Your vendor payment software is way more important for your organization than you might have thought. In the last year alone, 61% of late vendor payments were caused by invoice errors and small mistakes like missing information or manual process delays. These late payments are one of the biggest reasons behind the bad vendor relationship. So, if you are still managing your vendor payments data in Excel and juggling invoices in email threads, it might be time to switch to better vendor payment software!
But which vendor payment software is best for your business or organization? How are these vendor payment software (vendor bill payment tools) different from each other?
To help you answer these questions and narrow down your options, we’ve curated the top 5 vendor payment software in this article.
1) Zenwork Payments
Zenwork Payments is an AP-first solution to automate vendor payments and streamline invoice intake and speed up approvals. The platform handles vendor onboarding, offers flexible payment options and a secure vendor portal while supporting 1099 compliance workflows. It saves time, reduces errors and ensures IRS readiness while simplifying vendor management.
Key features
- Advanced OCR with capabilities of scanning from emailed or drag-and-drop invoices
- Simplified vendor onboarding
- W-9 collection and real-time TIN matching
- Multiple payment options
- Auto-drafted 1099s plus eFiling capabilities
- Support for major accounting software
Pros
- Great option, if your focus is on compliance and automating vendor and contractor payments
- Transparent pricing and no hidden fees
- Dedicated xForce vendor portal, so you don’t always have to answer the vendor follow-ups about “Where’s my payment?”
- Complete visibility for vendors
Cons
- Best suited for the teams that are willing to modernize their AP process
- Might be overwhelming with features for a team whose focus is not 1099 compliance
Pricing
- Pricing starts at $19.99 and $2 per billable vendor.
2) BILL
BILL (formerly Bill.com) is a widely adopted automated AP and AR platform popular amongst the SMBs and accounting firms for its streamlined process of approvals, document collections, massive vendor network, and integrations with major accounting and ERP software.
Key features
- Streamlined customizable workflows
- Transparent and tier-based plans
- Massive vendor network
- Multiple payment options
- Simple approval workflows with user roles
Pros
- Easy-to-understand system and interface
- Ability to handle scaling SMB’s high volume
- Integration support for major accounting and ERP software
Cons
- Seat-based pricing
Pricing
- Essentials: $49/user/month, Team: $65/user/month, Corporate: $89/user/month, and custom for enterprises.
3) Tipalti
Tipalti is a cloud-based AP platform, popular for its global payables and mass payments. The platform is built for scale for multi-entities, SMBs, and enterprises for their international vendor payments, and its ability to handle high transaction volumes.
Key features
- Streamlined invoice processing and approval routing
- 50+ payments methods for 200+ countries in 120+ currencies
- Separate vendor portal (supplier hub)
Pros
- It’s ideal for companies that are looking for mass international payments.
- The platform has enterprise-grade scalability.
Cons
- The platform may feel overly complex because of its number of features for international payments, especially for teams only focused on domestic US-based business.
Pricing
Tipalti has tier-based pricing starting with $99/month, $199/month for the advanced tier, and quote-based for enterprises.
4) Melio
Melio is a cloud-based AP (and AR) automation platform focused on SMBs. The platform’s easy-to-use interface makes it highly adoptable. With a simple interface, Melio also has multiple payment options, simple and customizable workflows, and unique features like “pay by card” even if the vendor does not accept cards.
Key features
- Melio allows businesses to pay vendor invoices using a business credit card, plus you can extend the cash flow by up to 45 days.
- Customizable approval workflows with batch payments and autopay
- Status tracking for scheduled and sent payments
Pros
- Good option for small and lightweight payments
- Flexible payment options
- Transparent pricing
Cons
- The base tier comes with limitations.
- Less focused on detailed audit and compliance
Pricing
- Melio has tier-based pricing, with the core tier starting at $25/month and the unlimited tier at $80/month.
5) Ramp
Although Ramp is best known for its spend management, the platform is also a good option for AP and payables features. Ramp focuses on speeding up invoice intakes, the approval process, and vendor payments. The platform is suitable for companies that are looking for a modern and centralized way to manage their payables and reduce manual processes.
Key features
- Invoice capture and coding automation
- Customizable approval workflows, duplicate bill detection, and vendor management
- Multiple payment options with ACH, check, card, and wire transfer
- Integrations with multiple ERPs and accounting software
Pros
- Strong for card-based spend visibility and internal controls
- Modern, easy-to-understand interface
Cons
- Comparatively new in AP and vendor payments domain
- Does not have native support for 1099 compliance and tax workflows
Pricing
- Ramp has a tier-based pricing with Ramp Plus starting at $15 per user per month, while quote-based pricing is available for enterprise.
FAQs
1. What does vendor payment software do?
Vendor payment software helps your AP teams in moving the invoices and approvals and making payments in a single system, so your organization can pay your vendors on time and accurately.
2. How can vendor payment software help AP teams save time?
Vendor payment software reduces your team’s manual entries, cuts down on time-consuming email conversations, and speeds up payment status, all in one place. This frees your AP teams’ time, so they can focus more on strategy rather than repetitive tasks.
3. How does Zenwork Payments support 1099 compliance?
Zenwork Payments is a compliance-first automated AP solution. The system automates 1099 compliance by capturing W-9s, performing real-time TIN matching, and auto-drafting 1099s at the time of payment, saving you from costly penalties and keeping you compliant with the IRS.
4. Is vendor payment software useful for contractors as well as vendors?
Absolutely, in fact, many platforms like Zenwork Payments support both vendors and contractors, letting the organizations manage the payments and tax data consistently in a single system.
Conclusion
The definition of “BEST” differs from team to team. In terms of “best vendor payment software for business growth,” for your business, it depends on what you’re looking to optimize. Each of the solutions we mentioned above is best for its own use case. If your priority is advanced and modern vendor payment software that supports 1099 compliance while making payments in one workflow, then Zenwork Payments should be at the top of your list. The platform is built for an end-to-end AP-to-1099 workflow, from invoice capture to auto-drafting of 1099s.
On the other hand, if your priority is international payments, you can choose from well-established solutions like BILL and Tipalti. If your organization is looking for a software solution for small and lightweight payments with a slick, modern, and easy-to-understand system while also allowing you to make card-based payments, then you have the options of Melio and Ramp.
Overall, you shouldn’t decide on vendor payment software for your organization based on how big the list of features is or how cost-friendly the software is; you should make your choice based on what your organization needs.
Ready to streamline your AP payments, approvals, tracking, and 1099s?