Top 8 Invoice Automation Software Solutions for 2025

Is your accounts payable (AP) team still spending hours on manual tasks like invoice data entry, chasing down approvals, and correcting errors? According to the Accounts Payable Automation Trends 2024 report by the Institute of Finance and Operations Leadership, 51% of businesses say too much manual data entry is one of the biggest challenges they face.

Invoice automation software helps you reduce invoice processing costs, enhance visibility into payments, strengthen vendor relationships, and gain better control over cash flow.

However, with numerous invoice automation tools available that offer different features, pricing, and use cases, selecting the right one isn’t easy. 

In this guide, we have analyzed the top eight invoice automation software solutions for 2025. You will find a clear breakdown of their strengths, limitations, and top features to make an informed choice for your business.

What is Invoice Automation Software?

An invoice automation software automates the process of capturing invoice data, routing the invoice for approvals, and processing payments. The software helps create custom invoice approval workflows to reduce manual data entry, prevent invoice errors, and expedite vendor payments.

Invoice automation is at the heart of accounts payable automation as it speeds up the accounts payable cycle, ensures legal and industry compliance, and enables businesses to manage accounts payable more efficiently.

Benefits of Automating Invoice Processing

Automating invoice processing offers significant benefits to businesses, including reduced payment costs, fewer errors, faster payments, and improved vendor relationships.

Reduce the cost of invoice payments

It helps reduce the cost of payments by eliminating data entry errors, establishing clear approval paths, and ensuring timely error resolution. According to research by Ardent Partners, top businesses with fully automated invoice processing systems can save up to 78.71%.

Process invoices and payments faster

Invoice automation eliminates time-consuming manual tasks, such as data entry, routing for approvals, and payment scheduling.

With automated workflows, invoices are processed quickly and efficiently, resulting in faster payments and early payment discounts.

Minimize invoice and payment errors

By eliminating manual data entry, invoice automation reduces human errors like duplicate entries, incorrect data, or missed fields. Automated invoice processing systems validate invoice data and flag duplicates to ensure higher accuracy and fewer payment disputes.

Get improved visibility into payments

Invoice automation offers real-time dashboards, analytics, reporting, and audit trails. These tools provide clear insights into invoice status, approvals, and payments.

As such, finance teams can track spending, identify bottlenecks, ensure compliance, and make more informed decisions regarding accounts payable and cash flow management.

Improve vendor relationships

Invoice automation software offers vendor portals for quick insights into payments. Using the portal, vendors can track invoice status in real-time, manage billing details, and eliminate the need for follow-up.

Invoice automation also facilitates faster, accurate payments, which helps you build trust and better relationships with your vendors. This further leads to enhanced collaboration and better payment terms or priority service. 

Top 8 Invoice Automation Software in 2025: A Quick Analysis

Before we delve deeper into each invoice automation software and its features, here is a quick overview of these tools.

Software	Key Features	Pricing	Free Trial
PathQuest AP	Key field data extraction, Vendor-preferred payment method, Real-time invoice insights, Quick escalations	Custom	No
Rossum AP	AI for data capture, GL and tax coding, 2/3/4-way matching	Custom	14-day free trial
Coupa AP	Coupa CaaS, AI-driven data extraction, Coupa AI	Custom	No
Bill AP	Custom approval rules, Mobile accessibility, Robust integrations	$45/user/month	No
Xero AP	Xero AI, Invoice organization, Aged payables detail report	$29/month	30-day free trial
Yooz	“No Touch” processing, GL coding and PO matching, YoozPay	Custom	15-day free trial
Sage Intacct	AI purchase automation, Faster and accurate reconciliation, Vendor-preferred payment	Custom	No
Celonis	Touchless invoices, Pre-built applications, Invoice ingestion	Free plan	No

Top 8 Invoice Automation Software Solutions: A Detailed Breakdown

Invoice automation platforms are tailored to meet the specific requirements and address the pain points of the businesses they are designed to serve.

For example, a business in a highly regulated industry like healthcare wants security and reliability from its invoice automation software. At the same time, a manufacturing business that deals with thousands of invoices every month may need a solution that’s faster and can scale quickly.

As such, it is vital to understand what your business needs before trying to choose an invoice automation solution.

Here is a detailed breakdown of the eight best invoice automation software to help you make an informed decision:

1. PathQuest AP

PathQuest AP is an accounts payable automation software with advanced invoice processing automation capabilities for small and medium businesses. It offers advanced Optical Character Recognition (OCR) technologies and customizable invoice approval workflows to make invoice processing faster and more efficient.

You can also stay informed about the status of the invoice, as well as that of other stakeholders, based on custom approval rules. PathQuest AP also lets you import and sync any number of invoices from your go-to cloud storage option, like Google Drive, Dropbox, or email.

The platform also helps ensure better control over expenses and eliminates delayed, duplicate, and fraudulent payments by automating invoice data extraction.

PathQuest AP top features

• Key field data extraction: Extract data from key fields in your invoice to avoid duplications and fraudulent entries. It also allows you to reduce errors due to manual efforts and follow-ups to address these errors.
• Vendor-preferred payment method: Pay your vendors using their preferred payment method, such as ACH, credit cards, virtual cards, checks, wire transfer, and more. This helps build better vendor relationships and avail favorable payment terms.
• Real-time invoice insights: Get real-time invoice insights, such as approved invoices, pending invoices, and processed invoices. These insights help you manage your cash flow better and schedule future payments.
• Custom invoice approval workflows: Build and optimize invoice approval workflows as you need by adding multi-level approvers based on amount, departments, and other rules to ensure faster invoice processing and payments.
• Quick and easy escalations: Generate escalation tickets within the PathQuest AP platform to address any invoice errors, vendor billing detail mistakes, or delayed approvals to resolve them quickly.

PathQuest AP pros

1. Save time and cost by automating end-to-end invoice processing
2. Faster integration with leading ERP or accounting software
3. Make smart cash flow decisions with detailed dashboards
4. Extensive training and support to help master the tool
5. Proactive customer support for quick resolutions

PathQuest AP cons

1. Payment details are not available on the website
2. Potential learning curve for new AP executives

PathQuest AP target audience

PathQuest AP’s invoice automation is suitable for small and medium-sized businesses.

2. Rossum

Rossum is an AI-first end-to-end document automation platform for medium to large enterprises in document-intensive industries. 

Most enterprises process diverse invoice formats from vendors, making template-based solutions unreliable and time-consuming. However, Rossum’s machine learning engine eliminates the need for constant template updates and IT involvement, as it adapts to any document layout. The platform can also handle complex, high-volume AP operations across any country, language, or regulatory environment. 

Rossum’s AI-driven, template-free data extraction also automates invoice data entry, approvals, and validation and processes invoices up to 10 times faster and with fewer errors.

Top features

• Fast-learning AI for data capture: Capture invoice data, like invoice number, vendor name, and invoice amount, with a fast-learning data capture AI
• GL and  tax coding: Identify the correct GL and tax code from the invoice based on master data,  document context, and previous decisions
• 2/3/4-way matching: Validate your invoice using 2/3/4-way matching to ensure accuracy, fewer mistakes, and faster error correction

Pros

1. Precise data recognition and extraction with minimum errors
2. Rossum is user-friendly and can be set up quickly
3. Professional and timely customer support

Cons

1. Slow processing when large invoice details are involved
2. Limited reporting and statistics features

Best suited for:

Large and enterprise businesses that want to automate their accounts payable processes.

3. Coupa

Coupa offers an AI-native, comprehensive spend management platform unifying invoicing, procurement, and payments for small, medium and enterprise businesses. Coupa eliminates manual errors, ensures compliance, and strengthens supplier relationships with diverse invoice processing features, such as 2-way and 3-way matching, automated approvals, and virtual card payments. 

Coupa is ideal for small and medium businesses, as it has features around touchless invoice processing, a user-friendly supplier portal, and scalable workflows – suitable for any growing business, and highly elastic invoice volumes. 

Enterprise businesses can also leverage Coupa. Its global e-invoicing support, AI-powered fraud detection, and robust APIs can help streamline and maintain compliance with high-volume AP.

Top features

• Coupa CaaS: Use Coupa’s compliance-as-a-service to automatically validate the invoice and ensure compliance with the vendor’s country-specific regulations
• AI-driven data extraction: Capture data from invoices in PDF and other image formats with high accuracy for fewer errors and delayed payments
• Coupa AI: Prevent fraudulent and duplicate invoice payments even before they happen, using Coupa AI to safeguard your cash flow

Pros

1. Excellent access control system to avoid overwriting and errors
2. Suitable for highly complex and simple invoice automation
3. Easily manage vendors and track their performance

Cons

1. Highly complex for small and medium businesses
2. Limited reporting and analytics features

Best suited for:

Small, medium and large global enterprises that need cross-departmental invoice approval workflows.

4. BILL

Bill is an AP/AR processing platform with strong invoice processing capabilities for small and mid-size businesses. 

The platform uses AI and cloud technology to digitize and streamline the entire invoice lifecycle from invoice capture, approval to reconciliation. Its invoice processing tools are designed to be intuitive and efficient for small businesses, while its capability and customizable AP workflows support growing, mid-market players. 

It also simplifies compliance for SMBs with a centralized dashboard for real-time invoice status and exportable reports for detailed audit trails. Bill’s strong emphasis on security and compliance makes it ideal for regulated industries such as healthcare or finance.

Top features

• Custom approval rules: Set up custom policies for invoice approvals based on amount, number of approvers, and department
• Mobile accessibility: Verify and validate invoices on the go and approve invoices from the mobile app
• Robust integrations: Integrate Bill invoice automation with leading accounting and ERP systems, like Sage Intacct, QuickBooks, Xero, Microsoft, and NetSuite

Pros

1. Process next-day payments to international vendors
2. Easy to use and learn, even for non-accounting professionals
3. Professional and responsive customer support

Cons

1. Complex and challenging verification process
2. Limited reporting tools and a lack of customization for detailed analysis

Best suited for

Small, medium and Mid-market firms that need secure and scalable invoice automation software to streamline accounts payable.

5. Xero

Xero AP helps small businesses and freelancers automate invoice data capture and simplify payments using its accounts payable software. The platform automates invoicing, bill tracking, and bank reconciliation with AI-driven transaction categorization. This makes it convenient for small businesses and freelancers who don’t have dedicated AP staff to save time. 

The platform also offers simple approvals and error checks to help AP stay accurate and compliant while letting users focus on growth.

Top features

• Xero AI: Extract billing details from invoices by uploading them to the software or forwarding them to the platform to avoid errors and ensure quick processing
• Invoice organization: Organize all invoices by their approval status and automatically schedule payments for on-time processing
• AP aging detail report: Get details of all your invoices, credit notes, and overpayments owed with the AP aging detail report for better cash flow management

Pros

1. Xero’s platform is easy to use and master
2. Cloud-based platform that can be accessed from anywhere
3. Pay multiple invoices at once and carry out automatic reconciliation

Cons

1. The UI feels outdated for modern users
2. Lack of integration with Stripe accounts

Best suited for:

Small and medium businesses that want to optimize their invoice processing and speed up payments to vendors.

6. Yooz

Yooz is a cloud-based, AI-powered solution that offers end-to-end invoice automation capabilities for small and medium-sized businesses. 

It leverages AI, RPA, and deep learning to minimize human intervention in invoice processing, thereby improving security and compliance. This focus helps it streamline the entire purchase-to-pay process with speed and accuracy that most SMBs look for. 

Yooz’s easy-to-use platform helps you to build a complete paperless AP process that lets you pay vendors on time and capture cash back and early payment discounts.

Top features

• AI-driven “No Touch” processing: Enable real-time and truly touchless invoice processing with a unique blend of AI, deep learning, and big data
• General ledger (GL) coding and PO matching: Automate GL coding and PO matching in real time without upfront configuration or template building
• YoozPay: Approve, process, and confirm payments directly in Yooz, with seamless ERP updates using the YoozPay embedded payment solution

Pros

1. Easy-to-use and visually clear interface for effortless AP processing
2. In-app comments and chat for better AP team collaboration
3. Custom automation workflows with multiple user groups

Cons

1. Slow system adaptation from corrections
2. Backward integration challenges with limited APIs

Best suited for:

Mid-market businesses that need secure, scalable, and easy-to-use AP automation with robust invoice automation features.

7. Sage Intacct

Sage Intacct is a comprehensive cloud-based ERP for mid-market and enterprise businesses with complex financial needs. It offers a powerful AP module with extensive invoice automation, customizable reporting, and multi-entity management capabilities. 

Its cloud-native platform cuts processing times by over 50% and enables finance teams to focus on high-value tasks, such as forecasting and compliance. You can also gain a centralized overview of all automated transactions happening on the platform, providing a single source of truth.

Top features

• AI-powered purchase automation: Email or upload your purchase invoice with the help of Intacct AI and create prepopulated invoice drafts.
• Faster and accurate reconciliation: Reconcile invoice payments with quick auto-matched and auto-created draft transactions
• Vendor-preferred payment: Pay your vendors in their preferred payment method, such as ACH, virtual cards, check, and more

Pros

1. User-friendly platform that’s easy to use
2. Access the platform from anywhere with cloud accessibility
3. Real-time payments visibility for faster cash flow management

Cons

1. Learning curve is quite steep
2. Expensive compared to other platforms

Best suited for:

Mid-size and large businesses that need GAAP-compliant financial reporting capabilities.

8. Celonis

Celonis is not your traditional invoicing platform. Instead, it is a robust process mining tool that optimizes AP workflows through data-driven insights and automated invoice capture. It uses its process mining features to identify AP process bottlenecks and streamline invoice processing. Celonis also offers actionable insights based on machine learning to improve your AP performance, speed up payments, and enhance cash flow management.

Top features

• Touchless invoices: Automate end-to-end invoice data capture with no human intervention for error-free invoice data extraction
• Pre-built applications: Use robust and pre-built applications to automate your business’s most common accounts payable use cases
• Invoice ingestion: Read each invoice using natural language processing technology that improves with every instance of invoice error correction

Pros

1. Quickly identify and avoid duplicate invoice payments
2. Capture cash discounts from vendors for early payments
3. Detect payments in the wrong currencies to avoid incorrect payments

Cons

1. Steep learning curve
2. Customer service takes time to resolve issues

Best suited for:

Large businesses and enterprises that want to optimize invoice process automation and remove payment bottlenecks with analytics.

How to Choose the Right Invoice Automation Software

Consider these six key factors to evaluate solutions while trying to pick the best invoice automation software for your business.

Consider the data capture accuracy

Look for software with advanced OCR and AI to ensure high data capture accuracy. This is important as it helps reduce manual corrections, minimizes errors, and speeds up invoice processing.

Fewer errors will also speed up invoices and help build better vendor relationships.

Workflow flexibility and customization

Based on what your business needs and how big or small it is, your invoice approval workflows can change. Hence, pick a tool that supports customizable approval workflows.

Flexible workflows align with your internal processes while speeding up approvals and ensuring compliance with company policies.

Integrations with your IT tools and systems

Ensure the software integrates seamlessly with your ERP, accounting, and procurement systems.

Strong integrations improve data flow, reduce duplicate work, ensure accurate payments, and give you a single source of truth across platforms for smart, informed decision-making.

User experience of the solution

Select invoice automation tools with an intuitive and user-friendly interface. A clean UI reduces training time, encourages team adoption, and minimizes errors during use. It will also help boost productivity across your finance operations.

You can check this out by requesting a free demo of the invoice automation software.

Check pricing plans and hidden costs

Different invoice automation software may have different plans. Some may charge based on invoice processes, while others may offer a fixed number of invoices as part of a subscription. 

Evaluate the total cost, including setup, integrations, licenses, additional features, and support.

The right solution should offer a good ROI by reducing processing costs and improving efficiency.

Ensure the software is scalable

Pick a platform that grows with your business. Scalable solutions handle rising invoice volumes and additional users without performance dips.

This will also ensure long-term usability and investment protection while eliminating the need to constantly migrate the tool every time you hit a growth milestone.

Automate Your AP Process with PathQuest

The best invoice automation software streamlines your entire accounts payable process exactly as your business needs. From accurately capturing invoices from various sources to routing them for approval, facilitating error correction, and scheduling payments, invoice automation software ensures speed, efficiency, and visibility.  

While most AP automation software comes with these benefits, PathQuest AP takes it a notch further with a variety of features:

1. Customizable approval workflows to create tailored workflows with robust exception handling capabilities
2. Detailed and insightful dashboards with real-time invoice status for better decision making and cash flow management
3. AI-powered OCR technology to accurately capture invoices from Google Drive, emails, Dropbox, and more
4. Easy vendor management with a purchase order system, with comprehensive access to invoice history and comments
5. PathQuest AP portal to manage escalations within the platform and send custom notifications to stakeholders for quick resolution

These capabilities of PathQuest AP help you reduce invoice processing errors, gain deeper insights into invoice payments, and foster stronger vendor relationships.

Book a free demo of PathQuest AP to learn how you can save up to 50% of your accounts payable team.

Frequently Asked Questions

Which software is best suited for small to mid-sized businesses?

PathQuest AP is the best invoice automation software for small to mid-sized businesses. It offers easy setup, advanced invoice data capture, intuitive dashboards, and cost-effective automation. PathQuest AP software also simplifies invoice and cash flow management without overwhelming teams. All these features make it an ideal choice for small and medium-sized businesses.

What is invoice automation software?

Invoice automation software is a digital solution that replaces manual invoice processing with digital tools. It uses OCR, AI, and automated workflows to capture data, route approvals, and handle payments. This enables AP teams to save time, reduce errors, pay invoices faster, and improve the overall efficiency of AP processes.

How does PathQuest’s solution stand out among competitors?

PathQuest AP stands out for its user-friendly interface, fast implementation, and built-in analytics. It also offers high data capture accuracy, strong error correction features, custom approval workflows, and smooth ERP integration. All these capabilities make PathQuest AP a standout solution among competitors.

What are the benefits of implementing invoice automation software?

Implementing invoice automation software cuts processing time, lowers costs, and minimizes errors. It also helps teams gain visibility through real-time dashboards and audit trails, and build better vendor relationships with timely payments.

What are the top invoice automation software solutions available in 2025?

Top solutions in 2025 include PathQuest AP, Rossum, Coupa, and Xero. Although all these accounts payable automation tools improve AP processes, PathQuest AP fares better thanks to its advanced features, friendly UI, and proactive customer support.