Cloud-based accounts payable: What it is and how it works

Cloud-based accounts payable (AP) software is a digital solution that helps businesses automate the process of managing invoices, approvals, and vendor payments, all from an online platform. These tools are essential for modern businesses looking to streamline financial operations, improve accuracy, and reduce costs.

Let’s break down the key features of cloud-based AP systems, compare them to traditional software, and discuss their benefits.

What is cloud-based accounts payable?

Unlike traditional AP systems that rely on paper-based workflows or locally installed software, cloud-based platforms provide a faster, more secure, and scalable approach to managing payments. These systems are accessible from any device with internet access—making them ideal for distributed teams, remote workforces, and organizations with growing operational needs.

Key features of cloud-based AP systems

Cloud-based AP solutions streamline and centralize accounts payable by offering functionality that improves speed, accuracy, and oversight across every step of the AP lifecycle. Common features include:

• Automated invoice processing: Digitizes incoming invoices and automatically routes them to the right approvers based on predefined rules
• Real-time visibility: Provides live dashboards to monitor payment status, cash flow, and outstanding liabilities
• ERP and accounting integrations: Seamlessly connects with tools like QuickBooks, NetSuite, SAP, and others
• Built-in audit trails: Automatically logs every edit, approval, and transaction to support compliance and transparency
• Role-based access controls: Lets teams customize permissions so users only see what’s relevant to their role

How cloud-based accounts payable compares to traditional AP systems

Traditional AP processes are often manual and inefficient—requiring employees to scan invoices, manage email threads, and track approvals by hand. These time-consuming workflows increase the risk of delayed payments, duplicated effort, and limited financial visibility.

By contrast, cloud-based AP automates these tasks and offers a more agile, transparent approach. Below is a side-by-side comparison:

Benefits of cloud-based accounts payable solutions

Switching to a cloud-based AP system strengthens your finance function by increasing speed, visibility, and accuracy—while significantly cutting operational costs. Here are the most impactful benefits for finance and operations teams:

1. Boost efficiency and productivity

Cloud-based accounts payable solutions reduce time spent on manual tasks, allowing finance teams to shift focus toward strategic planning and analysis. Key efficiency gains include:

• Automated invoice capture using optical character recognition (OCR) to extract invoice data
• Auto-coded entries matched to vendors and general ledger accounts
• Rule-based routing that sends invoices to the right approvers automatically
• Smart scheduling for payments, tracking, and notifications
• Centralized management of invoices, vendors, and approvals in one platform

2. Cut costs across the board

Cloud-based accounts payable systems help businesses save money when compared to traditional on-premise solutions. Where you’ll save:

• No server or IT maintenance costs—cloud providers handle updates and hosting
• Fewer hours spent on approvals and manual processing
• Reduced headcount needs as automation scales with your company

For example, a mid-sized company using manual workflows might spend thousands per year on server upkeep and physical storage. Switching to a cloud-based AP platform replaces those expenses with a predictable monthly fee and allows for growth without increasing overhead.

3. Improve accuracy and minimize errors

Manual AP processes are prone to mistakes like typos, late approvals, or duplicate payments. Cloud-based systems introduce automated checks that catch and prevent common issues.

Errors reduced by cloud-based AP:

• Duplicate invoices or payments
• Mismatched purchase orders and invoices
• Manual data entry mistakes
• Missed payment deadlines due to delayed handoffs

With fewer errors, your team can close the books faster and with more confidence.

4. Seamless Integration with ERP systems

Cloud-based AP tools don’t operate in isolation—they’re built to integrate with major ERP systems and accounting platforms like NetSuite, SAP, and QuickBooks. Benefits of this integration include:

• Real-time updates of invoice and payment data
• More accurate cash flow and liability reporting
• Stronger payment controls and audit trails
• Smoother procurement to payment processes

Whether you use NetSuite, SAP, QuickBooks, or another ERP system, cloud-based AP platforms are built to plug in with minimal IT effort.

How to choose the right cloud-based AP solution

Choosing the best cloud-based accounts payable solution can transform your finance operations—but only if you weigh the right factors. The ideal platform should fit your workflows and drive real improvements in both efficiency and accuracy.

Start with integration capabilities

Your AP solution needs to connect seamlessly with your ERP, banking software, and any other financial tools you rely on. Prioritize platforms that offer pre-built integrations for popular accounting systems, and check for open APIs that support custom connections. This ensures your tech stack works together without manual intervention.

Don’t stop at the sticker price

A thorough cost analysis should include implementation fees, user training, ongoing support, and any customization you might need. Add up these expenses for a true total cost of ownership. Then, compare those costs with the savings you’ll gain from reduced processing times, less paper, and fewer payment errors to get a clear view of your ROI.

Vendor reputation

Investigate customer reviews, browse case studies, and look up industry ratings. Vendors with a proven track record—especially in your industry—are more likely to provide reliable solutions and responsive support.

Request detailed product demonstrations

See how each solution manages your specific AP workflows. Pay close attention to the user interface, mobile features, and how the system handles exceptions or approval routing. Even the most advanced features won’t help if your team finds the system too complex to use.

Conduct a thorough needs assessment

Document any current AP pain points, typical processing volumes, approval hierarchies, and compliance requirements. Distinguish between must-have features and those that are simply nice to have. Bring in key stakeholders from finance, IT, and operations to help define your selection criteria, ensuring buy-in across the board.

Checklist for choosing your software

Examples of cloud-based accounts payable automation software

There’s no shortage of AP automation solutions on the market. But not all offer the same features or integrations. The best accounts payable automation software depends on your business structure and team needs.

Here’s a snapshot of the leading cloud-based accounts payable solutions and what sets them apart.

1. Ramp

Ramp is an all-in-one finance platform built to help businesses move faster and smarter. Ramp automates every step of the accounts payable workflow, from invoice processing to approvals and payments, while giving finance leaders real-time visibility into where every dollar goes.

Key features include:

• AP automation that streamlines invoice intake, coding, and approval
• Smart routing rules to reduce bottlenecks in the approval process
• Integrated corporate cards with spend controls and policy enforcement
• Centralized vendor management and payment scheduling
• Real-time reporting and dashboards that connect spend to outcomes
• Offers a free entry-level tier and cost-effective upgrades—perfect for growing businesses

Ramp stands out by combining invoice automation, corporate card management, and expense tracking in one platform. It integrates directly with your accounting systems, syncs financial data in real time, and eliminates manual work that slows down your AP department. Ramp gives your finance team time to focus on strategic decisions.

2. Tipalti

Tipalti is designed to support complex, international accounts payable needs. Tipalti’s automation reduces manual workload for high-volume AP teams and supports finance compliance in multiple regions.

Key features include:

• Multi-currency and cross-border payment automation
• Tax form collection and compliance
• Supplier self-service onboarding portals

3. Airbase

Airbase offers a spend management platform that combines accounts payable automation, corporate cards, and employee reimbursements. Airbase centralizes spending for companies that want to streamline financial operations across departments.

Key features include:

• AP automation with custom approval workflows
• Physical and virtual corporate cards with built-in controls
• Real-time budget tracking and spend reporting

4. BILL.com

BILL streamlines basic accounts payable tasks, offering features like invoice capture, approval routing, and digital payments. It integrates with tools like QuickBooks and Xero while also providing small businesses with improved payment speed.

Key features include:

• Automated invoice capture and digitization
• Approval workflows with email and mobile support
• Sync with major accounting platforms

Choose Ramp Bill Pay as your top-rated cloud-based AP software

The right accounts payable automation software should adapt to your unique processes, scale with your business, and integrate seamlessly with your existing tools. The best platforms make AP workflows efficient, transparent, and error-free, allowing you to focus on growth instead of busywork.

Ramp stands out as the top-rated AP automation platform because we do more than streamline processes—we empower businesses with real-time insights, customizable workflows, and an intuitive user experience.

Some of the features you get by automating accounts payable with Ramp include:

• Automated invoice processing: Whether you scan or upload invoices, our AI automates the data entry process and takes care of invoice matching and reconciliation
• Real-time reporting: Access up-to-date insights into your finances, including payment status, expenses, where you are with budgeting, and potential cost-saving opportunities
• Customizable approval workflows: Build smart approval workflows that keep things moving and receive error or overbilling alerts for better cash flow control

Start using Ramp Bill Pay today or try our interactive demo to see exactly how Ramp works.