8 Best Accounts Payable Software for All Business Sizes in 2025

Accounts payable (AP) is a crucial function that determines if vendors are paid on time, how cash flows are managed, and whether the overall financial health of the company is sustained with accurate tracking of payments and liabilities.

Yet nearly 60% of businesses still rely on outdated and inefficient manual processes that cause data entry mistakes, delay vendor payments, trouble vendor relationships, and increase the cost of payments.

Businesses, regardless of their size, use  AP automation software to save time, understand payables in real-time, and manage vendor relationships. With features like AI-enabled approval workflows, quick exception handling, and intuitive dashboards, companies are making AP processes more efficient.

However, due to the sheer number of tools, businesses face a complex buying process, often burdened with the following questions:

– How to find a solution that scales with invoice volume without disproportionately increasing costs for my company?

–  How to differentiate a tool for small businesses and enterprises?

– Do these tools offer genuine AI-driven automation, or are they merely basic rule-based workflows?

– Are you looking for a full procure-to-pay suite or just invoice automation features?

In this blog post, we have answered these questions by curating eight accounts payable software—their features, pros and cons, and ratings. 

But before that, let’s see what AP software is.

What is Accounts Payable Software?

AP automation software helps businesses streamline and automate their AP processes end-to-end – from receiving vendor invoices to making successful payments.

The software replaces conventional, paper-based processes, such as manual data entry, approval routing, writing checks, and payment reconciliation, with automated processes using custom workflows.

An AP software solution has features to automate four core functions:

1. Invoice capture: Extract data automatically from paper or digital invoices using Optical Character Recognition (OCR) and AI
2. Approval workflows: Route invoices to the right stakeholders for quick and rule-based approvals as per business preferences
3. Vendor payments: Schedule and process payments through preferred methods, such as ACH, check, and credit cards for vendors
4. Payment reconciliation: Match invoices, POs, and payments to ensure accuracy  and keep records up to date

Key Features to Look for in AP Software in 2025

The best AP software must deliver control, visibility, and scalability to improve your financial oversight and spend management.  To achieve this, it must possess the following features.

1. OCR and data capture

OCR technology helps scan and read text from paper, PDF, or email invoices. It helps automatically extract relevant data, such as invoice number, date, vendor name, and amounts, into the AP system.

Advanced OCR helps AP executives:

• Convert unstructured invoice data into structured information
• Reduce errors and speed up invoice processing
• Eliminate manual data entry

As invoice capture is the first step in AP automation, advanced AI-powered OCR is a critical feature every AP solution should have.

2. Approval workflow automation

A good AP automation software offers adequate approval workflow automation to route invoices through predefined approval steps.

A software with a robust approval workflow automation can:

• Send invoices to the right approvers based on amount, department, and more.
• Track the status of each invoice in real time
• Send reminders and escalations to avoid bottlenecks
• Enable exception handling to correct errors and mistakes

Automated workflows reduce delays, and lead to faster approvals, fewer errors, and improved compliance while eliminating the need for multiple follow-up tasks.

3. Integration with ERP and accounting systems

An AP solution never works in isolation. Instead, it collects data from multiple business management systems, like ERP and accounting software.

These integrations are important as they help businesses with:

• Syncing AP data automatically between AP and other accounting systems, like, for example, pushing approved invoices from your AP system into NetSuite or QuickBooks for seamless posting
• Eliminating duplicate data entry issues as the integration helps sync the vendor details entered in ERP instantly with the AP platform, without any human intervention
• Carry out real-time financial reporting and analytics, like getting up-to-date cash flow dashboards by pulling invoice and payment status directly from systems like Sage Intacct or Oracle

4. Audit trails and compliance features

Invoice processing often involves multiple stakeholders with different responsibilities:

1. AP executives to capture invoice data
2. Invoice approvers to approve invoices sent to them, and
3. Correction handlers to address invoice errors or mistakes

Without built-in audit trails, AP software lacks the necessary visibility, including who approved the invoice, who made the changes, when, and for what reason. These details are vital for audits and regulatory adherence.

And a lack of visibility into these crucial processes can delay audits and increase the risk of non-compliance, such as incorrect 1099 reporting, missing tax calculations, and more.

Hence, look for an AP automation software with adequate audit trails and compliance features, such as:

• Chronological records of every transaction
• Secure document storage
• Role-based access controls
• Data encryption and secure access protocols

5. Multi-user access and role-based permissions

An AP software with multi-user access makes it easy for you to:

• Ensure collaboration across departments and locations
• Restrict sensitive functions, like payments or approvals, to authorized persons
• Customize access to match organizational hierarchy and segregation of duties

Top 8 Best Accounts Payable Software: An Overview

Before we dive into the details of the top eight accounts payable software tools for businesses, here is a quick comparison between all these tools:

Software Name	Best For	Key Features	Pricing	Free Trial
PathQuest AP	Small and medium businesses	Custom bill approval workflows, PathQuest AP portal, Purchase Order system	Custom	N/A
Melio AP	Small and medium businesses	AI-powered bill capture, Flexible payment option, Payment tracking and reporting	Free basic plan	N/A
Airbase AP	Medium and enterprise businesses	Self-service vendor portal, Customizable workflow, Detailed audit trail and reporting	Custom	N/A
Coupa AP	Medium and enterprise businesses	Touchless invoicing and invoice matching, Coupa Pay, Dynamic approval workflows	Custom	N/A
Xero AP	Small and medium businesses	Automated bill capture, Smart payment management, Custom roles and controls	$29/month	Yes
SAP Concur	Medium and enterprise businesses	Electronic invoice capture, Mobile workflow and approvals, Cash flow forecasting tools	Custom	N/A
DocuWare AP	Small, medium, and large businesses	Automatic invoice data extraction, Dynamic approval workflows, Audit-proof archiving	Custom	N/A
Centime AP	Small and mid-market businesses	Native ERP integration, Self-service vendor portal, AI-powered invoice capture	Custom	N/A

8 Best Accounts Payable Software Tools: A Comprehensive Analysis

Picking the most suitable AP software tool for your business can improve how you manage vendor relationships and payments exactly as you need, based on your needs, preferences, and demands.

However, each business has unique needs to optimize and manage accounts payable depending on its size.

Here are the top eight accounts payable software tools we have picked to help businesses of different sizes.

1. PathQuest AP

PathQuest AP is an AP automation solution that helps automate diverse AP processes, such as invoice capture, invoice approval process, vendor management, and scheduling payments.

PathQuest AP helps reduce the time spent on correcting invoice errors and manually adding invoice details for payment processes. The platform also enables its users to improve efficiency, enhance visibility, and reduce errors, resulting in faster approvals and payments. 

Its dashboards help you understand the status of your invoice, who is responsible for approving it, and how many are approved and unapproved. These insights help you make informed decisions about your current and future payments.

Top features

• Custom bill approval workflows: Create custom invoice approval workflows according to your internal business needs and hierarchies for faster approval of bills
• PathQuest AP portal: Save time and effort when addressing invoice errors and mistakes using the PathQuest AP portal to create escalation tickets within the platform and avoid lengthy email back and forth for each issue
• Smart OCR: Automatically import invoices from diverse sources in no time and accurately scan and extract invoice details using smart OCR technology
• Vendor management: PathQuest AP helps build a fully touchless system where all invoice history, approvals, and comments are centralized on one platform to streamline vendor management and ensure timely payments
• Smart payments: Process payments in any payment method, such as ACH, credit cards, checks, PO system, and more, as preferred by your vendor
• Real-time dashboards: Use PathQuest AP’s real-time dashboards to get detailed insights into the status of your invoices, approvals, and payments

PathQuest AP pros

1. Get full control over your AP automation system by creating workflows exactly as your business needs
2. Work with all top leading accounting and ERP platforms, like QuickBooks, Xero, and Sage Intacct
3. Automate your entire AP workflow without making any changes to your current system
4. Ensure better control and visibility of your AP processes by eliminating fraud, mistakes, and manual data entry
5. Minimize human intervention per transaction by receiving, tracking, and approving invoices automatically within a unified platform

PathQuest Cons

1. Pricing details are unavailable online
2. The learning curve is steep for small businesses

Best suited for:

Small and medium businesses that need reliable AP automation software without complex workflows.

2. Melio

Melio’s AP automation focuses on delivering simplicity, flexibility, and cash flow optimization for small to medium-sized businesses (SMBs) and accountants. It offers a simple sign-up process and a clean interface accessible on laptop, mobile, and tablet. It is ideal for users looking to replace paper checks with digital solutions, without requiring extensive training. A key highlight of Melio AP is its ability to make international payments in multiple currencies at a fraction of the cost of traditional wire transfers.

Features

• AI-powered bill capture:  Use AI to automatically extract invoice data accurately from uploaded documents
• Flexible payment options: Choose any payment option, such as ACH transfer, credit cards, check, or international wire transfer
• Payment tracking and reporting: Track payment history by date range, use advanced search, sort, and filter tools

Melio AP pros

1. Easy to use with simple setup, intuitive interface, and quick training
2. Cost-effective subscription plans with a freemium model
3. Customizable workflows and multi-location support

Melio AP cons

1. Poor and slow customer support
2. Delayed payments

Best suited for:

Small and medium-sized businesses looking to accelerate their accounts payable (AP) processes.

3. Airbase AP

Airbase AP differentiates itself with a unique spend management system that combines accounts payable automation, expense management, and corporate card features. With no-code workflows, cloud-based modular design, automated three-way invoice matching, and self-service vendor portal, Airbase AP offers deep visibility over all your non-payroll expenses for better cash flow management. The platform’s end-to-end accounts payable capabilities make it ideal for small, medium, and large businesses seeking AP software that is easy to use and can scale. 

Features

• Self-service vendor portal: Vendors can onboard themselves, manage their billing info, and track payment status in real time
• Customizable workflows: Create customizable and multi-stakeholder approval workflows based on specific rules
• Detailed audit trail and reporting: Capture every step of the AP process digitally for a real-time audit trail

Airbase AP pros

1. Pay in 145+ currencies across more than 200 countries
2. Real-time synchronization with leading ERP systems
3. Reliable and responsive customer support

Airbase AP cons

1. High per-transaction fee compared to similar tools
2. Complex bank reconciliation process

Best suited for:

Medium-sized businesses and early-stage market enterprises that require faster, more reliable, and consolidated AP automation.

4. Coupa

Coupa AP offers an AI-native total spend management platform with robust AP automation capabilities for overworked AP teams at enterprise businesses. It offers AI-powered invoicing, fraud detection, efficient reconciliation, and multi-currency global payment automation–all in one platform. 

Its generative AI and touchless invoice processing help teams handle complex, global AP operations while enabling users to customize and schedule reports integrating real-time AP data. With Coupa AP software enterprise businesses can automate nearly 80% of their AP workload, enabling the AP team to focus on revenue-drivers.

Features

• Touchless invoicing and invoice matching: Automate invoice capture and validation  with automated 2-way and 3-way matching
• Coupa Pay: Manage payments, such as ACH, wires, checks, and virtual cards, across all payment rails in a single platform
• Dynamic approval workflows: Maintain control and compliance with multilevel, customizable approval workflows

Coupa AP pros

1. Use the AP automation software on mobile and desktop
2. Built-in controls to ensure comprehensive compliance
3. Get real-time spend analytics and cash flow visibility

Coupa AP cons

1. Complex supplier onboarding and account set-up
2. Not all features are available with a subscription

Best suited for:

Medium to large enterprise businesses that run their operations both locally and internationally.

5. Xero AP

 

Xero makes financial management effortless for small to medium-sized businesses, and its AP automation software ensures this by bringing simplicity and efficiency to AP processes. You can automate bill entry and streamline approvals while gaining real-time visibility into your cash flow with Xero AP software and avoid missed payments. Xero also integrates with platforms like Stripe to ensure payments are reconciled automatically. With a highly intuitive interface, Xero is easy to use and master for small and medium businesses.

Features

• Automated bill capture: Extract invoice details to create draft entries fast with Xero’s automated bill capture, powered by AI
• Smart payment management: Pay multiple bills at once and sync with your bank for faster reconciliation
• Custom roles and controls: Reduce errors and fraud by setting permissions and managing approval workflows based on roles

Xero AP pros

1. Pay bills all at once or in batches as per your cash flow status
2. Get insights into cash flow and payments with dashboards
3. Manage your AP from anywhere with cloud accessibility

Xero AP cons

1. Limited advanced AP automation features
2. Add-ons needed for scalability

Best suited for:

Xero’s AP software is ideal for small and medium-sized businesses that need a user-friendly AP automation tool.

6. SAP Concur AP

SAP Concur is a unified spend management platform with extensive AP automation capabilities tailored for global enterprise businesses that struggle with high invoice volume and fragmented AP data. 

The platform enables users maximize visibility, compliance, and control across global operations. The tool also offers built-in reporting and forecasting tools to enhance spend management, improve cash flow management, cut costs, and make smarter payment decisions. 

Using SAP Concur’s broad AP management features, finance teams can manage high invoice volumes without sacrificing compliance or efficiency.

Features

• Electronic invoice capture: Use advanced OCR and PO matching to reduce errors and eliminate manual data entry.
• Mobile workflow and approvals: Manage invoices, approvals, and payments anytime via user-friendly web and mobile apps.
• Cash flow forecasting tools: Generate reports and gain insights to time payments, control spending, and improve decision-making.

SAP Concur AP pros

1. Access your AP workflows on mobile devices from anywhere
2. Granularity and automation for better spend management
3. Clean interface that’s intuitive and easy to use

SAP Concur AP cons

1. Initial set-up is complex and resource-intensive
2. Challenging customer onboarding and registration

Best suited for:

Mid-sized and large enterprise-grade businesses that need extensive AP automation and expense management capabilities.

7. DocuWare

DocuWare‘s AP automation software helps streamline document management and workflow automation to create a secure, efficient, and compliant AP process. With DocuWare, AP processes are a part of a broader strategy that uses intelligent indexing, OCR, and AI to capture and organize invoice data. 

The platform also offers AES encryption, secure archiving, and transparent audit trails to further make your AP processes reliable and audit-ready and less prone to compliance risks. 

The platform’s focus on efficient document management and cross-departmental process optimization makes it ideal for enterprises with complex, secure invoice management needs. 

Features

• Automatic invoice data extraction: Extract invoice data from any invoice format automatically for accurate, fast processing
• Dynamic approval workflows: Route invoices based on custom business rules and send reminders to avoid payment delays
• Audit-proof archiving: Store all your invoices securely with full documentation and compliance with legal and audit standards.

DocuWare AP pros

1. Robust automation capabilities to automate all AP processes
2. Easy to use with effortless document management capabilities
3. Real-time dashboards to understand the payment status of invoices

DocuWare AP cons

1. The software is complex to work with
2. More expensive compared to similar AP tools

Best suited for:

DocuWare’s AP automation software is ideal for all types of businesses, from small to medium and large.

8. Centime

 

Centime AP is an AI-powered accounts payable software developed for businesses using NetSuite, Sage Intacct, or QuickBooks. 

The platform lets you automate every part of your AP cycle, such as OCR, coding, PO matching, approvals, payments, and supplier visibility within your ERP system. Centime uses an innovative approach to turn AP into a profit-making center by pairing the AP automation system with a high-yield operating account that generates interest on AP funds. 

With Centime’s AP automation platform, you get a unified financial automation solution that eliminates process inefficiencies while enabling you to make data-driven decisions.

Features

• Native ERP integration: Integrate directly within leading ERP systems, like NetSuite, Sage Intacct, and QuickBooks in real time
• Self-service vendor portal: Enable vendors to get real-time visibility into invoice and payment status
• AI-powered invoice capture: Use advanced AI and OCR to capture, extract, and code invoice data automatically

Centime AP pros

1. Earn interest on your AP balances
2. Predictive analytics to help manage cash flow
3. AI-enabled fraud protection and error detection

Centime AP cons

1. Works only with NetSuite, Intacct, and QuickBooks
2. Ongoing feature development

Best suited for:

Small and mid-market businesses that use NetSuite, Sage Intacct, or QuickBooks

Which Accounts Payable Software Is Best for You?

Choosing the right accounts payable software depends on your business size, complexity, and workflow needs.

Here is a breakdown of the top eight accounts payable software as per their suitability for small, medium, and large businesses:

1. Startups and small businesses: PathQuest, Melio, Xero AP
2. Mid-size businesses: PathQuest, Airbase AP, SAP Concur, Centime AP
3. Enterprise businesses: Coupa AP, SAP Concur, DocuWare’s AP

How to Choose the Right AP Tool

If you are a business working with global vendors, your AP solution must comply with global payment and compliance requirements. It must also let you add multiple approvers if you need approvals from different departments.

Without these features, you would be dealing with paper-based invoices, spending more on storage, non-scalable processes, and more human errors.

Here are a few key factors to consider when looking for an AP automation software solution for your business:

1. Consider the volume of invoices

Depending on the size of your business, the number of invoices you need to manage varies.

If you process a high number of invoices, you need a solution that can handle bulk uploads, batch approvals, and high transaction loads without slowing down. A lightweight tool may work for small volumes but struggle with enterprise-scale demands.

Likewise, paying for an expensive tool only to manage a very small number of invoices is not smart either, as you don’t need the extra bandwidth.

Hence, consider the volume of your invoices and pick suitable software that can meet your needs. 

2. Required integrations

Your AP must seamlessly integrate with your native systems and accounting solutions, like Xero, QuickBooks, and Sage Intacct to access vendor details for payments, reconciliation, and purchase order verification.

3. Compliance and audit needs

US-based businesses must comply with regulations such as SOX and IRS requirements, which mandate the maintenance of complete, timestamped financial records.

An AP software solution offering adequate compliance and audit features helps you:

1. Meet regulatory requirements by aligning with established standards
2. Ensure audit readiness with detailed, timestamped records and logs
3. Enhance security with role-based access and encrypted storage
4. Reduce fraud with approval workflows and end-to-end tracking

As such, look for tools with compliance and audit features, like automated audit trails, permission-based access, and secure data storage.

These features also help maintain transparency and reduce manual errors, while ensuring you are ready for reviews or audits.

4. UX and approval hierarchy support

A user-friendly interface and strong approval hierarchy support are essential for efficient AP workflows.

An intuitive UX reduces training time and errors, while customizable approval flows ensure invoices follow the right path based on roles, amounts, or departments.

When it comes to UX, you need to look for options, such as:

1. Drag-and-drop features to create workflows
2. Mobile access to AP processes anywhere
3. Role-based routing for streamlined collaboration

UX and approval hierarchy support will help create diverse approval workflows and correction handling as needed.

And the result is an efficient and faster accounts payable process.

Ready to Automate Your AP with PathQuest?

Choosing the right tool that can cater to your business’s unique needs based on its size is vital if you want to manage your cash flow well, build strong vendor relationships, and reduce the cost of payments.

PathQuest AP is a robust AP automation software solution suitable for small and medium-sized businesses looking to eliminate manual efforts, reduce errors, and gain visibility into AP processes.

With PathQuest, you can:

1. Ensure faster payments and reconciliation with custom workflows
2. Monitor invoice and payment statuses with real-time dashboards
3. Manage your vendors with a unified and touchless system
4. Pay your invoices in the preferred method by the vendor
5. Manage cash flow intelligently with deeper insights

Save 50% of your accounting team’s time now with PathQuest. Book a free demo and explore PathQuest AP now.

Frequently Asked Questions

What does accounts payable software do?

AP software automates the entire invoice-to-payment process from capturing invoices and matching them with purchase orders to routing them for approval and scheduling payments. The software aims to help businesses save time, reduce manual errors, and gain better control over cash flow while improving vendor relationships.

Which tool is the best for small businesses?

For small businesses, a good AP tool should be affordable, easy to use, and scalable. PathQuest is popular among small businesses for its simple setup, minimal training requirements, and automation features tailored to smaller teams.

How much does AP software cost?

The price of AP software can vary based on features, user limits, and volume of transactions. Many tools offer tiered or quote-based pricing. Hence, the best choice is to contact the sales team and get a custom plan for your business, just like what PathQuest offers.

Is PathQuest suitable for growing businesses?

Yes, PathQuest is a strong choice for growing businesses. It offers AP automation, real-time insights, advanced OCR features, and financial intelligence features to help automate your entire AP process. PathQuest is also capable of scaling as your invoice volume increases. You can also integrate it with popular accounting platforms, like Xero, QuickBooks, and Sage Intacct, which makes it ideal for growing businesses.

What features should AP teams prioritize?

When looking for an AP software solution, AP teams should prioritize features like automated invoice capture, role-based approval workflows, exception handling, ERP integration, audit trails, and real-time reporting.