A complete guide to accounts payable software for Australian SMEs

Manual invoice processing and payment follow-ups drain valuable time, increase the risk of mistakes, and can seriously disrupt your cash flow. For Australian SMEs operating in today's competitive landscape, accounts payable software has shifted from nice-to-have to must-have. It's essential for optimising financial operations and improving your bottom line.

Do you want to save time, improve your cash flow, and build stronger supplier relationships? The solution lies in embracing automation.

In this guide, we'll explain what accounts payable software is, why it's crucial for your business, how to choose and implement the right solution, and how Budgetly can help you optimise your accounts payable process. Whether you're drowning in paperwork or simply looking to modernise your financial operations, this comprehensive resource will show you the path forward.

If you're short on time, here’s everything you need to know in under a minute:

• Accounts payable software automates how Australian SMEs capture, approve and pay invoices so you spend less time on data entry and chasing payments, and more time managing the business.
• Automation gives you real-time visibility over what you owe and when, improves cash flow, reduces errors and late fees, and helps you build stronger, more reliable supplier relationships.
• The guide explains who AP software is best suited for, what features to look for (like Xero integration, OCR, 3-way matching, payment scheduling and GST/BAS support), and gives you a practical step-by-step implementation roadmap.
• Budgetly sits on top of this by combining AP automation with expense tracking, virtual cards and Xero integration so Australian SMEs can control all spending, approvals and reporting in one connected platform.

1. What is accounts payable software and why do you need It?
2. Why accounts payable software is a game changer for Australian SMEs
3. Who should use accounts payable software?
4. What to look out for when choosing accounts payable software
5. How to implement accounts payable software in your business
6. Essential features of accounts payable software for Australian businesses
7. Common challenges in accounts payable and how software solves them
8. How Budgetly enhances your accounts payable process
9. Your blueprint for smarter financial management
10. Frequently asked questions
     

What is accounts payable software and why do you need it?

Accounts payable software automates and streamlines the process of managing supplier invoices, approvals, and payments. By eliminating manual data entry and approval bottlenecks, it helps ensure timely payments, better financial visibility, and reduces errors.

What it does

• Invoice capture: Automatically extracts data from supplier invoices, whether they arrive by email, mail, or electronic data interchange
• Approval workflows: Routes invoices to the appropriate managers for authorisation based on your business rules
• Payment processing: Schedules and executes payments according to terms and priorities
• Reporting and analytics: Provides real-time insights into outstanding payables, cash flow forecasts, and spending patterns

Why you need it

• Manual data entry errors: Typing invoice details into spreadsheets or accounting systems leads to mistakes that cost time and money to rectify.
• Approval delays: Paper invoices sitting on desks or lost in email chains mean late payments, damaged supplier relationships, and missed early payment discounts.
• Poor visibility: Without centralised tracking, you can't see what's due when, making cash flow management nearly impossible.
• Compliance risks: Manual processes make it harder to maintain audit trails and meet Australian tax obligations like GST reporting.

Why accounts payable software is a game changer for Australian SMEs

Improve cash flow, reduce costs, and strengthen supplier relationships

The impact of implementing AP software goes far beyond simply processing invoices faster. For Australian SMEs, the benefits translate directly to improved financial health and competitive advantage.

Cash flow management

With real-time visibility into upcoming payment obligations, you can plan your cash flow with confidence. AP software shows you exactly what's due and when, allowing you to prioritise payments strategically, take advantage of early payment discounts, and avoid costly late fees.

Reduced administrative burden

Manual invoice processing can consume hours of your finance team's time each week. Automation frees up these valuable resources for strategic tasks like financial analysis, budgeting, and business planning. Small teams, in particular, benefit from doing more with less.

Supplier relationship management

Timely, accurate payments build goodwill with your suppliers. This translates to better payment terms, priority service during busy periods, and potential volume discounts. In a competitive market, these advantages can make all the difference.

Manual vs. Automated AP: The comparison

The numbers speak for themselves. Automation doesn't just improve efficiency – it transforms your entire accounts payable operation.

Supplier Relationship ManagemenTimely, accurate payments build goodwill with your suppliers. This translates to better payment terms, priority service during busy periods, and potential volume discounts. In a competitive market, these advantages can make all the difference.

Access free Budgetly tools to reduce admin and improve expense tracking.

Who should use accounts payable software?

Ideal users

Growing businesses: If you're handling multiple suppliers and experiencing increasing invoice volumes, manual processes simply can't scale. Accounts payable software grows with you, handling hundreds or thousands of invoices with the same efficiency.

Businesses with limited finance teams: Small finance teams often struggle to keep up with growing workloads. Accounts payable software multiplies their effectiveness, allowing two people to do the work of five.

Cash flow-conscious businesses: If managing working capital is critical to your operations, accounts payable software provides the visibility and control you need to optimise payment timing and maintain healthy cash reserves.

Multi-location businesses: Companies with multiple branches or offices benefit from centralised invoice management and standardised approval processes across all locations.

Businesses seeking better supplier terms: If you want to negotiate early payment discounts or improved terms, demonstrating reliable, timely payment through automated accounts payable software strengthens your position.

When it might be less critical

Micro-businesses with very few invoices (perhaps 5-10 per month) and limited supplier interactions may not see immediate returns on investment. However, even these businesses should consider accounts payable software as they plan for growth. Implementing systems early prevents the painful transition later when manual processes become unmanageable.

What to look out for when choosing accounts payable software

Selecting the right accounts payable software requires careful consideration of your business needs and future growth plans. Here are the key factors to evaluate:

Integration with your accounting system

Your accounts payable software must integrate seamlessly with your existing accounting platform. For Australian businesses, Xero integration is particularly important, as it's the most widely used accounting software among SMEs. Ensure the integration is bidirectional, automatically syncing invoice data, payments, and reconciliation information.

Automation capabilities

Look for comprehensive automation features:

• Optical Character Recognition (OCR): Automatically captures data from invoice images and PDFs
• Smart data extraction: Learns from your patterns to improve accuracy over time
• Automated matching: Compares invoices to purchase orders and delivery receipts
• Payment scheduling: Sets up recurring payments for regular bills like utilities and subscriptions

Customisable approval workflows

Every business has unique approval requirements based on invoice amounts, departments, and supplier relationships. Your accounts payable software should allow you to configure multi-level approval workflows that match your organisational structure and financial controls.

Reporting and analytics

Real-time dashboards and comprehensive reporting capabilities are essential. Look for:

• Cash flow forecasting based on scheduled payments
• Spend analysis by supplier, category, and department
• Outstanding payables aging reports
• Early payment discount tracking
• Budget vs. actual comparisons

Compliance and Security

Australian businesses must comply with GST regulations, BAS reporting requirements, and tax documentation standards. Your accounts payable software should:

• Automatically calculate and track GST
• Generate BAS-ready reports
• Maintain complete audit trails
• Provide secure data storage with Australian-based servers
• Support multi-factor authentication and role-based access controls

Cost vs. Value

Understand the total cost of ownership:

• Monthly or annual licence fees
• Per-user charges
• Transaction limits
• Additional costs for premium features
• Implementation and training costs

Balance these costs against the tangible benefits: time saved, errors reduced, and early payment discounts captured.

Essential features checklist

✓ Xero or other accounting software integration
✓ OCR and automated data capture
✓ Customisable approval workflows
✓ 3-way invoice matching
✓ Payment scheduling and reminders
✓ Real-time reporting dashboards
✓ GST compliance and BAS reporting
✓ Mobile access for approvals
✓ Supplier portal capabilities
✓ Audit trail and document storage
✓ Australian-based support team

How to implement accounts payable software in your nusiness

Successful implementation requires planning, clear objectives, and team buy-in. Follow this step-by-step guide to ensure a smooth transition.

Step 1: Audit current processes (week 1)

Before implementing new software, understand your current state:

• Document your existing AP workflow from invoice receipt to payment
• Track how long each step takes
• Identify bottlenecks and pain points
• Calculate your current cost per invoice
• Survey your team about frustrations and improvement ideas

Step 2: Choose the right software (weeks 2-3)

Based on the criteria outlined earlier, evaluate your options:

• Request demonstrations from shortlisted providers
• Test the user interface with your team
• Verify integration capabilities with your current systems
• Check references from similar Australian businesses
• Review service level agreements and support options

Step 3: Define clear objectives (week 3)

Set measurable goals for your implementation:

• Reduce invoice processing time by 50%
• Achieve 95% on-time payment rate
• Decrease cost per invoice by 60%
• Capture all available early payment discounts
• Eliminate duplicate payments

Step 4: Configure and integrate (weeks 4-5)

Work with your software provider to:

• Set up supplier records and payment details
• Configure approval workflows and spending limits
• Integrate with your accounting system and bank accounts
• Customise reporting templates
• Import historical data if required

Step 5: Train your team (week 6)

Comprehensive training ensures adoption and success:

• Provide role-specific training for AP staff, approvers, and managers
• Create quick reference guides and video tutorials
• Establish a point person for questions and troubleshooting
• Schedule follow-up training sessions after go-live

Step 6: Monitor performance (ongoing)

Track your progress against objectives:

• Review key metrics weekly for the first month
• Gather feedback from users and address concerns promptly
• Fine-tune workflows based on actual usage patterns
• Celebrate wins and share success stories with the team

Modern accounts payable software provides dashboards that make tracking these improvements straightforward and data-driven.

Implementation timeline

Essential features of accounts payable software for Australian businesses

Understanding which features deliver the most value helps you maximise your investment in AP software.

Invoice processing automation

Modern accounts payable software uses OCR technology to extract data from invoices automatically, eliminating manual typing. The system learns from corrections, improving accuracy over time. This feature alone can reduce processing time by 80% or more.

Business impact: Staff can process 10-15 invoices in the time it previously took to handle one manually.

3-way matching

The software automatically matches invoices to purchase orders and goods receipts, flagging any discrepancies for review. This prevents overpayment, duplicate payments, and fraud.

Business impact: Reduces payment errors by 90% and strengthens financial controls.

Custom approval workflows

Configure multi-level approval chains based on invoice amount, supplier, department, or GL code. Approvers receive notifications and can authorise payments from their mobile devices, eliminating delays.

Business impact: Reduces approval time from days to hours while maintaining proper financial controls.

Payment scheduling

Set up recurring payments for regular bills and schedule one-time payments to optimise cash flow. The system can automatically prioritise payments to capture early payment discounts while respecting available cash balances.

Business impact: Capture thousands of dollars in annual discounts and eliminate late payment fees.

Reporting and analytics

Real-time dashboards provide instant visibility into:

• Outstanding payables by due date
• Spend by supplier, category, and department
• Cash flow forecasts based on scheduled payments
• Budget vs. actual analysis
• Supplier payment performance

Business impact: Make informed financial decisions based on current data rather than month-old reports.

Supplier portal

Give suppliers self-service access to check payment status, submit invoices electronically, and update their details. This reduces inbound queries and improves supplier satisfaction.

Business impact: Reduces supplier enquiries by 60% and strengthens relationships.

Feature comparison: Problem solving

Common challenges in accounts payable and how software solves them

Challenge: Late payments

The problem: Invoices get lost, approvals are delayed, or payment runs are forgotten. Late payments damage supplier relationships and incur penalty fees.

The solution: Accounts payable software tracks every invoice from receipt to payment, sends automated reminders to approvers, and can even schedule payments automatically based on terms. You'll never miss a due date again.

Challenge: Invoice discrepancies

The problem: Duplicate invoices slip through, pricing doesn't match purchase orders, or quantities are incorrect. These errors lead to overpayment and strained supplier relationships.

The solution: Automated 3-way matching catches discrepancies before payment, flagging them for review. The system maintains a complete history of all invoices, making duplicates easy to spot.

Challenge: Data entry errors

The problem: Manual typing leads to mistakes in amounts, account codes, or supplier details. Errors require time-consuming corrections and can distort financial reports.

The solution: OCR technology eliminates manual data entry. The system learns from your coding patterns, automatically suggesting the correct GL accounts and cost centres for each supplier.

Challenge: Lack of visibility

The problem: Without centralised tracking, you can't answer basic questions: What do we owe? When is it due? Can we afford this purchase? This uncertainty makes cash flow management impossible.

The solution: Real-time dashboards show exactly what you owe, when payments are due, and how this impacts your cash position. You can forecast weeks or months ahead with confidence.

Challenge: Fraud risk

The problem: Manual processes create opportunities for fraud through fake suppliers, inflated invoices, or unauthorised payments.

The solution: Accounts payable software enforces segregation of duties, maintains complete audit trails, and requires proper authorisation for every payment. Automated matching catches suspicious patterns that might escape human notice.

Challenge: Compliance and audit burden

The problem: Maintaining proper documentation and audit trails is time-consuming. Come tax time or audit season, gathering records becomes a major project.

The solution: Accounts payable software automatically stores and indexes every document. Complete audit trails show who did what and when. GST is calculated automatically, and BAS reports are ready at the click of a button.

The impact of automation: Real results

Research shows that businesses implementing accounts payable automation experience measurable performance gains across efficiency, cost, and accuracy metrics:

• Up to 75% reduction in invoice processing time – businesses that implement AP automation streamline workflows and approvals, cutting manual handling dramatically (NetSuite).
  
  
• Up to 70% time savings and 30% cost reduction – automation reduces operational costs and accelerates end-to-end processing (Quadient).
  
  
• Up to 80% decrease in data entry errors – automated systems eliminate manual input errors and improve data accuracy rates up to 99% (Kefron).
  
  
• Up to 60% improvement in on-time payment rates – automation helps businesses meet supplier deadlines, strengthening relationships and avoiding late fees (Payouts).
  
  
• Up to 50% reduction in processing costs per invoice – by removing manual approvals and paper-based tasks, companies lower AP overhead (NetSuite).
  
  
• Up to 30% increase in early payment discounts captured – faster invoice approvals enable businesses to take advantage of supplier incentives (Quadient)

How Budgetly enhances your accounts payable process

Budgetly's expense tracking app integrates directly with your accounts payable software, capturing business expenses in real-time. Employees can photograph receipts on their phones, and the system automatically extracts the data and routes it for approval. No more lost receipts or month-end reconciliation headaches.

Real-world impact: A Sydney-based marketing agency reduced their month-end close process from 5 days to 1 day by integrating Budgetly's expense tracking with their AP workflow.

Virtual card for supplier payments

Budgetly's virtual card solution makes supplier payments easier, more secure, and more transparent. Each card can be assigned spending limits and categories, with transactions automatically syncing to your accounting software. You'll have complete visibility over who's spending what, where, and when.

Benefits include:

• Enhanced security with unique card numbers for each supplier or purpose
• Automatic transaction categorisation and coding
• Real-time spending notifications
• Simplified reconciliation with direct Xero integration
• Cashback or rewards on business spending

Seamless xero integration

As one of Australia's most popular accounting platforms, Xero integration is essential for efficient accounts payable software implementation. Budgetly syncs seamlessly with Xero, eliminating double data entry and ensuring your accounts are always up to date.

Invoice data flows automatically from Budgetly to Xero, payments are recorded instantly, and reconciliation happens in the background. Your accountant will thank you.

Comprehensive expense management

Beyond AP, Budgetly's expense management software consolidates your entire financial management process into one integrated solution. From receipt capture to payment execution to financial reporting, everything works together seamlessly.

This integration means:

• Single source of truth for all financial data
• Consistent approval workflows across all spending types
• Unified reporting across AP, expenses, and payments
• Reduced software costs by replacing multiple point solutions

Your blueprint for smarter financial management

The case for accounts payable software is clear: Australian SMEs that embrace automation save time, reduce errors, improve cash flow, and strengthen supplier relationships. In an increasingly competitive business environment, these advantages are essential for sustainable growth.

The journey from manual processes to automated efficiency doesn't have to be complicated. By following the implementation roadmap outlined in this guide, choosing accounts payable software with the right features for your business, and partnering with a provider who understands Australian business needs, you can transform your AP function in weeks, not months.

Budgetly's integrated approach to financial management, combining AP automation, expense tracking, virtual cards, and Xero integration, provides Australian SMEs with a complete solution designed specifically for the way you work. No more juggling multiple systems or struggling with software built for overseas markets.

Take the next step

Ready to revolutionise your accounts payable process? Request a demo of Budgetly's accounts payable software solutions and see first-hand how automation can transform your business. Our team will show you exactly how Budgetly can address your specific challenges and deliver measurable results.

For businesses ready to take their financial management even further, explore our resources on deeper dive into AP automation and discover how understanding your Statement of Financial Performance can unlock advanced budgeting and forecasting capabilities.

The future of accounts payable is automated, integrated, and intelligent. The question isn't whether to make the change, it's how soon you'll start reaping the benefits.

Frequently asked questions about accounts payable software

What is accounts payable software?

Accounts Payable Software is a digital solution that automates and streamlines the process of managing bills, invoices, and vendor payments. Unlike manual AP processes that involve paper invoices, approval bottlenecks, and disjointed payment methods, modern AP software centralises invoice capture, automates approval workflows, and provides real-time visibility into your payables. With Budgetly's Accounts Payable Software, businesses can capture invoices digitally, route them for approval automatically, track payment status in real time, and integrate seamlessly with your broader spend management ecosystem including expense management software and corporate cards.

Why should I use accounts payable software instead of manual invoice processing?

Manual invoice processing often involves lost invoices, delayed approvals, duplicate payments, unclear payment status, and hours of administrative work reconciling spreadsheets. Accounts Payable Software automates invoice capture (via email, scan, or upload), routes invoices through customisable approval workflows, flags duplicates, enforces payment terms, and provides real-time visibility into outstanding payables. By using Budgetly's AP Software together with the expense tracking app and automated workflows, you eliminate paper-based chaos, reduce processing time by up to 80%, strengthen vendor relationships with on-time payments, and gain complete financial control.

What is the best accounts payable software for Australian businesses and how does Budgetly's compare?

For Australian businesses, an ideal AP solution should support AUD transactions, integrate seamlessly with local accounting systems (like Xero and MYOB), comply with Australian tax requirements including GST, provide real-time spend visibility, and automate approval workflows. Budgetly's Accounts Payable Software is built specifically for the Australian market: it integrates with your existing accounting platform, supports automated invoice processing with OCR technology, provides customisable approval workflows, and ties into Budgetly's broader platform (including spend management software and corporate cards). This gives it a strong position among AP solutions for Australian SMEs seeking efficiency and control.

How much does accounts payable software cost?

The cost of using Budgetly's Accounts Payable Software depends on your plan—factors include invoice volume, number of users, approval workflow complexity, and integration requirements. Budgetly offers AP Software as part of its broader financial management platform, which you can combine with services like expense management software and corporate cards for a complete spend management solution. For a precise pricing quote tailored to your business size and invoice volume, you'll want to schedule a demo.

Ready to improve your financial performance and reduce admin across your team?

Schedule a demo with us today, or watch a 10-minute recorded demo!