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. 

AP Automation: How It Works

AP automation is pivotal in removing the need for manual handling of various accounts payable activities, from initiating purchase requests to executing payments, via AI or rule-based automation technologies. This automation not only speeds up the P2P process but also reduces the likelihood of human error, enabling the finance department to devote time to strategic tasks.

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. 

Kloo’s Contribution to AP Automation

Kloo offers an AI-enhanced AP automation platform that optimises the entire procure-to-payment process. By incorporating AI, Kloo ensures efficient automation of key tasks such as invoice processing and purchase order workflows, thus enhancing overall P2P operations.

Kloo Product Capabilities Overview 

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

  • Automated Touchless Invoice Processing: Central to Kloo’s capabilities is its automated invoice management, which relies on OCR technology to interpret invoice data and employs AI for accurate 2- or 3-way matching, including fuzzy matches.

  • Comprehensive Supplier Portal: The platform provides a cohesive supplier management interface that facilitates automated matching of invoices and purchase orders, offers detailed visual reports on supplier spending, and simplifies the addition of new payees.

  • Flexible Payment Solutions: Kloo supports various payment methods such as SEPA Instant Payments and BPR, along with a sophisticated engine for managing payment runs. It also offers features for handling foreign currency transactions and approvals via off-platform emails.

  • Modern Procurement Card Options: Kloo supports Visa virtual and physical cards, integrated with extensive management features through a mobile app, including new card issuance, spending controls, and expense approvals, complemented by OCR for receipt data extraction and spend analysis.

  • ERP System Integration: The platform enhances ERP system integrations, facilitating robust two-way data exchange and maintaining the ERP system as the central repository of financial data.

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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