Pros & Cons of Plooto: Analysis of an Accounts Payable Software

Businesses can easily lose track of their cash flow with all the transactions they have to account for. This is a common problem for enterprises that deal with large volumes of buyers across multiple branches. Plooto is one such app that addresses this concern, as it facilitates digital payments while its integration with accounting software has the latter automatically record each transaction. The platform simplifies cash flow monitoring. The question is how reliable Plooto truly is.

This article delves into the pros and cons of Plooto, a well-known platform in the accounts payable space. It highlights the software’s strong points and shortcomings. Upon reading through the guide, you will know if Plooto is the ideal accounts payable application for your operation.

Cash flow is crucial to the sustainability of business organizations. Owners and managers monitor the flow of money to gauge business success and formulate strategies. According to a recent report, 82% of small businesses fail because of cash flow issues. One of those issues is poor cash flow management.

A lot of small businesses fail to properly document their spending. As a result, they end up paying more than they expected. This can negatively affect sales, cause issues with financial statements, and mess up company projections. Fortunately, software solutions have been developed to combat poor cash flow management and help keep small businesses afloat.

Accounts payable systems can help business owners and managers keep track of their spending. These platforms can document and process payments. Some integrate with accounting software, which enables transactional data to be automatically recorded into a business’s financial statements. Some applications also automate payment workflows and processes. According to a recent study, accounts payable automation can lower costs by up to 90% and reduce payment approval times by 89%.

Plooto has the aforementioned functionalities in its repertoire and offers a slew of useful extras. It supports international payments, online checks, and card payments. Additionally, the platform can process payments to parties who do not have a Plooto account, making it a flexible business solution.

What is Plooto?

Plooto is an online payment management platform that integrates with leading accounting software like QuickBooks, QuickBooks Online, and Xero to deliver complete automation for accounts payable and accounts receivable. Designed for accounting professionals, bookkeeping firms, and small to medium-sized businesses, Plooto is a straightforward, cost-effective solution for making AP and AR processes more efficient. Freelancers and independent professionals can also benefit from it, as it allows them to send invoices and receive payments faster, all secured with bank-grade encryption.

One major advantage of Plooto is its ability to process payments even if clients or vendors don’t have a Plooto account. With just an email address, funds are transferred directly to the recipient’s bank account, helping users avoid costly wire transfer fees. Additionally, Plooto automatically reconciles invoices and payments, marking them as paid in your accounting software for a faster, more seamless transaction process.

Plooto eliminates manual data entry, as its robust automation features allow you to connect your bank account, set up recurring payments, and enable pre-authorized debit options. You can customize approval workflows, coupled with functionalities that make it easy to monitor transactions like real-time notifications and audit trails. By digitizing payments, Plooto also removes the need for checks and unnecessary trips to the bank.

With Plooto, you can send payments throughout the US, Canada, and over 30 other countries at competitive exchange rates. Supported currencies include the US dollar, Canadian dollar, Euro, British pound, Chinese yuan, and more, making international transactions easier and more affordable.

Pros and Cons of Plooto

1. Automated Payables and Receivables

Plooto enables users to customize approval workflows and tracks pending payments.

Plooto’s automation features cover the entire payment cycle, including accounts payable and accounts receivable processes, significantly reducing manual effort and improving efficiency. For payables, users can automate bill uploads, set up recurring payments, and customize approval workflows to ensure proper authorization before funds are released. With receivables, Plooto automates invoice creation, sending, and tracking, along with automated reminders for overdue payments, which helps improve cash flow. Plooto also syncs transactions with its accounting software integrations, automatically reconciling payments to keep financial records accurate and up-to-date.

2. Efficient Approval Workflows

Plooto streamlines approval workflows by implementing customizable approval tiers. Businesses can set up specific rules for different payment amounts or types, determining the number of approvals required and who should approve them. This ensures that payments are authorized by the appropriate individuals, reducing the risk of unauthorized spending.

Approvers can review the payment information, add comments if necessary, and approve or reject the payment directly within the notification email or through the Plooto platform. This efficient approval process eliminates the need for manual paperwork and speeds up the payment cycle.

3. Payments Without Recipient Accounts

Unlike many payment gateways, Plooto simplifies payments to individuals or businesses that don’t have a Plooto account. You can send payments directly to their email address, and they’ll receive an email notification with a secure link to accept the payment. No account creation is required on their end. Once the recipient clicks the link, they’ll be prompted to enter their bank account information. After verification, the funds are securely transferred to their designated bank account.

This streamlined process eliminates the need for a Plooto account, manual checks, or complex wire transfers, saving time and reducing costs for both the sender and the recipient.

4. Comprehensive Payment Options

Plooto monitors receivables, accounting for the payment status and requested debut date for each.

Plooto supports various types of payments, which include credit cards, paper checks, domestic payments, cross-border payments, preauthorized debits, and CRA payments. The wide range of payment options enables businesses to painlessly settle their dues on local and international shores. Moreover, the platform accounts for one-time payments and recurring payments and offers corresponding solutions to foster convenience.

5. Smooth Integration with Accounting Software

Plooto’s integrations work by seamlessly connecting with popular accounting software such as QuickBooks, Xero, and Oracle NetSuite, facilitating a streamlined payment process for businesses. These integrations enable a two-way sync that automatically imports invoices, bills, and payment data between Plooto and the accounting software. As a result, users can manage their accounts payable and receivable more efficiently and have their transactions automatically recorded in accounting, reducing manual data entry errors and ensuring that financial records are always up-to-date.

For instance, when users upload invoices to Plooto, the platform automatically reconciles these transactions in the connected accounting software, simplifying the bookkeeping process and providing a clear audit trail.

While the integration with the accounting platforms is smooth, Plooto could use more key integrations. After all, business users leverage a host of other widely used accounting systems and other tools like business intelligence software and project management applications.

6. Enhanced Invoice Management

Plooto enhances invoice management by automating various processes and providing valuable features. It allows you to easily import invoices from different sources, including email, PDF, or paper documents. Notably, the system leverages Optical Character Recognition technology to extract information from invoices and use it as actionable data.

Once invoices are imported, Plooto automatically assigns them to appropriate workflows for approval and payment. The platform also provides tools for tracking invoice status, setting reminders, and generating detailed reports.

7. Streamlined Cash Flow Management

Plooto captures invoices, extracts useful information, and processes them into actionable data.

Plooto streamlines cash flow management by providing real-time visibility into payment statuses and balances. Businesses can track incoming and outgoing payments, identify potential cash flow bottlenecks, and make informed decisions about their financial operations. In addition, you can make quick adjustments to financial data in case last-minute changes occur.

By automating payment processes and reducing manual effort, Plooto helps businesses improve cash flow forecasting and optimize their working capital. You can also monitor the progress of your payables and receivables and perform necessary adjustments as needed. In a nutshell, leveraging Plooto is an effective cash flow management strategy for small businesses.

8. Reliable Audits and Security

Plooto uses bank-grade encryption and two-factor authentication to protect sensitive data and prevent unauthorized access. Meanwhile, the audit trail records every action taken on a transaction, from payment creation and approval to completion, capturing the details of who accessed, modified, or approved each step.

Having these two features gives you greater peace of mind, enabling secure, compliant financial operations with a clear record of all actions taken on their accounts. However, it would be ideal if Plooto offered the single-sign-on functionality to packages lower than its highest plan, the Pro plan.

9. Supports International Payments

Plooto simplifies international payments for businesses by automating accounts payable functions on a centralized dashboard, automatically converting payments to the local currencies of recipients. The system provides seamless global money transfers, supporting businesses with competitive exchange rates and reduced payment complexities.

Plooto does not charge exchange transfer fees, unlike banks, making it a cost-effective option for payables. However, the platform only supports USD and the Canadian Dollar for payers and 21 international currencies for recipients. Supporting more currencies will make international payments more convenient.

10. Instant Notifications

Plooto seamlessly integrates with accounting platforms like QuickBooks, Xero, and NetSuite.

Plooto’s instant notification feature keeps you informed about the status of your payments and invoices. You’ll receive real-time alerts via email or mobile notifications for various events, such as new invoices received, payment approvals, payment confirmations, and payment failures. These timely notifications help you stay on top of your financial activities, take immediate action when necessary, and maintain control over your cash flow.

Reliable Payment Management Solution

Plooto brings a lot of advantages to the table for small businesses, accounting firms, and finance companies. It automates the entire payment and billing cycle, including the process surrounding accounts payable and accounts receivable transactions. While it has a few areas for improvement, its current array of features streamlines cash flow management and makes payments easy, even if recipients do not have Plooto accounts. The balance of flexibility and overall functionality it delivers can help companies boost their savings and ultimately their profits. If you want to test how the software works, you can sign up for the Plooto free trial here.

For those who want a dedicated solution for collecting payments, check out some of the best billing software systems on the market.

By Jenny Chang

Jenny Chang is a senior writer specializing in SaaS and B2B software solutions. Her decision to focus on these two industries was spurred by their explosive growth in the last decade, much of it she attributes to the emergence of disruptive technologies and the quick adoption by businesses that were quick to recognize their values to their organizations. She has covered all the major developments in SaaS and B2B software solutions, from the introduction of massive ERPs to small business platforms to help startups on their way to success.