Cloud-based accounts payable: What it is and how it works

Cloud-based accounts payable (AP) software is a digital solution that helps businesses automate the process of managing invoices, approvals, and vendor payments, all from an online platform. These tools are essential for modern businesses looking to streamline financial operations, improve accuracy, and reduce costs.

Let’s break down the key features of cloud-based AP systems, compare them to traditional software, and discuss their benefits.

What is cloud-based accounts payable?

Unlike traditional AP systems that rely on paper-based workflows or locally installed software, cloud-based platforms provide a faster, more secure, and scalable approach to managing payments. These systems are accessible from any device with internet access—making them ideal for distributed teams, remote workforces, and organizations with growing operational needs.

Key features of cloud-based AP systems

Cloud-based AP solutions streamline and centralize accounts payable by offering functionality that improves speed, accuracy, and oversight across every step of the AP lifecycle. Common features include:

• Automated invoice processing: Digitizes incoming invoices and automatically routes them to the right approvers based on predefined rules
• Real-time visibility: Provides live dashboards to monitor payment status, cash flow, and outstanding liabilities
• ERP and accounting integrations: Seamlessly connects with tools like QuickBooks, NetSuite, SAP, and others
• Built-in audit trails: Automatically logs every edit, approval, and transaction to support compliance and transparency
• Role-based access controls: Lets teams customize permissions so users only see what’s relevant to their role

How cloud-based accounts payable compares to traditional AP systems

Traditional AP processes are often manual and inefficient—requiring employees to scan invoices, manage email threads, and track approvals by hand. These time-consuming workflows increase the risk of delayed payments, duplicated effort, and limited financial visibility.

By contrast, cloud-based AP automates these tasks and offers a more agile, transparent approach. Below is a side-by-side comparison:

Benefits of cloud-based accounts payable solutions

Switching to a cloud-based AP system strengthens your finance function by increasing speed, visibility, and accuracy—while significantly cutting operational costs. Here are the most impactful benefits for finance and operations teams:

1. Boost efficiency and productivity

Cloud-based accounts payable solutions reduce time spent on manual tasks, allowing finance teams to shift focus toward strategic planning and analysis. Key efficiency gains include:

• Automated invoice capture using OCR to extract invoice data
• Auto-coded entries matched to vendors and general ledger accounts
• Rule-based routing that sends invoices to the right approvers automatically
• Smart scheduling for payments, tracking, and notifications
• Centralized management of invoices, vendors, and approvals in one platform

2. Cut costs across the board

Cloud-based accounts payable systems help businesses save money when compared to traditional on-premise solutions. Where you’ll save:

• No server or IT maintenance costs—cloud providers handle updates and hosting
• Fewer hours spent on approvals and manual processing
• Reduced headcount needs as automation scales with your company

For example, a mid-sized company using manual workflows might spend thousands per year on server upkeep and physical storage. Switching to a cloud-based AP platform replaces those expenses with a predictable monthly fee and allows for growth without increasing overhead.

3. Improve accuracy and minimize errors

Manual AP processes are prone to mistakes like typos, late approvals, or duplicate payments. Cloud-based systems introduce automated checks that catch and prevent common issues.

Errors reduced by cloud-based AP:

• Duplicate invoices or payments
• Mismatched purchase orders and invoices
• Manual data entry mistakes
• Missed payment deadlines due to delayed handoffs

With fewer errors, your team can close the books faster and with more confidence.

4. Seamless Integration with ERP systems

Cloud-based AP tools don’t operate in isolation—they’re built to integrate with major ERP systems and accounting platforms like NetSuite, SAP, and QuickBooks. Benefits of this integration include:

• Real-time updates of invoice and payment data
• More accurate cash flow and liability reporting
• Stronger payment controls and audit trails
• Smoother procurement to payment processes

Whether you use NetSuite, SAP, QuickBooks, or another ERP system, cloud-based AP platforms are built to plug in with minimal IT effort.

How to choose the right cloud-based AP solution

Choosing the best cloud-based accounts payable solution can transform your finance operations—but only if you weigh the right factors. The ideal platform should fit your workflows and drive real improvements in both efficiency and accuracy.

Start with integration capabilities

Your AP solution needs to connect seamlessly with your ERP, banking software, and any other financial tools you rely on. Prioritize platforms that offer pre-built integrations for popular accounting systems, and check for open APIs that support custom connections. This ensures your tech stack works together without manual intervention.

Don’t stop at the sticker price

A thorough cost analysis should include implementation fees, user training, ongoing support, and any customization you might need. Add up these expenses for a true total cost of ownership. Then, compare those costs with the savings you’ll gain from reduced processing times, less paper, and fewer payment errors to get a clear view of your ROI for automating accounts payable.

Vendor reputation

Investigate customer reviews, browse case studies, and look up industry ratings. Vendors with a proven track record—especially in your industry—are more likely to provide reliable solutions and responsive support.

Request detailed product demonstrations

See how each solution manages your specific AP workflows. Pay close attention to the user interface, mobile features, and how the system handles exceptions or approval routing. Even the most advanced features won’t help if your team finds the system too complex to use.

Conduct a thorough needs assessment

Document any current AP pain points, typical processing volumes, approval hierarchies, and compliance requirements. Distinguish between must-have features and those that are simply nice to have. Bring in key stakeholders from finance, IT, and operations to help define your selection criteria, ensuring buy-in across the board.

Checklist for choosing your software

Cloud-based accounts payable automation software

There are plenty of accounts payable automation solutions out there, but not all of them offer the same level of visibility, control, or ease of use. The best solution for your team depends on how your AP process works, what systems you need to integrate with, and how much manual work you’re looking to reduce.

If you're looking for a cloud-based AP automation solution that’s easy to adopt and built to scale, Ramp stands out.

Ramp—Cloud-based AP with flexibility

Ramp Bill Pay handles your accounts payable end-to-end with zero manual work. Four AI agents manage invoice coding, spot fraudulent transactions, generate approval summaries, and process vendor payments. Its OCR achieves 99% accuracy on line-item details and moves invoices 2.4x faster than older AP platforms for a touchless experience¹.

Ramp is cloud-based and accessible via a web interface and mobile app, offering a versatile and convenient way to manage your company's finances.

Run Ramp Bill Pay as a standalone system, or connect it with Ramp’s corporate cards, expense management, and procurement tools for unified spend control. Even up to 95% of companies report better payables visibility after switching to Ramp².

Top AP features

• Intelligent invoice capture: Digitizes invoice data across all line items with 99% accuracy
• Automated PO matching: Compares incoming bills to purchase orders using two-way and three-way reconciliation, flagging discrepancies before authorization
• Four AI agents: Learn from historical spending patterns to categorize invoices, scan incoming invoices for fraudulent activity, compile approval documentation, and initiate card-based payments
• Custom approval workflows: Configure multi-tier authorization paths that route invoices according to department, amount thresholds, or vendor type
• Roles and permissions: Implement access controls that maintain appropriate segregation of financial responsibilities
• Payment methods: Disburse funds through ACH transfers, corporate cards, checks, or wire payments
• International payments: Pay vendors across 185+ countries global spend management support
• Batch payments: Execute multiple vendor disbursements simultaneously rather than individually
• Real-time ERP sync: Maintain bidirectional synchronization of vendor information with leading accounting platforms including NetSuite, QuickBooks, Xero, Sage Intacct, and others—ensuring your books stay audit-ready
• Reconciliation: Complete your monthly close in less time through automatic transaction matching
• Bulk W-9 collection: Request all W-9s and e-consent at once instead of chasing vendors with one-off emails
• AI-powered 1099 prep: Ramp automatically maps bill pay spend to 1099-NEC and 1099-MISC boxes with calculations done for you
• One-click IRS filing: File directly with the IRS and eligible states in minutes—no extra portals or logins
• Vendor onboarding: Request and store W-9 forms, validate taxpayer identification numbers, and organize 1099 documentation in one system
• Vendor Portal: Offer suppliers a self-service hub where they can update banking details, monitor payment timing, and reach your AP staff directly
• Corporate cards: Provision physical and virtual payment cards with built-in spending guardrails
• Expense management: Scan receipts, reimburse employees, and enforce spending policies without juggling multiple tools
• Procurement: Review and authorize purchase requests before your team commits to spending

Why choose Ramp Bill Pay?

Ramp Bill Pay functions as a full AP system on its own. Or if you're looking to handle bill payments, card transactions, employee expenses, and procurement all in one place, Ramp can also unify these together.

No matter your setup, Ramp Bill Pay processes AP with accuracy and speed that traditional platforms can't keep up with. Over 2,100 verified G2 reviews give Ramp a 4.8-star rating, and users consistently rank it as one of the easiest AP platforms to use. Finance teams rely on Ramp to cut out busywork, prevent costly mistakes, and finish month-end close faster.

Ramp offers a free plan with essential AP features, and for $15 per user per month, Ramp Plus adds on more advanced capabilities.

Get touchless AP with Ramp Bill Pay.

1. Based on Ramp’s customer survey collected in May’25

2. Based on Ramp's customer survey collected in May’25