Best Invoice Matching Software (2-way and 3-way match)
TL;DR
- Invoice matching is an essential aspect of the accounts payable cycle, but is riddled with problems like errors, slow processing and lack of visibility when handled manually.
- The introduction of invoice matching software has brought speed and accuracy in this process by automating invoice capture and performing 2-way or 3-way matching.
- This article dives into a detailed explanation of invoice matching and explores different software, such as Osfin, Yooz, FloQast, etc., that are automating invoice matching
What is Invoice Matching?
Invoice matching is a process in the accounts payable cycle in which supplier invoices are matched to purchase order details before payment. It includes matching information like supplier name, purchase amount, quantity, vendor code, etc. It involves 2-way and 3-way matching. Due to its time-consuming and error-prone nature, AP teams across industries are investing in invoice automation software that reconciles multiple lines of data within minutes.
What is 2-way and 3-way Matching?
2-way matching is the most basic invoice-matching process in accounts payable, in which supplier invoice details are validated with the original purchase order. It is performed for low-risk, recurring purchases that do not require verifying the delivery of goods or services.
In 3-way matching, apart from matching vendor invoices with the purchase order details, they are also verified with the goods delivery receipt. This adds a layer of protection to prevent overpayments, duplicate and fraudulent payments. This is common in industries which require validating full delivery of goods or services.
How do we Evaluate Invoice Matching Software?
Invoice matching is a crucial step in your accounts payable process. Its speed and accuracy determine the hold you have over your cash flow and your relationship with your supplier. This underscores the need to carefully evaluate all available automated invoice-matching software before deciding on the one best suited to your business. In our evaluation, we considered the following things:
- Can it support and capture multiple formats of invoices?
- Does it bring speed to invoice matching?
- How does it handle discrepancies in data?
10+ Best Invoice Matching Software
To make things easy for you, we have created a list of applications that automate invoice matching.
1.Coupa
Coupa is AI-native spend management platform. It offers solutions for procure-to-pay, accounts payable, treasury & cash management etc. Coupa scales you accounts payable with multi-level automated invoice validation, dynamic approval workflows and full mobile access.
Key Features
- Automatically matches invoices to approve POs with configurable tolerances
- More than 25 alerts across 6 categories of spend activity serve as safeguards against fraud and error.
- Seamlessly integrates with major ERPs and accounting platforms.
Pricing: $2500/month
2.Concur Invoice
Concur Invoice is an accounts payable solution within the SAP Concur Spend Management Suite. It automates the invoice management process from capture to pay. Concur has a dynamic approval workflow that simplifies payment approvals by routing invoices to the right approver.
Key Features
- Captures invoices using OCR technology and ML
- Seamless integration with ERPs
- Enables invoice review and approval using a mobile app
Pricing: Custom pricing
3.FloQast
FloQast is a cloud-based technology that automates account operations. It used a no-code AI agent to streamline close management, invoice matching and compliance activities. FloQast offers customizable workflows and real-time collaboration tools that speed up the reviews and ensure accuracy during the high-pressure close process.
Key Features
- Matches high-volume transactions with AI
- Seamlessly integrates with major ERPs
- Maintains a history of activity logs to give you audit-ready workflows
Pricing: Custom pricing
4.Tipalti
Tipalti is a finance automation tool that simplifies global accounts payable, treasury, procurement and mass payments. It provides an end-to-end solution that eliminates manual work, errors and time-consuming reconciliation.
Key Features
- Uses AI to capture accurate invoice details
- Supports matching multiple POs against one invoice and vice versa
- Allows creating threshold tolerances that reduce manual invoice reviewing
Pricing: 99 Euros/month, 219 Euros/month and custom pricing
5.HighRadius
HighRadius is a cloud-based financial close management platform. It uses Agentic AI to eliminate repetitive tasks, auto-resolve exceptions and fast-track invoice processing. HighRadius enables cross-team accountability and handoff by allowing collaboration between AP, procurement, finance and business units.
Key Features
- Extracts invoice items with AI and puts them in structured fields with confidence scores
- Matches PO invoices with purchase order and GDR at the line level
- Speeds approvals by routing invoices based on roles, thresholds and contextual rules
Pricing: Pay as you go pricing
6.Stampli
Stampli is an AI-driven procure-to-pay platform. It provides a centralized location for invoice communication, documentation, coding and approvals. Stampli adapts to your workflows and drives business growth by automating core finance tasks.
Key Features
- Accepts invoice via emails, drag and drop, vendor portals, or CSV uploads
- Automatic 2-way and 3-way invoice matching at line levels
- Uses your approval logic to route invoices to right approvers
Pricing: Not available
7.ReconArt
ReconArt is a web-based account reconciliation software that offers flexible and configurable workflows. It supports full automation of data import, transaction matching, and approval workflows. ReconArt adapts to diverse business environments and gives enhanced visibility, control and accuracy in financial reporting.
Key Features
- Seamlessly integrates with ERPs and internal systems
- Reduces manual intervention by automatically matching vendor statements and internal payables
- Identifies discrepancies with automatic issue detection and resolution workflows
Pricing: Custom pricing
8.BILL AP/AR
BILL is cloud-based software that simplifies and automates finance processes for small and mid-sized businesses. It optimizes AP processes by automatically capturing invoices, reconciling transactions and scheduling payments.
Key Features
- Reduces errors and manual work with 2-way and 3-way matching
- Tailors approval workflows to your business rules
- Connects with your systems using deep sync or custom file integration
Pricing: $49/per month, $65/per month, $89/per month or custom pricing
9.Ramp
Ramp is an all-in-one solution for automating finance operations. It speeds up month-end closing and streamlines the accounting process using AI. Ramp automates the entire procure-to-pay process, eliminates approval bottlenecks and helps you prevent out-of-policy spend.
Key Features
- OCR captures each detail and line item from invoices
- Applies 2-way and 3-way matching for line items and detects discrepancies
- Real-time sync with ERPs helps keep data clean and consistent
Pricing: Free, $15/per month and custom pricing
10. Yooz
Yooz is an AI-powered accounts payable and procure-to-pay automation platform. It can integrate with multiple ERPs and accounting systems across mid-market and enterprise environments. Yooz helps organizations achieve greater efficiency and accuracy by providing a centralized platform to capture, process, manage and pay invoices.
Key Features
- Automatically extracts relevant data from invoices such as vendor information, invoice number, amount, etc
- Spots and stops instances of fraud in real-time
- Uses advanced and configurable workflows for routing invoices
Pricing: Custom pricing
11.Basware
Basware is a cloud-based platform that supports end-to-end processing of invoices. It speeds up the AP process using AI and ML functionality across the whole cycle. Basware provides actionable insights into your process while utilizing a touchless technology that reduces errors and manual process in AP cycle.
Key Features
- Captures invoice using SmartPDF technology
- Provides spend visibility by pulling data into a centralized dashboard
- Automates coding for non-PO invoices using historical coding and invoice header data
Pricing: Custom Pricing
Limitations of Traditional Invoice Matching Methods
The need to adopt invoice validation software in business arises from the limitations present in traditional methods of invoice matching. These are:
1.Slow processing
Traditional methods included entering invoice data from multiple sources and manually matching it to POs and GDRs. These invoices moved across multiple departments for approvals, either via email or physical documents. This resulted in slow invoice processing.
2.Human errors and frauds
Typos, incorrect amounts and duplicate invoices are common when data is entered manually. This also left space for fake invoices and unauthorized transactions to go unnoticed, resulting in financial losses.
3.Lack of visibility
Accounts payable are meant to provide businesses with visibility into their cash flow. But manual processes lack the ability to provide real-time insights into cash movement and payment status to vendors.
4.Supplier relationship strain
Approval delays are common in manual invoice processing, which means late payments to suppliers. Repeated cases of such delays strain the relationship with suppliers and may even result in losing business with them.
Where Osfin Fits: Beyond Invoice Matching
Invoice matching is one of the many accounting operations that need to be efficiently and accurately processed to give you control over your finances. While the above-mentioned software can streamline invoice matching, you still require tools for automating other financial operations. This is where Osfin comes into play.
Osfin is an intelligent automation platform that streamlines financial operations across banking, payments & cards, fintech, retail, etc. Not only does it speed up data ingestion and matching, but it also eliminates manual reconciliation, reduces revenue leakage and provides real-time cash flow visibility through intuitive dashboards. It streamlines your business process with:
1.File-format agnostic capability
Osfin uses 170+ connectors to integrate with your ERPs, bank and payment systems and captures data from multiple sources regardless of format. It applies custom deviation tolerances to detect duplicates and outliers at the point of ingestion.
2.Lightning-fast reconciliation
Osfin performs 30 million reconciliations in 15 minutes with 100% accuracy. It supports logic-based matching and handles one-to-many, many-to-one transactions, and multi-way reconciliation, such as 2-way. 3-way, 4-way and 5-way. It auto-reconciles payment gateway reports with commission, tax and fee breakdowns.
3.Exception handling engine
Osfin’s exception handling engine automatically flags anomalies and assigns them accurate reasons, while routing unmatched transactions to the appropriate team member.
4.Intelligent insights
It provides access to a comprehensive dashboard that delivers real-time insight into cash flows, exception tracking, payout validation and performance across systems and partners. To ease your compliance burden, it maintains complete transaction traceability and provides audit-ready workflows.
5.Data protection
Being a financial operation automation platform, Osfin understands the need for data protection. That is why it provides 256-bit encryption, maker-checker flows, role-based access and two-factor authentication. It solidifies security by staying compliant with SOC 2, PCI DSS, ISO 27001 and GDPR requirements.
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How to Choose the Right Invoice Matching Software
Managing invoices is an important part of the Accounts Payable process. The decision to automate it follows ongoing inefficiencies and delays. This makes it necessary that the invoice verification software you invest in can:
- Capture data from multiple file formats
- Easily integrates with your ERPs, bank and payment systems
- Flags anomalies in invoices and directs them to the appropriate authority
- Protect your data with encryption and role-based access
The Future of Invoice Matching
New changes keep happening in technology, and automated invoice matching software is not staying far behind. These newer trends we see in invoice matching software are:
1.AI takeover
Modern invoice matching tools are leveraging AI technology to capture data, reconciling it and detecting fraud. It has considerably reduced the manual workloads of AP teams.
2.Cloud-native platforms
Building automation platforms was once limited to big corporations due to the infrastructure cost. The emergence of cloud-native platforms has now made AP automation accessible to even small businesses and solopreneurs.
Finishing Off
Matching invoices has always been a complex and error-prone task. Its efficiency and accuracy are determinants in how smoothly your business will run. But implementing automation tools for invoice matching while still using redundant methods for your other finance operations hinders your business growth. This is why you should streamline your finance operations with Osfin.
Osfin gives you intelligent finance automation solutions that reduce manual data entry and reconcile a high volume of complex transactions within minutes. It efficiently resolves errors through its exception-handling engines, reduces revenue leakage and delivers real-time cash flow visibility.
Book a demo with Osfin now and see the results for yourself!
FAQs
1. What is invoice matching?
Invoice matching is a process in the accounts payable where supplier invoices are matched with purchase order details of the business.
2. What is difference between 2-way and 3-way invoice matching?
In 2-way matching, the supplier invoice is matched with the purchase order details. It is the most basic invoice matching and is performed for low-risk transactions. In 3-way matching, supplier invoices are matched with purchase order details and the goods delivery receipt. It adds a layer of protection by verifying the delivery of goods and prevents overpayment or fraud.
3.How do I choose the right invoice matching software?
To choose the right invoice-matching software, you must consider its capacity for data capture, ERP integration and fraud detection.
4.What are the top invoice matching software?
There are many invoice matching software out there but some of the best are Concur invoice, FloQast and Yooz.
