by Levvel Research, 71% of organizations say they plan to increase their investment in AP automation over the next two years. The key drivers?

  • Cost savings: AP automation can reduce invoice processing costs by up to 80%.
  • Faster cycle times: Manual AP processes average 25 days per invoice; automation brings it down to fewer than 5 days.
  • Stronger vendor relationships: Timely payments improve trust and often lead to better terms.

As businesses scale or navigate hybrid work models, paper-based and manual invoice processes are no longer sustainable.

Step-by-Step Guide to Choosing AP Automation Software

Assess Your Current AP Workflow

Before exploring solutions, map out your current AP process:

  • How many invoices do you process per month?
  • How are invoices received (email, paper, EDI)?
  • What are your approval bottlenecks?
  • How many team members are involved in AP?

Understanding the “as-is” process allows you to prioritize features you actually need versus nice-to-haves.

Define Must-Have Features

The best AP automation software aligns with your business size, industry, and ERP system. Here’s a checklist to consider:

Feature

Why It Matters

OCR and data capture

Reduces manual data entry errors

Multi-level approval workflows

Enforces compliance and speeds up processing

ERP integration (e.g., NetSuite)

Ensures seamless data sync

Audit trails and compliance logs

Critical for finance teams and audits

Vendor self-service portals

Reduces email traffic and follow-ups

Early payment discount tracking

Captures cost savings opportunities

Make a shortlist of vendors offering these based on your workflow complexity.

Compare Top Vendors Based on Key Criteria

Not all solutions are created equal. Consider the following comparison of leading tools based on real user feedback and analyst ratings:

Vendor

Best For

Integrations

Ease of Use

Support Rating

Pricing Model

Tipalti

Global AP & tax compliance

NetSuite, Xero, SAP

★★★★☆

★★★★☆

Volume-based

AvidXchange

Mid-sized enterprises

QuickBooks, Oracle

★★★☆☆

★★★☆☆

Subscription + per invoice

Stampli

Team collaboration

Sage, Microsoft Dynamics

★★★★★

★★★★★

User-based license

Basware

Complex workflows

SAP, Oracle

★★★☆☆

★★★★☆

Custom pricing

Melio

Small business simplicity

QuickBooks

★★★★☆

★★★☆☆

Free for ACH, per card fee

Turbodoc

Modern automation & scalability

QuickBooks, Xero, Zapier, API

★★★★★

★★★★★

Transparent, usage-based pricing

Pro Tip: Always request a sandbox or trial to test core features before making a commitment.

Evaluate Scalability and Security

As your business grows, your AP automation software should scale with it.

Ask vendors:

  • Can the platform handle 5x invoice volume without performance degradation?
  • Is data encrypted in transit and at rest?
  • Does it support multi-entity or global operations?
  • Are there SOC 2, ISO 27001, or GDPR compliance certifications?

Security is non-negotiable, especially when handling financial and vendor data.

Understand the True Total Cost of Ownership (TCO)

Beyond licensing, consider:

  • Implementation fees
  • Training and onboarding costs
  • Support plans (24/7, dedicated manager?)
  • Customization or integration costs

According to Gartner, hidden costs can increase total spend by 40% over initial estimates. Clarify this upfront.

Common Mistakes to Avoid

  • Choosing based on brand name alone
  • Ignoring user experience (especially for non-finance approvers)
  • Underestimating implementation timelines
  • Skipping due diligence on compliance (especially for public companies)

Final Thoughts: Make Data-Driven Decisions

The right AP automation software is not necessarily the most expensive or most feature-rich—it’s the one that fits your operational goals and scales with your business. Use internal KPIs (like average invoice processing time or late payment penalties) to track ROI post-implementation.

Summary Table: AP Automation Software Selection Checklist

Evaluation Area

Questions to Ask

Workflow Compatibility

Does it fit my current AP process or require an overhaul?

Integration

Does it connect natively with my ERP/accounting software?

Automation Depth

Can it handle multi-tier approvals and recurring invoices?

Compliance & Security

Are audit trails, permissions, and certifications in place?

Vendor Support

Is onboarding included? What’s the SLA for support queries?

ROI Measurement

Are there dashboards or analytics to track performance improvements?