In the first blog in this series, we discussed what accounts payable (AP) automation actually is, why it’s increasingly valuable to CFOs, when to invest in it, and how to track the ROI of such an important investment. In part two, we discuss the importance of weighing your approach: integrated automation tools, versus an embedded one.
The Two Paths of AP Automation: Integrated vs Embedded
API connections and integrations are a standard component of any organization’s tech stack. But with most lessons learned about accounts payable, the standard way of doing things often isn’t the most efficient.
What exactly is the difference between an integrated or embedded automation tool for NetSuite?
Most accounts payable automation platforms fall into one of two categories:
1. Integrated Platforms
Standalone tools (e.g., Bill.com, Tipalti) connect to NetSuite using APIs or connectors. This means your AP data lives in two systems, and the sync layer becomes a fragile middleman.
Challenges:
- Users need to learn and use multiple systems.
- Approvals and payments happen outside of NetSuite.
- Data must be synced—often hourly or daily.
- Updates to NetSuite can break the connection.
- Reports, audit trails, and error resolution are split across tools.
2. Embedded, Integrationless Platforms
This is a newer class of solution—one built to live inside NetSuite. There’s no connector. There’s no external interface. AP automation runs natively, because it was designed specifically for NetSuite.
Advantages:
- One interface; everything happens in NetSuite.
- No connectors or integrations required.
- Real-time data for reporting and single source of truth.
- Lower security risk and compliance friction.
- Seamless reporting, audit, and payment workflows.
Think of it like moving from a third-party browser plug-in to a built-in browser feature. It’s native, reliable, and doesn’t break.
For more information on the future of Integrationless automation, read our blog here.
Key Features to Expect in a Modern AP Automation Platform
Robust AP automation platforms share a few non-negotiable characteristics. These features aren’t just conveniences—they define the effectiveness, scalability, and security of your finance operations inside NetSuite.
Invoice Capture: Moving Beyond OCR
Traditional OCR is a legacy technology, often delivering average results and forcing manual corrections. Today, AP teams are embracing AI-powered invoice capture—like SquareWorks’ Invoice AI—which outperforms OCR by:
- Recognizing a wide range of vendor formats.
- Accurately extracting both header and line-item details.
- Pre-coding GL accounts, subsidiaries, and other key fields using contextual learning.
- Providing the ability to add AI directions to manage more complex use cases.
This approach minimizes human intervention and accelerates invoice readiness.
Further reading is available on our blog, on topics like OCR Accuracy and how AI is Revolutionizing Invoice Processing.
Approval Workflows: Native, Configurable, and Auditable
Approval delays are often the top bottleneck in AP. This may come in different flavors, such as delayed approvals, chasing down hundreds of emails flying around, and generally creating a lot of confusion for internal stakeholders.
A strong platform enables:
- Role-based and rules-based workflows that mirror your business hierarchy.
- In-NetSuite approvals, as well as email-based approvals.
- A full audit trail for every decision, making compliance easier during audits.
- Ability to delegate approvals when out of office.
When approvals happen outside NetSuite, audit integrity and visibility suffer. Native workflow tools solve that by keeping every action tied to the actual transaction.
Vendor Onboarding & Vendor Management
Managing vendor relationships begins with a secure and scalable onboarding process. Working with vendors should be easy and automated.
The top AP automation solutions improve vendor relations by:
- Automating W-9 collection, banking details, and compliance checks.
- Validating and flagging banking mismatches before payment.
- Embedding approval workflows into vendor creation.
- Enabling an easy way to request new information from existing vendors.
- Allowing an easy way to update existing vendor records.
The goal is to balance speed with security, while reducing back-and-forth emails between AP and procurement.
Three-Way Match: Automation that Reflects Reality
Three-way matching is central to AP controls—but it’s also complex. An intelligent platform should:
- Perform real-time validation between invoice, PO, and receipt.
- Support partial receipts, over-deliveries, and returns.
- Handle credit memos, discounts, and multi-subsidiary allocations.
- Allow special approvals to be triggered based on three-way match exceptions.
These nuances matter. By performing three-way matching inside NetSuite in real-time, you maintain transactional accuracy without manual reconciliation.
Payment Execution: Secure, Compliant, and Streamlined
Payments are the most sensitive phase of the AP process—and often the most overlooked in automation evaluations. Look for a platform that:
- Enables direct-to-bank payments without bank file exports.
- Allows users to approve payment batches for additional security.
- Supports ACH, wire, check, and global payment rails natively.
- Reconciles payment status automatically within NetSuite.
Manual file uploads and external banking portals introduce risk. Embedded payment workflows eliminate those vulnerabilities.
Real-Time Reporting & Insights
Strategic finance requires timely, accurate data. Embedded AP automation solutions:
- Leverage NetSuite’s native reporting engine.
- Centralize all AP activity for slice-and-dice analytics.
- Offer real-time visibility into accruals, pending approvals, and payment status.
With everything housed inside NetSuite, unlock faster closes and data integrity you can trust.
Security, Compliance & Maintenance: The Hidden Costs of Connectors
It’s easy to underestimate the long-term burden of integration-heavy platforms. Connectors introduce hidden liabilities in the form of:
Constant Maintenance
Every NetSuite release requires connector re-validation. Small API changes can break sync and stall invoice processing for days. IT teams end up chasing patches instead of building value.
Data Vulnerabilities
When AP data lives outside NetSuite, security weak points multiply:
- File-based payment exports can be intercepted.
- Multi-system authentication expands the attack surface.
- Audit trails become fragmented and unreliable.
Compliance Complexity
Industries governed by SOX, HIPAA, GDPR or industry-specific audit frameworks need a single source of truth. With split systems, organizations face:
- Increased audit prep time.
- Additional documentation requirements.
- Risk of non-compliance from missing or inconsistent data.
By contrast, embedded solutions operate entirely inside NetSuite. You get:
- A unified audit trail.
- Role-based access controls natively aligned with NetSuite’s security model.
- Fewer systems to govern, patch, and certify.
Security isn’t just about encryption—it’s about reducing moving parts.
Final Considerations: What to Ask Vendors
Before selecting an AP automation partner, ask questions that go deeper than feature lists:
- Is the solution built inside NetSuite or does it rely on an external platform and sync layer?
- How often do customers experience sync issues or reconciliation errors?
- What does it take to maintain the integration with every NetSuite upgrade?
- Can every AP function—invoice intake, approvals, payments, reporting—be performed within NetSuite itself?
- What is the total cost of ownership (TCO) including IT hours, connector fees, audit prep time, and rework from errors?
These questions reveal the true operational cost—not just the subscription price—of your AP investment.
Conclusion: The Future Is Native
Automation is no longer a differentiator—it’s an expectation. The next evolution is native automation: platforms built within your ERP that reduce complexity, increase speed, and eliminate risk.
Finance leaders are looking beyond functionality to architectural simplicity. AP platforms that live inside NetSuite—versus those that orbit it—offer:
- Greater reliability and fewer sync failures.
- Real-time visibility without reconciliation delays.
- Stronger compliance posture with less audit prep.
- Lower TCO with less IT overhead.
The choice is no longer between automation and manual processes. It’s between disjointed and embedded. Integration-less AP automation isn’t just a better tool—it’s a smarter model for NetSuite-driven businesses.
