Tipalti: Pros & Cons of Award-Winning Accounting Software

tipaltiLOur review team decided to take a closer look at one more popular accounting and payment management system, acknowledged by many for a set of unique, reliable features and an impeccable accuracy. The system is called Tipalti, and it is quite possible an accounting & finance delight that many of you may have failed to discover so far.  We decided to analyze all the major Tipalti pros and cons to give you a solid overview of what the software can do for you and which unique features it brings to the table. 


Introduction To Tipalti

The service has already been featured in a Tipalti review on our site and it made a big impression with its high quality paired with intuitive simplicity. The software is very flexible, offers affordable pricing for their services, and a useful free demo is also available, so you can check how it works first. You can easily see Tipalti free demo here.

But what is it that makes Tipalti so powerful? In the era of smooth cloud accounting, it often requires of us to be extremely selective to pick at least one advantage of a system compared to a host of similar ones, but Tipalti handles that in an unexpectedly good way. Rather than being just another holistic system, Tipalti is a full pack for automating global mass payment operations, which streamlines payments to entities in more than 190 countries. It will govern the complete workload involved from onboarding to tax compliance, making sure at the same time that your employees won’t have to reinvent the wheel to use it.

Drilling deeper into the nature of this system, our experts noticed it has exactly what it takes to be applied in almost every business environment. It doesn’t matter whether your business is small or enterprise-grade, and the industry you operate in won’t affect it either. Functionality is simply uncompromised, especially in Network Economy companies with complex payment operations, involving online marketplaces, crowdsourcing, crowdfunding, ISPs, digital goods, and so on. We also recommend it because of its reliable capacity to serve more than 250,000 payees, and process over $1 billion in international bank transfer per year which should be more than enough for most users. The price for the service is affordable and multiple integrations are also included to let you use it effectively in combination with other apps adopted by your company.

Key Advantages of Tipalti.

National & international standard compliance

Tipalti works with a specifically designed Supplier Manager Portal, where taxation data is imported and controlled by finance managers themselves. Operations are conducted based on that data, while the Remittance Validation Engine monitors over 25,000 national and international standards to make sure staff is not overwhelmed with rule adhering, and that no provision is being breached. What is more, Tipalti is a KPMG-certified app which can withhold payment for non-compliant payees, having incorporated both W-8 and W-9 US tax standards. Consequently, the system is OFAC and FATCA adjusted, and depicts taxes automatically to produce more than 1099 forms per year. Non-US companies can also benefit from it, as it uses their VAT and ID information to make sure there is no calculation error.

Here's how Tipalti looks in action.

Here’s how Tipalti looks in action.

Payment is made easy

As you can guess, this is an ideal solution for supplier control, but it is also worthwhile for its easy and error-free payment management system. You get to make payments in 190 countries, thanks to features such as payment currency selection, payment processing method selection, and automated regulatory compliance. At the moment, the system operates with the six main payment methods (local bank transfer, US ACH, Wire, PayPal, Global ACH, and Prepaid Debit Cards), and offers a unique suite for financial control, involving payer/payee splitting based on their payment method, advanced reconciliation, audit trails, threshold setting, signatory rights, and much more.

A whole new level of payment automation

Tipalti development team actually revolutionized the idea of how payment automation should look like, by providing far more benefits than just saving time. In fact, more than the half of your payout and reconciliation procedures across 190 states can be automated, and data can be normalized across any payment you’re using (the system processes international bank and wire transfer, PayPal, and a variety of other online payment solutions). As a result, you will be able to feed it directly to any ERP app you’re currently using. That’s a really huge advantage.

Out-of-the-box reporting & analytics

I think we can all agree that any system that collects, stores, and transforms finance data would be useless without an equally good reporting system. Tipalti team surely knows that, and they decided to cover users with a really magnificent set of analytic tools. You can use it to prepare outstanding 1042-S tax reports and put self-billing in action, or simply benefit from the automatically generated payment reconciliation report. Unlike similar accounting systems, Tipalti disparates payment methods, strategies, currencies, and applicable rules all by itself. Regional considerations are also taken into account, and the report can be adjusted to them with minimal human intervention.

A plethora of features you didn’t expect

Somewhere on the way towards cloud-based accounting, we lowered expectations believing there is no system that is absolutely secure, or has an impeccable uptime. Tipalti arrived on the scene just as it became imperative to change this attitude, and convinced our experts that end-to-end payment automation is still possible. There are simply too many extra features packed into the system to analyze them all, but you can count on such useful tools as: ad network performance tracking integration, affiliate payment processing & program management, customer/vendor processing, payment processing issue resolution, supplier management, secure payment, and many more. You can find more information about Tipalti features in our detailed review of the software.

Just the right integrations

The rationale behind investing in a new accounting system is usually because you want more flexible, able to use the system in all software environments, and replace the insufficiently effective app that may have stopped you from progressing in other areas. Tipalti made sure you will have just the right integrations to make it work in sync with your current business environment, including a variety of popular ERP and analytic systems. HasOffers by Tune, NetSuite ERP, Cake, Paladin, QuickBooks, and HitPath are only few of the premade integrations available. You can also benefit from Tipalti’s open API-approach towards integrations, though adapting it to less-popular applications may require some basic coding abilities.

Years of accounting experience

Tipalti system ii developed by an experienced company, and a leader in the global supplier payment automation space. This experience is clearly visible in almost all aspects of the product. It is a really universal solution suitable for all types of payment operations. We estimate that it can allow you to save as much as 25% of the time you typically need to finish the accounting-related tasks

Disadvantages of Tipalti

In case of Tipalti we found few reasons to be discontent. We did spot a couple of issues minor issues though, that we believe could be reconsidered or improved. 

Lack of immediate check images

Some users may find it annoying to be unable to generate their own check image to examine, it can be easily requested from the support team, but it still can contribute to a potential time inefficiency. The Tipalty team, however, claims to be working on the issue already.

It takes time to explore its functionality

Tipalti is somehow paradoxical in the sense of usability, as it has one of the simplest and user-friendliest interfaces you will ever use, but at the same time it hides an admirable capacity to handle complex payment operations. It is because of the segregation and categorization of available options that some users don’t always familiarize with its power right away, and may take time to trigger all of the unique capabilities Tipalti has to offer.

There is no live support

There is no live chat support on Tipalti’s official website. Still, we’d say this is not much of an issue, because their support team can easily be contacted via phone, email, or tickets, and we found it responds almost instantly providing you all the expertise or help you need. You can also count on numerous free training options and materials to explore the full functionality of the system before so it should help you reduce potential problems after implementation to a minimum.


All things together, our analyis of Tipalti pros and cons shows that the app is a really smart and reliable payment automation option that can be useful to almost every business type and size. It is easy to learn and offers a wide range of tools that allow companies to user their time more efficiently and handle more operations with little effort. If you want to learn more about the software and how it can benefit your company we recommend a great free demo they offer to potential clients. You can easily see Tipalti free demo here.

Daniel Epstein

By Daniel Epstein

Daniel Epstein is a senior financial research analyst at FinancesOnline and the architect behind our Fintech and ERP content division. His main areas of expertise are blockchain technologies, cryptocurrencies, and the use of biometrics in fintech solutions. His work has been frequently quoted by such publications as Forbes, USA Today, Entrepreneur, and LA Times. With more than 1,800 solutions scrutinized in the last 5 years spent on our team he always prioritized offering readers an unbiased perspective on modern financial technologies.

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