In this review, we’re covering the Tipalti billing and invoicing solution. Solid financial management is one of the toughest aspects of running a small or medium sized business, yet it’s essential. Knowing how is not the only challenge.
The sheer amount of work to be done and the time it requires is another point of concern. This need opened the opportunity for financial management software. Tipalti is one of the best around.
The platform recognizes the challenge associated with running an efficient payment system devoid of late payments, administrative overloads, and other human errors and it solves this challenge.
The platform has turned the otherwise complex and tedious process of global payments and meeting tax requirements into a simple automated process.
What is Tipalti?
Tipalti is a payment and automated financial management software. It provides accounts payable and remittance services to businesses who need to pay vendors, customers, partners, and other business associates.
The platform is cloud-based and automates the payment process from onboarding to tax compliance.
With Tipalti, you can manage payments to your partners in 190 countries without worrying about tax and regulatory requirements.
Oren Zeev, a venture capitalist, and Chen Amit in 2010. With $3 million secured from private investors, they launched their product in 2012. By 2014, Tipalti was processing payments of about $1 billion and $1.5 billion annually to approximately 300,000 payees.
In 2018, the platform raised $30 million and announced that it was now servicing 1,800,000 payees and $4 billion annually.
The world of business and technology has recognized this fast growth. Tipalti got named as one of Inc.’s fastest growing companies.
In 2017, PayStream Advisors named this platform the “Innovative Payments Technology of the Year.”
As stated on their website, Tipalti is a Hebrew word which means “you can relax, I took care of it.” And this informs the way the platform runs their business.
“The more manual effort we can relieve for our customers; the greater their opportunities to pursue success.” This statement is Tipalti’s approach.
According to the platform’s website, this approach has yielded a lot of benefits as they have many huge companies as clients.
Uber, Amazon, Houzz, Roku, Twitter, Vungle, Twitch, GoDaddy, Vimeo, Nikon, and Zumba are some of their well-known clients.
Who Can Use Tipalti?
Any company that wants to remove cumbersome payables difficulties can use Tipalti. The platform targets innovative businesses that want to scale their payables while improving tax and regulatory compliance. These businesses can be freelancers, suppliers, publishers, creators, or gig workers.
If you are looking for a way to streamline invoice and payment processing, payment method choice, automatic currency conversion, and smooth and early payment, then you can work with Tipalti.
How Does Tipalti Work?
Tipalti has a method with which businesses can implement its solution.
Before you get started, Tipalti lays a very well structured foundation that makes the rest of the process easy. You get a setup call where a member of the platform’s team reviews your end to end workflow. The technical configuration requirement gets reviewed and validated.
You are also guided through the due diligence approval cycle. The Tipalti team will train you on the end user experience, and the Account Payable (AP) Hub. You also get a technical overview of the integration so you can work with ease once you get started.
After you and the Tipalti team agree on the requirements, they assist you with the integration of the iFrame into your website. They set up the Tipalti hosted portal, configure essential banking, email and PayPal integrations.
If you require it, the team will integrate the software into your front and back-end ERP systems using pre-built integrations and comprehensive API. Tipalti will conduct weekly (or more frequently if required) status calls to make sure the project goes as planned.
Before you begin to onboard your vendors and other payees, Tipalti does in-depth training for your team. You learn how the AP Hub works. The training prepares you to manage your operation over the long term.
After you receive training, it is time to launch. Once you onboard your payees, you can fund your account. After this, you prepare your payment files and make the first payment run. You then learn how to troubleshoot exceptions.
This platform provides adoption and change management support throughout the launch process.
After you make your first payment, Tipalti remains with you all the way, making sure you get the most out of its service.
Tipalti’s team of Customer Success Managers (CSM) work with you to understand and reach your long-term goals. The CSMs will recommend processes, solutions, services and best practices that will help you make the best of Tipalti.
Features of Tipalti
Supplier Management System
Tipalti’s self-service portal is designed to guide suppliers through submitting contact information, tax forms, and banking details. The smooth and best-in-class payments experience will improve your relationship with your suppliers.
Tipalti makes your brand prominent with its white iFrame embedded in your website. You can also customize the portal to match your brand look and feel.
With Tipalti, you don’t have to scour emails looking for banking details, manually updating supplier information and requesting for tax forms. The suppliers carry out these responsibilities. Supplier self-service means quicker onboarding and faster payment. Vendors are assigned IDs, preventing duplicate registrations, thus easing the management of your vendor master file.
Global payees get the chance to choose how they want to be paid and in what currency. The vendors pick their payment option, and Tipalti informs you about any transaction fees while making sure you don’t break any tax or regulatory rules. Tipalti supports eleven international languages and emails are multi-lingual.
Tipalti’s proprietary rules engine can identify problems before they happen because 26,000 global rules drive it. These rules reduce errors by about 66%. You don’t have to bother with manual, time-consuming screening because Tipalti’s built-in worldwide intelligence and fraud prevention takes care of this.
Suppliers have 24/7 access to the supplier portal, meaning they can change payment information, upload invoices, and view payment history whenever they want. There is no need to contact AP; suppliers have the autonomy to focus on what matters to them.
Before users make any payments, Tipalti collects tax information through digital capture during the onboarding process. The tax information is validated before you make any payment.
Tipalti’s tax solution is KPMG certified, and your AP operation is always up-to-date with the latest US tax laws. You will not need to scramble to get W-9 and W-8 BEN IRS forms from suppliers at the end of the year.
For payees not based in the US, there is VAT tax ID collection available in 49 countries. Tipalti securely collects tax ID and guided by over 3000+ rules, and the tax engine avoids errors and issues.
Suppliers can send their invoice through an email or upload it to their secure portal. Tipalti automatically scans the invoice into the system for processing. The AP Hub monitors the invoice’s complete cycle; from the payment execution to reconciliation.
Once a user uploads their invoice into the systems, the platform automatically extracts its details. This extraction is done utilizing Optical Character Recognition (OCR) technology. This process eliminates tedious invoice data entry. If you make any changes, Tipalti recognizes this, and it uses this logic to improve performance.
Tipalti gives you internal control and unlimited invoice approvers. Once an invoice is ready to be approved, Tipalti triggers automated emails to approvers for in-mail or online approval.
You don’t have to manually go after the invoice or wait around for them to get to you. Approvers can see invoices awaiting review, AP action or payment. They can also invite other suppliers to register on the portal from the approval email.
Tipalti allows you to approve multiple invoices in a single workflow or a batch.
Suppliers receive constant information during the payment process. From receiving an invoice to invoice approval and payment, suppliers always know what is going on.
AP Hub does not have to spend time dealing with inquiries. Suppliers receive status notifications via email and have access to payment history online.
Global Supplier Payments
The Tipalti platform can make several hundreds and thousands of payment at once. This platform’s design allows for massive payments to different parts of the world with minimal effort and no hassle. Over 26,000 ranking rules also provide preemptive protection against payment errors.
With Tipalti, you can do the following.
- Pay to 190 countries in 120 different currencies.
- Access built-in OFAC and other sanction screening.
- Schedule thousands of payment.
- Enterprise-grade financial controls.
- You can use multiple payment methods.
Tipalti has early payments built into the payment system. Suppliers can elect to receive payments early for a small discount. This can turn AP from a center that only spends money to a unit that saves the business some money.
You can specify payees eligible for early payment. You decide which suppliers you want to extend early payment to, and what percentage of the payment is eligible. Early payment help you do the following;
- Your business generates extra revenue.
- Completely automated negotiation and offer.
- No payer interaction required.
- Enterprise-Grade financial control.
- You still pay on standard terms.
Payment Reconciliation and AP Reporting
Tipalti takes payments made by different methods, from different geographical locations, and rolls them into one ledger report. You no longer to stitch together spreadsheets from different banks statements and invoices.
Tipalti reconciles payments made in different currencies, subsidiaries, and regions into one file. This increases your cash flow visibility and managing your working capital and reduces the number of fraudulent payments.
Pros of Tipalti
1. Payment Automation
One of Tipalti’s most significant advantages is the number of processes it automates. About 80% of the manual and the global process executes automatically. Tipalti automates payment across 190 countries and 120 currencies that is a lot of work it saves you.
The vetting and validation process guided by about 26,000 rules reduces error rates by about 66%. You can handle payments across different regions, methods, and currencies in minutes.
2. Minimal AP Resources Required for Global Scaling
Tipalti provides the processes and infrastructure you need to scale your businesses globally without having to generate another AP system. With Tipalti your business is ready for future expansions. Tipalti can deal with supplier based increment, global development, adding new subsidiaries, increased payments, and going public.
You don’t have to worry about tax rules and other regulations in other countries or currency conversions, Tipalti handles all of these.
3. Eliminate Financial and Compliance Risk
The Tipalti system maintains internal controls that ensure you never have to worry about financial regulations around the world.
This platform detects fraudsters listed on the international blacklists by OFAC and other sanction screenings. That way you can spot these bad eggs during your onboarding process and before payments.
Your chances of incurring tax penalties drop significantly. This platform uses the KPMG-certified tax form collection and validation with TIN matching to help with your tax filings.
4. Advanced Reporting
Tipalti has a fantastic payment reporting system. The platform generates accurate and detailed payment reconciliation reports. The AP team do not have to worry about taxation rules, different payment methods or regional considerations.
5. Great Customer Support
Poor customer support has ruined otherwise great products. Tipalti isn’t one of them. Users have often found their customer support team to be very responsive and helpful.
Cons of Tipalti
1. Not So Easy to Use
Some users have found the interface a bit difficult to use. Not every page carries a very detailed instruction on use.
Tipalti’s website does not show its pricing. You cannot find out how much you will be spending per time until you contact the company’s team.
3. Registration is not straightforward
Most websites have portals where you can register and start to use their software, Tipalti doesn’t. If you’d want to use this platform, first, you’d book an inquire about the product, and then an employee gets back to you.
It may not be a tedious process, but sometimes you want to click and register for something immediately.
Pricing and Price Models
There are no pricing models on Tipalti’s website. To know how much it will cost your business to use the platform, you have to reach out to the team and request a “quote.”
Once again, customer support is one of Tipalti’s most significant assets. They respond to emails and in good time. Or you can fill a form on their “contact us” page.
To Wrap Up
Tipalti is a beneficial software that provides a relevant service. Automating payment across 190 countries saves you a lot of money and time. When you run a business in several countries, one of the biggest challenges is tax compliance. You don’t have to worry about this when you use this platform; the system takes care of it.
No software automates accounts payable 100%, but Tipalti comes close.