AvidXchange is software designed to automate your accounts payable processes — that is, processes related to the money a business owes vendors and suppliers for the purchases of goods and services made on credit. It can expedite different facets of the procure-to-pay cycle, including purchase orders, invoice management and billing management. These features can help you better manage accounts payable, which is important for maintaining strong relationships with vendors and having an accurate depiction of your business’s cash flow.
If you find yourself overwhelmed with complex accounts payable work, AvidXchange is certainly a strong solution. Those with more simple accounts payable work may look elsewhere for a solution.
AvidXchange is a software that integrates with your business’s accounting or enterprise resource planning (ERP) system to automate tasks related to accounts payable and payments. The software can be installed on the cloud or directly onto your business’s server. AvidXchange says its solution can work for every business type from real estate to finance and that it integrates with hundreds of different types of software.
AvidXchange describes its service as automating the procure-to-pay cycle, in which businesses inquire, request, receive and then pay for raw goods and services. Its value proposition is that AvidXchange’s automation will save time and money while increasing productivity and scalability.
When you sign up for AvidXchange, you will be able to choose between four different software products that aim to optimize the procure-to-pay cycle.
AvidXchange sells applications for purchase orders, invoicing and payments.
Purchase order software
AvidXchange’s purchase order software is a web-based solution that allows users to create official orders for goods or services to speed up the buying process. AvidXchange will automatically send the purchase order to the vendor and the invoice to your email inbox. If you combine the purchase order software with AvidXchange’s invoice solution, you’ll be able to automatically match the purchase order with the invoice to create a seamless process when data is exported to your accounting system.
For goods or services that your business routinely places purchase orders for, you can create requisitions and have them automatically placed at a regular cadence, eliminating the need for you to place the order yourself. AvidXchange will also notify you for approval before any purchase order is processed, eliminating the chance of an unwanted purchase.
Finally, AvidXchange tracks your purchase order history to try and identify inefficient spending and unneeded purchase orders — giving you more insight into your business’s spending.
Invoice management software
When you send a purchase order through AvidXchange, your vendors will have the option to send an invoice in a format that is most convenient to them. They can either email invoices directly to AvidXchange with an inbox created specifically for your company or send a paper invoice to an AvidXchange P.O box. If your vendor would rather send the invoice directly to your business, you must then submit a PDF copy of it to AvidXchange.
Regardless of how AvidXchange receives the invoice, it will be automatically coded, assigned to the appropriate workflow and routed electronically for approval. Once invoices get your stamp of approval, they flow directly into your accounting system for payment processing. Users also have the option to add rules and alerts for invoices to make sure AvidXchange handles them in a way that makes sense for your business.
The invoice software comes with an internal chat feature that allows colleagues to discuss invoices and address any concerns. AvidXchange also provides analytics on your invoicing history.
Bill payment software
When it comes time to settle up on those invoices, AvidXchange offers two different methods of payment. The first method is to select the invoices you wish to pay in your invoice management software and route them through AvidXchange’s e-payment application. The payment will be debited from your linked business bank account to an AvidXchange trust account via ACH transfer. From there, funds are distributed to vendors.
The payment is then automatically recorded in your business’s accounting software, and AvidXchange will send you a file with the payment information your company needs for reconciliation of payments.
The other option is to use AvidXchange’s digital check creator to settle up payment. To do so, create a payment file in your accounting system and send it to AvidXchange’s integrated Create-A-Check software. AvidXchange generates a secure, MICR (magnetic ink character recognition) check with automated, encrypted signatures on your behalf. After payment is approved, the check is routed to your vendor’s verified bank account. Checks are submitted via ACH, EFT or wire transfer. For those that still prefer to submit paper checks, AvidXchange comes with a check printing feature.
AvidXchange’s bill pay and digital check software also comes with reporting tools and an approval workflow. For security purposes, AvidXchange has a dedicated supplier team that works directly with your suppliers to maintain their payment data and verify their accepted payment types.
Utility bill management software
Outside of traditional bill payment software, AvidXchange also sells software specifically for the management and payment of your business’s utility bills. AvidXchange’s Utility Bill & Analytics (UBAR) system integrates digitally with your utilities providers in order to provide greater control of utility costs and invoice management. The UBAR system aims to eliminate the burden of receiving, capturing and paying utility invoices.
Here is everything the software can do:
Validate accuracy of start and end date continuity.
Detect missing and out-of-cycle bills.
Check meter reading continuity for billing accuracy.
Monitor consumption variances and issue alerts for irregularities.
Monitor rate variances and issue alerts for irregularities.
Detect duplicate utility bills and charges.
In addition to the UBAR software, AvidXchange’s Energy Procurement team negotiates third-party electric and natural gas supply arrangements on behalf of clients with business sites in states with deregulated electricity markets. AvidXchange will analyze each supplier’s bid and recommend the most qualified energy supplier with the product that fits your energy requirements.
UBAR also comes with a Rate & Tariff analysis tool that provides a 12-month historical utility cost analysis of billings across all accounts. The tool is designed to identify errors and cost-saving opportunities.
Given that AvidXchange has such complex software, it’s good news that it offers 24/7 support via phone. On its website, there is a Resources page with articles, guides and video tutorials on how to use AvidXchange with your business’s software. There is also a blog with information on how to get the most out of your accounts payable system. Note that when you sign up for AvidXchange, it can take up to 60 days for the software to integrate with your business systems.
The price of AvidXchange is entirely quote-based and depends on the services you need, the size of your business and the nature of your business. AvidXchange works to create a tailored accounts payable solution for every business based on its specific needs. On the software review website G2 Crowd, customers rank AvidXchange’s price in the 70th percentile in terms of cost, making it one of the more expensive options relative to similar products.
The best reason to use software like AvidXchange is to cut down on the time you spend performing back-office tasks like accounts payable. To that extent, AvidXchange delivers on its promise by using automation to cut out processes that eat up a business owner’s time. AvidXchange turns your accounts payable process into something that can be done with a few clicks of a computer mouse, giving you more time to focus on tasks that will positively impact your business.
Ease of use
Integrating software like AvidXchange requires expert assistance, but once you have it up and running, numerous customers have said they find the system intuitive and easy to use. It’s a credit to AvidXchange that it designed a complex product and made it user-friendly. If you’re the type of business owner who is overwhelmed by complicated bookkeeping and accounting procedures, know that AvidXchange has designed its software with you in mind.
AvidXchange is a very good service, but here are some not-so -great things to be aware of:
AvidXchange doesn’t provide any specific pricing information on its website, but users report paying a hefty fee to integrate AvidXchange into its system. One user said the invoice management software cost them $5,000. However, while there are complaints about price, it’s also worth mentioning that many customers seem to be happy with what they get for their money.
Depending on the size and nature of your business, software like this may not even be necessary. It all depends on how complex and time-consuming your accounts payable system is. If you work with lots of different vendors, AvidXchange may make sense for your business. But if you are only placing a handful of purchase orders each month, you might find it makes more sense to handle accounts payable manually.
Here is how customers rank AvidXchange across major review platforms:
G2 Crowd: 4.4 stars out of 5.
TrustRadius: 9.4 stars out of 10.
Capterra: 4.5 stars out of 5.
Better Business Bureau: A+.
The reviews of AvidXchange are resoundingly positive. Users tout the system’s ease of use, variety of features and accuracy in tracking purchase orders and invoices. Most users report that AvidXchange has allowed them to significantly cut down on the time they spend working on accounts payable tasks. The software is particularly a hit with those in the property management industry, as it allows them to track all their records in one place.
In terms of negative reviews, the only recurring critique of AvidXchange is that it is difficult to integrate into existing business systems. Users report running into unique issues and technical glitches depending on the type of software they are integrating with and the type of operating system their computers use.
AvidXchange isn’t the only product on the market that offers accounts payable automation. Let’s take a look at some other services:
Mineral Tree is fairly similar to AvidXchange. It allows you to manage your accounts payable cycle from invoice approval to final payment in one simple interface, while maintaining clear segregation of duties with email alerts and approvals to prevent internal fraud. Mineral Tree integrates with most major accounting software and offers quote-based pricing.
For smaller businesses that don’t deal with as many vendors, there is QuickBooks Online. This software is considered the gold standard of accounting software by most professional small-business accountants. It comes with all the bells and whistles you need for managing your accounts payable, receivable and more. Note that it’s a total accounting system, not solely an accounts payable tool. But if you’re a small business, QuickBooks Online will likely suit the majority of your accounts payable and other accounting needs.
A version of this article was first published on Fundera, a subsidiary of NerdWallet.
Business News Governmental News Finance News