Kloo vs. Payhawk: Procure-to-Pay Comparison

CFOs are often tasked with finding the right financial management solution to meet the needs of their businesses and finance teams. Software-as-a-Solution (SaaS) automation has been a key player for financial operation due to its feasibility and applicability for a variety of use cases, and its ability to automate manual process tasks. 

Accounts payable (AP) software, also known as AP automation software or AP management software, provides the ability to streamline and automate the accounts payable process within an organisation. This software is specifically tailored to manage and optimise the various tasks associated with managing and paying invoices and managing supplier relationships. Ultimately, this eliminates manual and time-consuming tasks, reduces errors, improves efficiency, and enhances visibility and control over financial operations. AP automation SaaS can simplify and accelerate the procure-to-pay process, leading to greater cost savings and increased productivity. 

Kloo and Payhawk both provide viable and innovative solutions for businesses looking to implement automation processes in their AP workflows. In this detailed comparison guide, we will examine the unique features of Kloo and Payhawk, focusing on their product offerings for procure-to-pay automation. But before we dive into the product comparison, let’s break down exactly how AP automation works in the scale of procure-to-pay systems. 

How Does AP Automation Work? 

AP automation uses software to systematically remove or reduce manual tasks across all phases of accounts payable, from the initial purchase requisition to the final execution of payments, employing either sophisticated AI-driven techniques or set rules-based approaches. This automation not only makes the procure-to-pay (P2P) process more efficient but also substantially reduces errors and the risk of fraud, significantly freeing up finance teams to pursue strategic objectives. 

Kloo Product Capabilities Overview 

Kloo utilises AI to power its AP automation platform, enhancing the procure-to-payment process. It excels in providing intelligent automation solutions for invoice processing and purchase order workflows, integrating AI throughout the platform to boost efficiency and accuracy. Key capabilities include: 

• Advanced Natural Language Processing (NLP): Kloo leverages AI to enable raising purchase orders through simple email communication, bypassing traditional login requirements and reducing unnecessary spend. This functionality also allows finance teams to extract actionable insights from AP data using natural language queries.

• Touchless Invoice Management: At the heart of Kloo's offering is its ability to manage invoices with minimal human intervention. OCR and AI technology automatically 'read' and understand invoices, ensuring they are matched accurately to the required POs. This sophisticated technology facilitates both two-way and three-way matching, streamlining the invoice management process.  
• Supplier Portal: Kloo offers a unified platform to manage suppliers, enabling automated invoice and PO matching, a visual breakdown of supplier spend, and the ability to add new payees directly from the platform. 
• Flexible Payments: Kloo provides a variety of payment options, including faster payments, SEPA Instant Payments, BPR and EUR Wallet, Payment Initiation Services, and a smart payment run creation and approvals engine. This functionality is complemented by support for foreign currency invoices and off-platform email approval capabilities. 
• Modern Procurement Cards: The platform supports globally accepted Visa virtual and physical cards, with features like new card and expense approval workflows, card controls, mobile app card management, receipt matching with OCR data extraction, and card spend analytics. 
• ERP Integrations: Kloo streamlines the integration with ERP systems, offering seamless data transfer, eliminating manual uploads, and reducing errors to speed up the closing process. 

What Does Payhawk Do? 

Like Kloo, Payhawk offer AP automation solutions through purchase orders, invoice processing, and spend management. 

Payhawk Product Capabilities Overview 

Payhawk presents a robust, albeit less AI-focused, solution for procure-to-pay needs: 

• Automated Purchasing Process: Payhawk simplifies the purchasing process, enabling users to submit and organize purchase requests in a centralized database. This feature enhances visibility on upcoming spend. 
• Automated Approval Workflows: The platform facilitates multi-step approval workflows, allowing timely request approvals and helping maintain control over business spend. 
• Intelligent Matching: Payhawk offers automatic 3-way matching to ensure purchase accuracy and identify discrepancies before issuing payments to suppliers. 
• Simple Global Payments: The system supports low-cost international bank transfers, allowing payments to suppliers in over 160 countries across 50+ currencies. 
• Purchasing Transparency: It provides comprehensive visibility into business purchases, aiding faster closure of accounts.

Feature Matrix of Kloo vs. Payhawk

Conclusion 

In financial management solutions, CFOs are continuously on the lookout for tools that not only streamline operations but also provide strategic value to their businesses. Both Kloo and Payhawk offer robust solutions for automating accounts payable workflows, contributing to significant improvements in efficiency and productivity for finance teams.

While Payhawk presents strong capabilities in automated purchasing and approval workflows, and offers visibility into procurement transactions, Kloo takes a more advanced approach. Kloo's use of AI extends beyond mere automation, pushing the boundaries to significantly enhance user interaction and experience. Features like AI-powered processing allow for raising purchase orders using natural language via email or chatbot, streamlining processes with predictive analytics and automated approvals that integrate seamlessly with the finance team's operations.