Kloo vs. Tipalti: AP Automation Comparison

December 6, 2023
Kloo vs. Tipalti Comparison
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Finding ways to more efficiently manage your business through different economic cycles and identify cost-saving opportunities is essential. Adding advanced technology automation to your Accounts Payable (AP) workflow saves significant time and money and improves your company’s cost structure. It lets your team focus on strategic business improvements and growth opportunities. When business transaction levels increase and new complexities are introduced, AP automation tools are built to support that business growth. 

Both Kloo and Tipalti offer a viable range of AP automation and purchase order management solutions for efficient financial management for businesses of all sizes. In this comprehensive guide, we will discuss each vendor’s unique product offerings and features to decide which solution fits your business needs. 

Firstly, let’s uncover how AP automation works and the importance of purchase order management in finance teams. 

How Does AP Automation Work? 

The process of AP automation begins with invoices being uploaded directly onto the platform, or captured directly from a separate email inbox. The software digitally reads and extracts purchase order, supplier, and invoice details, with features like optical character recognition (OCR) capturing and converting invoice data and sparing the team from data entry. The automated AP system then classifies, matches, validates data, and forwards it to the approval system. Once approved by the designated approver, invoices are given the final review before being synced with your ERP or accounting system. The invoice will then be routed for payment after review, using the supplier details captured in the extraction process. AP automation provides a set of viable benefits for financial processing and operations. 

These benefits include substantial cost savings, reduced risk of errors or fraud, and improved control over supplier payments. As a result, this streamlining enhances visibility into spend, aiding cash flow management and optimising vendor payments. Now we will dive into each of the product offerings to view each of their unique features for AP automation. 

Why is PO Management Important? 

Purchase orders (POs) are official documents from a buyer to a seller, detailing specific types, quantities, and agreed prices for products or services. They are a crucial asset for purchasing control and supplier relationship management.  They are vital for other key reasons: 

  • Budgetary Control: Ensuring purchases are pre-approved and within budget.  
  • Order Accuracy: Reducing the likelihood of incorrect orders.  
  • Financial Planning: Assisting in tracking expenses for better forecasting.  
  • Legal Protection: Serving as legally binding documents. 

Traditional methods, while foundational, are increasingly being augmented or replaced by automated solutions like Kloo or Tipalti. These advanced systems offer not just simplicity and accuracy but also a strategic advantage in managing business operations. The ability to automate and integrate procurement processes seamlessly into the broader business workflow is not just a convenience; it's a necessity for maintaining competitiveness and operational excellence. 

Now we will dive into each of the product offerings to view each of their unique features for AP automation and PO management. 

What Does Kloo Do? 

Kloo is an AI-powered AP automation platform that streamlines the procure-to-payment process. Whether you are working towards invoice processing or automated purchase order workflows, Kloo delivers smart automation across a range of functions by leveraging AI throughout the platform. 

Kloo Product Capabilities Overview 

Kloo distinguishes itself with its advanced AI-powered automation across the entire procure-to-pay spectrum. Key capabilities include: 

  • AI-Powered Processing: Kloo’s embedded AI allows users to raise purchase orders via natural language through email or chatbot. This innovative approach augments automated approval flows and predictive spend analytics, providing strong budgetary context for finance teams. 
  • 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 Tipalti Do? 

Tipalti is a cloud-based AP automation and purchase order (PO) management software. Tipalti software is mostly used by midmarket companies to improve efficiency, save costs, and strengthen financial controls and global compliance. The software scales with you as your company grows. 

Tipalti Product Capabilities Overview 

Tipalti’s AP automation, PO management, and global payments software provides: 

  • Touchless Invoice Management: Powered by machine learning and OCR for advanced two- and three-way PO matching with tolerance thresholds, smart approvals routing and more. 
  • Streamlined Supplier Management: Configure supplier data entry, reduce workload, and eliminate inaccuracies with a multi-language supplier portal with supplier self-service. 
  • Rule-based Approvals Routing: Customisable approval flows can be regulated by the user, ultimately reducing the need for manual work and eliminating bottlenecks during workflows. 
  • Automatic PO Creation: Tipalti’s PO Management system creates POs automatically once a purchase request is approved, eliminating the need for manual data entry. 
  • Advanced ERP Integrations: Tipalti offers a range of integrations across existing ERP and accounting systems for syncing invoices, suppliers, payments, and purchase orders.


Feature Matrix of Kloo vs. Tipalti




AI Capabilities 

Advanced AI-powered digital assistant (Purchasing Copilot) for predictive PO requests, invoice matching and coding 

Standard AI-powered digital assistant (Tipalti PI) for predictive PO requests 

Automation Capabilities 

Advanced AI-powered AP workflow automation 

Standard workflow AP features 

Invoice Management 

Touchless invoice processing, powered by OCR and advanced AI technology 

Touchless invoice processing, powered by standard AI technology 

Purchase Order Management 

Automated two- or three-way matching, free platform module offering  

Automated 3-way matching 

Approval Workflows 

On platform or via generative AI natural language email, customisable  


ERP Integrations 

Comprehensive integration options 

Comprehensive range of integration options 


Flexible, multi-currency options 

Simple global payments 

Corporate Cards 

Modern procurement cards, virtual/physical with single- and multi-use cards

Not specified 

Critical Comparison 

While Tipalti arises as the incumbent choice in this comparison, its standard AI capabilities are limited throughout most of the platform’s functionality. On the other hand, leverages AI more extensively in its core processes, such as no-touch invoice processing and natural language for purchase requests. AI is embedded throughout Kloo’s product offering, allowing for more streamlined financial operations and both effective and efficient usability from procurement to payment. 


Kloo emerges as a distinct innovator in the AP automation space, particularly with its AI-driven no-touch invoice processing and natural language capabilities for purchase requests. While Tipalti offers a comprehensive AP automation solution with its own unique strengths, Kloo's commitment to AI and technological innovation positions it as a forward-thinking choice for businesses seeking an advanced, automated solution for their Accounts Payable needs. 

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