Pros and Cons of AvidXchange: Analysis of a Top Accounts Payable Software in 2024

In the era of digitization of business processes, paper-based payment processing remains widespread among businesses, especially small and growing companies. Despite the disadvantages that come with this practice, such as slow processing and high error risk, some businesses still choose to stick to manual processes over automated ones because of budget constraints, tradition, or simply because traditional payment processing still works for their business.

Automating finance processes, however, is not just about getting in with the times or jumping into the current trend. It is a necessary transition that comes with growing or scaling your business. In this article, we will look into the pros and cons of AvidXchange, to see how its implementation of accounts payable (AP) automation can impact your business as other accounts payable software solutions do.

AP automation is among the business processes with a slow adoption rate. According to a survey by PYMNTS.com, 80% of firms were still using paper checks in 2019. Moreover, another survey by IDC reveals that 64% of respondents from the AP market utilized spreadsheets when doing payment processing. One of the reasons for AP departments lagging behind when it comes to digitization is that they are undervalued by their companies. Based on PYMNTS.com’s poll, only 19% of organizations view AP departments as exceptionally valuable. Meanwhile, 21% believe that the contribution they offer is of little value.

Come 2020, the COVID-19 outbreak forced the majority of businesses to make drastic changes in their operations. At this time, AP automation was moved to the forefront of priorities as organizations realized the importance of digitizing this business process once they shifted to remote work. According to a recent report by the Institute of Finance and Management, more than 30% of AP professionals work longer hours as they struggle to handle the challenges associated with manual and semi-automated AP processes in remote work environments. Among these challenges are the sudden increase in invoices and payments status inquiries, making sure that suppliers are paid on time, and alleviating fraud risks.

The unfortunate circumstances triggered by the pandemic have forced businesses to invest in AP automation, which has increased by 73% in 2020, according to IOFM’s benchmark report for the same year. If you are one of the AP professionals or business owners who are considering one of the top AP software solutions—AvidXchange, this article is for you. In this post, we will walk you through AvidXchange’s pros and cons, so you can make an informed decision on whether this is the right AP software for you.

What is AvidXchange?

AvidXchange is a cloud-based software solution equipped with cutting-edge technology to automate your invoice processing and payment management process. This platform is designed with four main modules dedicated to invoice processing, bills payment, purchase order, and utility bill management. Each module is equipped with tools and functionalities to automate each process, which results in higher productivity, lower error risk, and lower processing cost as there is less manpower involved.

Aside from simplifying invoicing and payment management, AvidXchange also gives you a holistic view of your business’ overall accounts payable process. Just by logging into your account, you can access the status of your invoices, utility, and other bills to pay, as well as process the payments right there and then. And because AvidXchange is a web-based platform, you can access your account from multiple devices that support web browsing, such as desktop and laptop computers, tablets, and mobile phones.

Furthermore, AvidXchange also integrates with more than 180 third-party software, such as ERP systems, accounting software solutions, and payment gateway platforms.

Pros and Cons of AvidXchange

1. Highly Configurable Solution for Various Industries

Different industries have different AP process requirements. And while there are AP software solutions dedicated to specific industries, AvidXchange ensures that the AP automation offered can address the needs of businesses in the banking, construction, real estate, hospitality, and technology industries, among others.

2. Paperless Invoice Processing and Approval

AvidInvoice, AvidXchange’s invoice processing solution, is equipped with an OCR technology that automatically codes paper invoices, thus reducing manual entry and the errors associated with it. Once coded, the invoices received are also automatically matched and assigned to specific workflows you have set up in the system. When it comes to approvals, you can create an automated routing workflow to make sure that the right invoices will be submitted to appropriate the teams or departments.

AvidXchange’s paperless invoicing solution shows you the status of your invoices in a single dashboard.

3. Trusted Payment Automation System

B2B payments can be done 100% online % through AvidXchange’s AvidPay. This built-in payment automation solution offers flexibility, speed, and security when making payments to your vendors and suppliers. It eliminates all the extra costs and labor that comes with check-based payments, such as check printing, mailing, and following up on suppliers to make sure that the checks have been cashed by the payee. To make sure that this system matches the way your business processes payments, you can set up custom workflows that also give you complete visibility over the status of every bill payment made. In this way, you can monitor which payment has been completed and those that are still pending approval, so you can make the necessary follow-ups to speed up the process.

AvidXchange allows you to send payments to your suppliers in the latter’s preferred form (i.e., card, bank, check, etc.).

4. Utility Bill Management

This web-based solution offers comprehensive management of energy consumption, utility bill payment, as well as energy procurement. Through AvidUtility, you can automate the end-to-end process of your business’ bills payments—from receiving invoices, capturing vital information, and making payments electronically. To ensure billing accuracy, every invoice automatically undergoes 30 separate validations that cover checking each invoice’s start and end date continuity, detecting bills that are out of cycle, verifying meter reading, and detecting duplicate charges. Furthermore, AvidUtility’s automated validation alerts you to discrepancies in utility rates and other issues detected during the validation process.

5. Cutting-edge Fraud Detection Technology

AvidXchange recognizes the threats when it comes to processing payments, especially in a digital platform. Along with the adoption of e-payment options, It also incorporates the latest security features to minimize the risks of fraudulent transactions, including unauthorized payment requests.

6. Procure-to-pay Automation

Purchase order management with AvidXchange is not just all about convenience but also cost control. AvidXchange’s procurement software, AvidBuy, helps automate your business’ purchase order process as well as put restrictions in place to prevent excessive and unnecessary purchases. AvidBuy also determines the most efficient purchase patterns, which aids in eliminating redundant purchases. Furthermore, you can create requisitions for the purchases you make on a regular basis, so you do not have to create one every time a purchase order is needed. Once integrated with AvidInvoice, AvidBuy can automatically match the invoice from suppliers with your purchase orders.

AvidXchange automatically matches your purchase orders to your invoices and alerts you to any discrepancies.

7. Extensive Integrations

As part of the overall accounting process, it is important for your accounts payable automation solution to integrate with your current accounting system. AvidXchange has more than 180 integrations with third-party software, such as Sage Intacct, Vista, AccountMate, Acumatica, AppFolio, FinancialForce, and others.

8. No Dedicated Mobile App

Despite its advanced functionalities, AvidXchange also has its downsides. One of the major disadvantages this AP solution has is it currently does not have a dedicated application for mobile devices. While its cloud-based platform is completely accessible from any device that supports web browsing, the availability of a mobile application can further enhance the convenience it offers to its users, not only for those who are working remotely but especially for users who are frequently on the move.

What kind of customer support does AvidXchange offer?

AvidXchange offers a range of customer support options designed to help users resolve issues and maximize their platform use. Here’s a breakdown of the support services available:

• Phone Support: AvidXchange provides phone support for customers needing immediate assistance. The platform’s dedicated support team is available during business hours to help with any technical or billing issues. This ensures that businesses can quickly resolve problems and keep operations running smoothly.
• Email Support: For non-urgent inquiries, customers can contact AvidXchange through email. This support channel is ideal for setup, general troubleshooting, or account management questions. The response time can vary based on the issue’s complexity, but AvidXchange aims to provide clear and timely solutions.
• Live Chat: AvidXchange also offers live chat support, providing real-time assistance directly from the platform. This feature allows users to ask questions or report issues without leaving the application, ensuring a seamless user experience.
• Dedicated Account Managers: AvidXchange provides dedicated account managers for larger organizations or those requiring more personalized assistance. These professionals work closely with businesses to understand their specific needs, offer guidance on best practices, and ensure that the platform is optimized for maximum efficiency.
• Online Knowledge Base and Resources: AvidXchange offers an extensive online knowledge base, including user guides, FAQs, and video tutorials. These resources are available 24/7 and can help users troubleshoot issues or learn how to use new features without contacting support directly.

Is AvidXchange the right accounts payable solution for your business?

Based on the pros of AvidXchange discussed above, one can see why it has become the most trusted accounts payable platforms in 2021. According to Crunchbase, the majority of B2B companies have chosen to invest in AvidXchange to help in their accounts payable and receivable processes.

Not only does it offer powerful AP automation functionalities it is also known for ease of use, security, and flexibility. But AvidXchange can also significantly change the way you handle AP and make a positive impact on your overall business operations. While improvements are still needed in some areas, specifically the availability of a mobile application for convenience, AvidXchange remains an ideal option for businesses, especially those that are making the transition from manual to automated operations.

If you would like to explore other options in the invoicing software category, you may want to check our list of 10 best invoicing software solutions.

Key Insights

• Manual vs. Automated Payment Processing: Many businesses still rely on paper-based payment processing despite its drawbacks, such as slow processing and high error risk. Automating finance processes is essential for scaling businesses.
• AvidXchange Overview: AvidXchange is a cloud-based accounts payable software designed to automate invoice processing and payment management, providing higher productivity, lower error risk, and reduced processing costs.
• Increase in AP Automation: The COVID-19 pandemic has accelerated the adoption of AP automation, with a 73% increase in 2020 as businesses shifted to remote work and faced challenges with manual AP processes.
• Comprehensive Features: AvidXchange offers features such as paperless invoice processing, trusted payment automation, utility bill management, fraud detection, and procure-to-pay automation.
• Industry-Specific Configurability: AvidXchange is highly configurable to meet the needs of various industries, including banking, construction, real estate, hospitality, and technology.
• Extensive Integrations: The platform integrates with over 180 third-party software solutions, including ERP systems, accounting software, and payment gateways, ensuring seamless integration with existing systems.
• Lack of Mobile App: A significant drawback of AvidXchange is the absence of a dedicated mobile app, which could enhance convenience for users working remotely or on the move.

FAQ

1. What is AvidXchange?

AvidXchange is a cloud-based accounts payable software designed to automate invoice processing and payment management, providing features such as paperless invoicing, payment automation, utility bill management, and fraud detection.

2. Why should businesses consider automating their accounts payable processes?

Automating accounts payable processes can increase productivity, reduce error risk, lower processing costs, and provide better visibility and control over financial operations. It is especially important for scaling businesses to ensure efficient and accurate financial management.

3. What industries can benefit from AvidXchange?

AvidXchange is highly configurable to meet the needs of various industries, including banking, construction, real estate, hospitality, and technology, among others.

4. How does AvidXchange handle invoice processing?

AvidXchange uses OCR technology to automatically code paper invoices, reducing manual entry errors. Invoices are matched and assigned to specific workflows, and automated routing ensures the right invoices are submitted to the appropriate teams or departments for approval.

5. What is AvidPay, and how does it benefit businesses?

AvidPay is AvidXchange’s payment automation solution that allows businesses to make B2B payments online. It offers flexibility, speed, and security, eliminating the extra costs and labor associated with check-based payments and providing visibility over payment statuses.

6. How does AvidXchange help with utility bill management?

AvidXchange’s AvidUtility automates the end-to-end process of utility bill payments, from receiving invoices to making electronic payments. It includes automated validation checks to ensure billing accuracy and alerts users to discrepancies.

7. What security features does AvidXchange offer?

AvidXchange incorporates the latest security features to minimize the risks of fraudulent transactions, including unauthorized payment requests, ensuring secure processing of payments on the digital platform.

8. What integrations does AvidXchange support?

AvidXchange integrates with over 180 third-party software solutions, including ERP systems, accounting software, and payment gateways, such as Sage Intacct, Vista, AccountMate, Acumatica, AppFolio, and FinancialForce.

9. Does AvidXchange have a mobile app?

Currently, AvidXchange does not have a dedicated mobile app. While its cloud-based platform is accessible from any device that supports web browsing, a mobile application could enhance convenience for users working remotely or on the move.

10. Is AvidXchange suitable for small businesses?

Yes, AvidXchange is suitable for small and growing businesses, particularly those looking to transition from manual to automated accounts payable processes. Its configurability, extensive features, and integrations make it a viable option for businesses of various sizes.

By Louie Andre

B2B & SaaS market analyst and senior writer for FinancesOnline. He is most interested in project management solutions, believing all businesses are a work in progress. From pitch deck to exit strategy, he is no stranger to project business hiccups and essentials. He has been involved in a few internet startups including a digital route planner for a triple A affiliate. His advice to vendors and users alike? "Think of benefits, not features."