Tipalti is one of the leading accounting and payment management applications on the market. In our current Tipalti review their service received a high score which makes one of the best solutions in its category. Our review team was really impressed by the app, but it is definitely not the only solution of this type. In this article, we compare it against its key competitors: Bill.com, Avidxchange, and PayPal. If you’re not sure which one will work best for your company needs then we hope after reading our evaluation of Tipalti competitors making the right choice will no longer be a problem.
More than being another hot trend in the finance world which rises and falls quickly, Tipalti firmly holds the leadership among holistic corporate solutions because of reliable ability to really optimize global mass payments. The software is capable of smoothly managing even the most complex payment operations. This smart system meets all national and international taxation standards and requires minimal human integration. At the moment, the app helps users make payments across 190 countries and in 120 currencies, which explains how its user base got to include 250,000 payees. If you want to learn more about the platform you may want to read our Tipalti pros and cons article too.
However, not everything about Tipalti is related to payment automation. As we are about to see later in the article, Tipalti uses a variety of mechanisms to eliminate downstream difficulties, and reports with the same capacity analytic tools do. You can also make use of their free demo to learn more about how the service actually works and what it has to offer. You can easily see Tipalti free demo here.
Bill.com is another popular accounting system which redefined A/P and A/R creation solutions, and facilitated payments across several different channels. Its power lies mainly in the possibility to streamline payment and provide mobile access for users looking to pay on the go. Our experts liked it because of its capacity to cut payment time, and the enterprise-grade fraud protection mechanism which makes it ideal for corporate payments. Unlike Tipalti, Bill.com specializes in serving individuals, and small and medium businesses, and is available only for payees in the United States of America.
AvidXchange is one of the best Tipalti competitors when it comes to accounting and invoicing systems. It is a SaaS platform that makes it possible for users to access their payment data from any location or device. Similarly to Bill.com, AvidXchange relies on its integration with more than 100 accounting systems to pave the way from invoice receipt to payment execution, and doesn’t have a steep learning curve users should worry about. What our experts agreed to be key benefit of this system is its outstanding customer support. However, just like Bill.com, AvidXchange is focused on individuals and mid-size businesses, and it won’t allow you to make payments outside the United States.
The last product we will compare here is PayPal, which we believe all users are familiar with. PayPal got to be the symbol of private money transfers and automation and popularized the concept of financial details-free payment at the time when nobody thought that was possible. It is still capable of managing payments in the business environment, though and because of its wide reach and popularity we decided to include it in our comparison. Throughout the years, PayPal imposed itself even more with the scalable and secure payment technology, and remained one of the most flexible payment systems that cut the time necessary for the transfer to be completed. The base of potential payees is similar to the one of Tipalti, with the main difference that PayPal covers slightly less geographies.
Cutting edges here is rather difficult, as all programs are designed with a similar model, and tackle more or less the same target groups. Our experts highlighted Tipalti here since it is equally suitable for individuals as it is for large enterprises, with a particular focus on the large number of geographies it serves.
PayPal is also pretty streamlined when it comes to the payment automation question, but it was not designed to meet taxation compliance the way Tipalti does, and that’s the main reason why many companies prefer to rely on an accounting rather than a simple pay-as-you-go solution.
Bill.com and AvidXchange are powerful money transfer systems as well, but are at the same time restricted to individuals and small/medium businesses located in the USA.
A great starting point when comparing the payment automation capacity of all products is to check whether they are mutually inclusive. Being aware of the fact that Tipalti integrates PayPal’s mass payment capacity, for instance, readily answers the question which of the two is more powerful. Basically, Tipalti delivers payment automation the way all other mentioned products do, but does so in a secure, integrated, and easy to manage way. It is in fact a great online solution for payout processing and reconciliation, where you can manage and resolve issues, rely on national/international regulatory compliance, affiliate and track processing, generate separate forms, choose locations and currencies, and most of all – minimize fraud. Basically, it adds all the bells and whistles PayPal needs to take payment automaton to a genuine enterprise level, because with it you can pay via 6 different methods (PayPal itself, Prepaid Debit Cards, Wire, US ACH, Global ACH, and Local bank transfer for 190 countries).
The third position here would belong to AvidXchange, as it comprises, in a smaller nutshell, the simplicity of PayPal and the power of Tipalti. A distinctive advantage compared to these two is invoice submission, which helps capture all data in your system and manage it from there. As you will find out later in this article, it has a distinctive reporting capacity which minimizes error caused by manual input, and keeps an eye on all bills, accruals, approvals, or pending payments. The reason why we couldn’t rate it higher are its territorial and user-profile limitations, meaning that you will most likely need to replace this system once your business starts growing.
Finally, Bill.com was somewhat difficult to compare in this case, as its strong side lies in its fact managing payment documentation. It can be the perfect catch for a US-based medium business’s accounts payable/receivable management, accompanied with an ePayment system which streamlines its financial operations. It will manage your cash flow and routing process, and save the evidence in a neat database, and even schedule your bills. However, it will only allow you to pay through ACH, PayPal, and Check.
The two leaders in this section are Tipalti and AvidXchange, the first one providing accurate and detailed payment reconciliation reports where all tax regulations and standards are considered, and the second being a master of property reports, accruals, and user and workflow reports. What is really unique about Tipalti and must therefore be mentioned here are its 1099 forms and 1024-S tax reports. Bill.com on the other hand easily schedules payments and stores documents for further analytic processing, while PayPal offers the most modest invoice and reporting templates for individual payments only.
There is no doubt Tipalti is the best choice here, due to its capacity to respond to more than 190 counties’ taxation regulations and international standards. Currently, this KPMG-certified app collects both W-8 and W-9 use forms to withhold payment from non-compliers, and every payment there is scanned against US and international blacklists to make sure there will be no fines or administrative breaches. The system is also FATCA compliant, and uses VAT and ID information to empower storage and self-billing for non-US users. Payment data is SSL encrypted and transfer is secure, but that hardly comes as a surprise – the requirement is compulsory for all money transfer and payment automation systems, and you can therefore count on it being included in the PayPal, Bill.com, and AvidXchange case as well.
In case of integrations our experts decided once again in favor of Tipalti, as it is the only open API system from the four which also has valuable analytic and ERP integrations ready and disposable. You can connect it automatically to HasOffers, NetSuite, QuickBooks, Oracle, and other popular business systems. The most comparable app in this regard is AvidXchange, which can also be considered a leader depending on the type of flexibility you’re looking for: with AvidXchange, you will have 100 premade integrations (QuickBooks, SAP, MRI, Microsoft Dynamics, Sage, and others), but you won’t be in control of the open API to build integrations of your own.
Bill.com is also considerably well integrated (Intacct, Xero, QuickBooks, and so on), but doesn’t have open API either. The same thing is missing from PayPal as well, where coding and connecting it to other apps is complicated rather than simple and intuitive.
There is hardly any chance to choose a clear leader in terms of pricing, as each product is priced differently. Tipalti, for instance, doesn’t make a distinction between the number of users and offers a flat $750/month package for as many payees, partners, suppliers, or countries you want to include.
Bill.com limits usage of key components depending on the size of your business, and offers 4 different user packages starting from $19 per month.
AvidXchange is priced by quote only and depends on the scale and industry of your business, while PayPal starts from $5 (charged per transaction), and offers specific subscriptions for loyal users obtained by request.
After comparing the four apps from all key perspectives, we concluded that Tipalti deserves to be targeted as the most universal and reliable accounting and payment automation solution. It offers the largest scope of payment automation features, accompanied by strong management, tax compliance, security precautions, and advanced reporting. At the same time, it suits all user profiles across 10 different countries, and executes payments via six different methods, in a variety of currencies. It also offers a good free demo that will take your on a tour showing all key components of the service first. You can easily see Tipalti free demo here.
We do believe, however, than all other mentioned apps are worth considering, especially if you’re a small/medium US-located business looking to speed up invoicing and to manage receivables. Bill.com and AvidXchange will make this happen with a variety of useful features, and won’t even cost an arm and a leg to get there. PayPal, on the other hand, can’t do much for accounting necessities, but it is certainly the most streamlined solution for transferring money for private or professional purposes.
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