An accounts payable process may look pretty simple from the outside. AP teams just receive an invoice, approve it, pay it, and reconcile it. But in practice, it becomes difficult when the AP teams get incomplete vendor data, inconsistent approvals, and 1099 reporting is in a scramble because teams don’t have the exact tax details.
But not every AP automation solution is the same. Some platforms focus on speeding up the payments, while others focus on strong internal controls, audit trails, and support for multiple accounting and ERP software. Some platforms also focus on compliance and simplified vendor onboarding to make your year-end reporting easier.
If you are looking for an AP automation software that can make your work not only easier but also efficient, you can consider reading this blog. In this blog post, we have curated a comparison between the top AP automation solutions like Melio vs BILL vs Zenwork Payments. Continue reading this blog till the end to know more about which software is best for your business or organization.
What Does Melio Payments Do?
Melio is a cloud-based bill payment software. The system is mainly preferred by growing SMBs and small teams who make lightweight and small payments. Melio has features such as scheduling payments and making payments with a business credit card (even if the vendor does not accept it). Its simple and modern interface makes it highly adaptable for small businesses. Along with business credit cards, Melio also supports payment methods like ACH, wire payments, and checks.
Pros
- Support for multiple accounting software integrations with major software like QuickBooks and Xero
- A simple and modern interface makes it easily adaptable for new users.
- Payment via credit cards (business credit cards), Melio allows you to pay almost any vendor with credit cards (even if the vendor does not accept card payments)
- Customized approval workflows
Cons
- Does not have a native 1099 reporting function.
- It may not be ideal for multi-entities because of heavy workflows
- Does not offer native support for payroll, expense management, or complex procurement
Overall, Melio can be a choice if your requirement is mainly focused on just paying vendors and keeping the process organized. The platform may not be ideal if you are looking for an all-in-one solution that also includes vendor compliance.
What Does BILL Do?
BILL is a global payments automation platform that covers both accounts payable and accounts receivable functions. The platform is popular for its global payments and multi-currency support. While other platforms like Melio are focused on small teams and lightweight payments, BILL is preferred by multi-entity organizations that process large invoice volumes.
Pros
- Covers both accounts payable and accounts receivable
- Supports integration with 10+ accounting and ERP software
- Built to handle the heavy workflows
- AI OCR software
Cons
- The platform can become a little overwhelming for the teams that only make small domestic payments.
BILL is a strong choice for organizations that mostly make international payments and are looking for a solution that can handle heavy workflows.
What Does Zenwork Payments Do?
Zenwork Payments is a compliance-focused AP solution. The platform is built to solve the major pain points of SMBs, CPA firms, and large organizations. It simplifies the vendor onboarding process and collects the required information at the time of onboarding, so there’s no issue in tax season. Plus, it also provides real-time TIN matching, collects W-9s, and manages invoice approvals and payments while keeping your 1099 reporting up to date with the vendor record.
Pros
- Simplified vendor onboarding with data collection
- Real-time TIN matching and W-9 collection
- Built for scale with bulk import for vendor records
- Native 1099 reporting
- Customized AP workflows
- Role-based access control
Cons
- The platform is currently focused on AP functions and not AR.
- 1099 eFiling support can be overwhelming for teams that are not focused on compliance.
Overall, if you are looking for the best AP software for vendor onboarding and 1099, you can consider opting for Zenwork Payments. Mainly, because of its compliance-first approach and streamlined AP workflows.
Comparison of Melio vs BILL vs Zenwork Payments
To help make you a better choice, we have created this comparison table of key features of Melio vs BILL vs Zenwork Payments.
| Key features | Melio | BILL | Zenwork Payments |
|---|---|---|---|
| Best for | Small teams who make lightweight payments | Large organizations who do international payments | Organizations who are focused on simplifying AP and are looking for compliance support. |
| Vendor support | Self-service vendor portal | Does have a separate vendor portal for vendor management. | Dedicated xForce vendor portal for clear visibility |
| Invoice approvals | Supports lighter controls | Customizable approval workflow | Supports customizable approval workflows with role-based access controls |
| Payment Methods | Multiple payment method with Card, ACH and Checks | Multiple payment options with ACH and Checks | Supports multiple payment options with ACH, FastPay ACH and Checks |
| Compliance support | Does not have native 1099 filing support | Native, end-to-end 1099 support | Native, end-to-end 1099 support |
| Integration support | Supports multiple ERP and accounting software integration | Supports multiple ERP and accounting software integration | Supports multiple ERP and accounting software integration |
| Cost | Tier based pricing starting at $25/month | Tier based pricing starting at $49 per user/month | Tier based pricing starting at $19.99/month/per user ($2/month per billable vendor) |
So, now that you know all the major differences and features of Melio, BILL, and Zenwork Payments, you can consider getting a demo of any of them as per your requirements.
- If you are looking for a simple and modern system for small payments, you can give Melio a try.
- If your main requirement is handling a large volume of invoices and international payments, you can consider BILL.
- And, if you are looking for an all-in-one platform that can also handle your 1099 compliance needs, Zenwork Payments should be at the top of your list.
Why Zenwork Payments Is a Primary Alternative
Did you know? In FY 2024, the IRS collected almost $3.2 billion with delinquent returns (returns not filed timely). These numbers show that compliance is not something an organization can take lightly. It’s not a choice but a need. But, often organizations do not meet the compliance requirements and get penalized for small reasons. Like missing collecting W-9 or not having complete details, these small mistakes come to light in the tax season. Then the teams start looking at email threads, chasing W-9s, correcting vendor names, and missing TINs.
This is where Zenwork Payments makes a difference; the solution is built to resolve this pain point. So, organizations do not have to deal with these issues in the tax season. With Zenwork Payments, you get:
- Simplified vendor onboarding and data collection at the time of onboarding only.
- W-9 collection and real-time TIN matching.
- Native 1099 compliance support.
So, if you are looking for a compliance-first automated AP solution, Zenwork Payments can be your primary alternative.
FAQs
1. In Melio vs BILL vs Zenwork Payments for AP automation, which platform is the best fit for my AP workflow?
Each of these platforms we mentioned above is good in its own use cases, while Melio is good for making small payments, and BILL is a good option for making international payments. On the other hand, Zenwork Payments is a good option if your team is looking for a compliance-first automated AP solution.
2. For Zenwork Payments vs BILL for contractor payments, what’s the everyday difference for finance teams?
One of the biggest differences is that Zenwork Payments focuses on W-9 collections and TIN matching, which is directly connected to payments and 1099 compliance. BILL focuses on approval workflows, permissions, and broader AP process controls.
3. When we compare Melio and BILL costs and features, what should we evaluate beyond the pricing page?
When you are comparing Melio and BILL based on costs and features, you should compare total cost based on users/entities, monthly payment volumes, and whether any transaction fees are involved. The best choice should be based on where your cost aligns with the workflow depth that you actually need.
4. What should we expect from AP automation with vendor onboarding and compliance in an AP process?
A streamlined process of AP automation with vendor onboarding is a controlled vendor intake flow that collects important information like tax and banking details at the time of onboarding. Also supports real-time TIN matching and W-9 collections, which keep vendor records up to date for approvals, payments, and 1099 reporting.
5. In BILL vs Melio vs Zenwork Payments for CPA firms, how should a firm decide what to standardize?
If your requirement is basic, small, and lightweight payment, then you can consider trying Melio. BILL is ideal for a large volume of invoices and international payments. On the other hand, Zenwork Payments is a great option if your main requirement is compliance.
6. When evaluating accounts payable automation tools for payers, what capabilities matter most as volume grows?
Enforced vendor data capture, configurable approvals, reliable bulk payment runs, accounting sync, and 1099 compliance are some of the major capabilities a software should have so operations stay consistent, and year-end work doesn’t turn into chaos.
Conclusion
Each of the solutions we mentioned above is best in its own use cases. If you are looking to make a choice between Melio, BILL, and Zenwork Payments, you should not look at how big their feature columns are. The best way to find the right automated AP solution for your organization is to first start with understanding what exactly you need. If your organization is only making small payments domestically, then Melio is built for that. On the other hand, if your organization handles a large volume of invoices and makes international payments, then your go-to choice should be BILL.
But if your organization does most of its business domestically and focuses on compliance, then Zenwork Payments should be your go-to choice. The platform is built for small and mid-sized businesses and CPA firms and supports multi-entities as well. Before making any choice, you should thoroughly review the software’s integration support and ensure that there are no hidden fees.
Ready to upgrade AP? Connect vendor onboarding, payments, and 1099 workflows in one system with Zenwork Payments.