How to Choose the Best Automated Accounts Payable Solution

TL;DR

• What this guide covers: A step-by-step framework for MSPs, VoIP resellers, and IT service providers to choose an AP automation tool that reduces manual work, improves billing accuracy, and scales with growth.
• Why it matters: Manual AP increases risk and cost. Choosing the wrong tool can do the same.
• What you’ll identify: Key capabilities to look for and red flags to avoid.
• What’s included: 6-point evaluation framework, comparison checklist, and Rev.io recommendation.
• Who it’s for: Finance and operations leaders at TSPs (MSPs, VoIP resellers, IT firms) evaluating automation platforms.

As a technology service provider (TSP), you’re likely juggling dozens, if not hundreds, of vendor invoices each month. Manually entering, matching, and approving those invoices is a recipe for late payments, billing errors, and shrinking margins. Luckily, automated accounts payable solutions are designed to fix that. 

By automating invoice ingestion, streamlining approvals, and centralizing payment execution, the right platform saves you time and puts you in control with real-time visibility into vendor spend, tighter margins, and fewer surprises at the end of the month. 

But here’s the problem… Most AP tools weren’t built for service providers. Most platforms fragment financial operations, requiring separate tools for quoting, invoicing, vendor payments, and billing. This disconnect makes it harder to manage margins effectively.

This guide will help you choose an automated accounts payable solution that actually fits how you operate, scales with your growth, and protects every dollar you earn.

What is AP Automation?

AP automation refers to software that digitizes and streamlines the accounts payable process, reducing manual tasks and increasing visibility. For MSPs, VoIP resellers, and IT service providers juggling multiple vendors and recurring charges, automation is the key to staying efficient and error-free.

Instead of relying on spreadsheets or manual approval chains, AP automation tools centralize everything into a digital workflow. These tools typically:

• Capture invoices automatically from email, portals, or scanned uploads
• Match invoices to POs or contracts to minimize discrepancies
• Route approvals through role-based workflows
• Execute payments electronically via ACH or cards
• Track every step of the process for full visibility and control

It creates faster approvals, fewer errors, and more time to focus on your clients, rather than chasing down invoices or resolving vendor disputes.

Why AP automation matters for service-based businesses

Manual AP processes often lead to:

• Duplicate or missed payments
• Late fees and strained vendor relationships
• Lost passthrough charges that shrink your margins
• Gaps in audit readiness and compliance exposure

And for service providers with vendor pass-through for usage-based billing services, these risks compound quickly. That’s why scalable AP automation is a strategic advantage.

What to look for in a smart AP automation platform

Once you understand the risks of manual AP, the next step is knowing what to prioritize in an AP automation platform. For MSPs and service-based businesses, here’s what modern AP automation should deliver:

• Automated invoice ingestion from email, portals, or APIs helps eliminate manual entry and reduce errors, making it one of the top AP challenges for businesses today.
• Line-item matching between vendor charges and client billing, ensuring passthrough accuracy for usage-based services, is a core feature of Rev.io’s PSA and billing engine.
• Multi-level approval workflows with role-based permissions, escalation rules, and audit logs, built to prevent the bottlenecks and compliance risks that manual processes create.
• Built-in payment execution for ACH and cards, so your team can complete the full AP cycle from one place. Rev.io’s integrated payments enable faster funding and simplified reconciliation.
• Compliance and security controls are baked in, with access restrictions, encryption, and detailed activity logs to meet regulatory demands and reduce risk exposure.
• End-to-end visibility into vendor spend, giving finance teams the insights they need to catch overpayments, control costs, and stay audit-ready, something manual AP often obscures until it’s too late.

Done right, AP automation gives MSPs and service providers a smarter, scalable way to manage payments; one that improves accuracy, protects margins, and frees up your team to focus on client success.

6 Key Factors to Evaluate in an Accounts Payable Automation Platform

Every TSP operates with tight margins and high operational complexity. An automated accounts payable solution should support that reality by aligning with your PSA, reconciling vendor charges to client billing, and helping your team move faster with fewer errors.

The most effective platforms are built around the real demands of service providers: accurate passthrough cost, recurring service alignment, and approval workflows that scale with the business.

Automated AP solution must-haves

The table below defines the baseline capabilities required for effective AP automation. These features ensure your platform can support real-time reconciliation, secure payments, and growth across your vendor ecosystem.

The following breakdown shows how each capability plays out in real-world AP workflows, with specific traits to look for and gaps to avoid.

1. Integration: Connect AP directly to your PSA and billing

Treating AP as a standalone process leads to billing mismatches and hidden margin loss. When vendor charges can’t be tied to client billing before approval, accuracy suffers.

What to look for:

• Native integration with your PSA or billing platform like QuickBooks, Sage, Xero, etc.
• Real-time reconciliation before payments are pushed
• Support for usage-based billing and passthrough logic

Red flag: AP tools that don’t connect to your invoicing workflows or require separate reconciliation steps.

2. Invoice management: Capture invoices accurately and match them to client billing

Uploading invoices isn’t enough. Your platform should be able to read, categorize, and verify vendor data with precision and accuracy. Accurate data matching helps prevent passthrough errors and flags inconsistencies before they reach finance or clients.

Look for:

• Auto-ingestion from email, platform sync, or API
• Intelligent matching to client billing
• Detection of mismatched or usage-based line items

This keeps your team focused on exceptions, not manual entry.

3. Approvals: Route with control and audit visibility

AP approval shouldn’t create delays or audit risk. Structured workflows help keep payments moving and records clean. Configurable approval paths ensure that high-risk or high-value invoices get the right visibility, without slowing down the entire process.

Look for:

• Role-based approval paths
• Notifications, time tracking, and escalation workflows
• Complete audit history for compliance

Strong approval logic sets the foundation for reliable payment execution.

4. Payments: Push transactions directly and manage vendor preferences

Once invoices are approved, payments should happen inside the same system. Switching tools adds unnecessary risk and complexity. A centralized payment process reduces friction, enforces approval logic, and gives your team a complete audit trail from invoice to payment.

Look for:

• ACH and credit card support
• Vendor-specific terms and payment preferences
• Multi-currency functionality

Efficient payments build vendor trust, reduce late fees, and speed up reconciliation.

5. Security and compliance: Enforce controls and streamline oversight

AP automation should protect your business. Built-in controls are critical for financial and regulatory oversight. A strong AP platform applies compliance rules by default, ensuring approvals, access, and audit logs are always in place.

Look for:

• SOC 2, PCI-DSS, and HIPAA-readiness
• Two-factor authentication and access controls
• Activity logs and fraud detection tools

6. Scalability: Support growth across your vendor ecosystem

TSPs working with dozens or hundreds of vendors need platforms built for growth. AP tools should keep up without adding complexity. Scalable systems reduce the need for manual workarounds as your vendor network expands, keeping operations clean and predictable.

Look for:

• Dedicated onboarding and ongoing support
• Regular product enhancements
• Capacity to support a growing vendor network

Red flag: Platforms that require custom development just to support basic scale.

Wrapping Up: Find an AP Automation Tool Built for TSPs

Manual AP introduces real financial risk. It slows down approvals, makes vendor costs harder to track, and creates blind spots that eat into your margins. Many platforms claim to automate the process, but they often fall short when it comes to reconciling costs, supporting usage-based billing, or integrating cleanly with your PSA.

Rev.io takes a different approach. Our AP automation is built directly into the PSA platform and designed specifically for service providers. It automates invoice intake, reconciliation, approvals, payments, and audit tracking all in one place. Every vendor charge is matched to client billing before it’s approved, giving your team the visibility and control needed to protect revenue and improve accuracy across the board.

Book a demo to see how Rev.io’s integrated AP automation streamlines finance operations and protects your profit margins.