Top 6 invoice processing software providers in the UK in 2025

Managing supplier invoices doesn’t need to be slow, manual, or fragmented. However, many UK businesses still rely on outdated processes – spreadsheets, email approvals, and siloed tools – to manage what should be a streamlined workflow.

To fix that, here’s a guide to six of the best invoice processing software solutions available in the UK in 2025.

What is invoice processing software?

Invoice processing software automates how businesses receive, approve, and pay invoices. It typically includes features like:

• Optical character recognition (OCR) to extract data from PDFs and scans

• Custom approval workflows

• Accounting integrations (e.g. Xero, Sage, QuickBooks)

• Audit trails and compliance checks

• Payment scheduling and reconciliation

The right tool will lead to fewer errors, faster approvals, and better visibility over spend.

Read more: Step-by-step: How to send an invoice that gets paid faster

Why UK businesses need invoice processing tools in 2025

Finance functions are under pressure to do more with less – and to stay compliant while doing it. Here’s why UK businesses are using smarter invoice tools:

• Making Tax Digital (MTD) compliance: HMRC now expects digital records and submissions. Manual tracking risks non-compliance¹.

• Rising costs: Late fees, double payments, and admin time all eat into the bottom line.

• Distributed teams: With hybrid work the norm, cloud-based invoice tools keep approvals moving without email chains.

• Audit readiness: Clean digital trails make year-end – and audits – far easier to manage.

With that in mind, you might want to check out the top 5 accounts payable software and tools in the UK in 2025.

Key features to look for in invoice processing software

Not all invoice tools are built with UK businesses in mind. As finance teams become leaner and more tech-savvy, expectations for what an invoice system should do have changed. Here’s what to look for in 2025:

1. Automation and OCR

Manual data entry slows everything down and introduces risk. The best platforms now use Optical Character Recognition (OCR) to extract invoice data – including supplier names, dates, VAT rates, and line items – straight from PDFs or scans. This eliminates repetitive admin and reduces the chance of human error. Look for solutions that also flag duplicate invoices, suggest GL codes, and auto-match POs to bills.

2. Effective integrations with your accounting stack

Invoice processing should fit into your existing workflows, not force you to rebuild them. Prioritise tools that integrate cleanly with UK-favoured platforms like Xero, Sage, and QuickBooks. This keeps your chart of accounts, supplier records, and payment data in sync automatically – no more exporting and reuploading CSVs. Some tools also push approved invoices directly into your accounting software for reconciliation.

3. UK VAT and Making Tax Digital (MTD) compliance

With HMRC’s Making Tax Digital framework now a requirement for most businesses, your invoice system needs to be compliant out of the box. That means digital record-keeping, proper VAT categorisation, and compatible exports. Platforms that offer built-in VAT validation, automated categorisation, and HMRC-recognised data formats can save you time and protect you from penalties.

4. Multi-currency support

For businesses with international suppliers – even just a few – handling FX manually is a pain. Look for invoice software that lets you approve and pay in multiple currencies, converts amounts using live rates, and reconciles FX fees automatically. Platforms like Airwallex offer real-time currency conversion and local payouts, which can lead to significant cost savings.

5. Mobile-ready and easy to use

Approvals often get stuck when finance managers or budget holders are away from their desks. Choose tools that offer mobile-friendly access – ideally with dedicated apps – so that teams can review, approve, or query invoices wherever they are. A clean, intuitive interface is just as important. If your team finds it frustrating or confusing, they won’t use it.

6. Cloud-native infrastructure

Legacy, desktop-based systems are no longer fit for purpose. A good invoice solution should be fully cloud-based – enabling real-time collaboration, automatic updates, secure backups, and API access for custom integrations. Cloud-native also means it’s ready for distributed teams and scalable as your business grows.

7. UK-based customer support

Invoice processing touches on compliance, tax, and payment processes – areas where you don’t want to wait days for help. Prioritise providers that offer UK-based support or at least a strong local presence. Teams that understand HMRC requirements and UK finance culture can resolve issues faster and provide more relevant advice.

Read more: The small business guide to invoices

Top invoice processing software for UK businesses

We’ve researched from publicly available information how each platform stacks up against the must-haves for UK finance teams. We looked at automation and OCR, accounting integrations, UK VAT handling, currency flexibility, mobile access, and local support. Here are our top picks for 2025:

Airwallex – End-to-end invoice automation with built-in global payments

Airwallex (that’s us!) is an end-to-end financial platform designed for modern businesses. Our Bill Pay feature simplifies and automates the entire accounts payable process – from invoice upload through to payment and reconciliation – all within your Airwallex Business Account.

Invoices are scanned using AI-powered OCR, automatically extracting key details and triggering custom approval workflows. Once approved, you can pay domestic or international suppliers in a few clicks, to 200 countries with 95% arriving same day or within a few hours – no need to copy payment details into a bank portal or rely on separate tools, either.

Because Airwallex combines invoice processing with Global Accounts, FX, and team spend controls, UK finance teams gain full visibility and control over payables, all in one platform.

Key features:

• AI-powered OCR for automatic invoice data extraction

• Custom approval workflows with audit trails

• Pay suppliers in more than 200+ countries at interbank rates

• Multi-currency support with market-leading FX rates

• Deep integrations with Xero, QuickBooks, NetSuite

• Vendor management feature to keep track of suppliers

• Fully cloud-based with intuitive desktop and mobile access

• Supports UK tax workflows and MTD-compliant accounting tools

• Backed by a UK-based team and FCA-regulated infrastructure

Sage Intacct – Good compliance and financial controls

Sage Intacct is a mature cloud accounting suite built for companies with complex finance structures. It offers advanced automation, audit-ready controls, and deep tax handling, including full UK VAT compliance and MTD submission. It’s useful for mid-market firms scaling up.

Key features:

• OCR and approval workflows built in or via partners

• Deep Sage-native integration and broad ERP ecosystem

• UK VAT engine and MTD-compliant reporting

• Multi-currency GL and entity consolidation

• Cloud-based; mobile access less of a focus

• UK-based support and implementation partners

Pleo – Fast, user-friendly, and built for modern teams

Pleo brings together invoice processing and employee expenses with automation, custom controls, and a user-first design. UK finance teams can capture bills, assign approvals, track VAT, and pay suppliers.

Key features:

• Invoice OCR and real-time approvals

• Seamless integration with Xero, QuickBooks, Sage

• Auto-VAT tracking and UK compliance support

• GBP, EUR, and USD payment capabilities

• Highly rated mobile and desktop apps

• UK-based support with localised resources

FreeAgent – All-in-one for sole traders and micro businesses

FreeAgent combines accounting, invoicing, tax and payroll in one UK-focused platform. It’s especially well suited to freelancers and small limited companies that want simplicity, not a suite of tools.

Key features:

• Simple receipt scanning and expense tracking

• No third-party integrations – standalone system

• Full UK VAT, MTD, and Self Assessment support

• GBP-native; basic multi-currency handling

• Web and mobile apps designed for ease of use

• UK-based customer service and NatWest integration

Airbase – Controls and consolidation for scaling finance teams

Airbase unifies invoice automation, card spend, and expense management. Designed for modern finance teams, it delivers approval logic and real-time visibility, with support for global payment flows and major accounting platforms.

Key features:

• OCR and approval routing across departments

• Integrates with Xero, Intacct, NetSuite, QBO

• VAT workflows configurable via accounting tools

• Global payments with FX tracking

• Cloud-native with modern user interface

• Limited UK footprint; support US-based

Tipalti – Global payment automation at enterprise scale

Tipalti is an end-to-end AP automation solution. It combines invoice capture, tax validation, compliance, and international payouts at scale – making it useful for UK businesses with large supplier bases.

Key features:

• OCR, approvals, and tax validation in one system

• Integrates with NetSuite, Intacct, QBO, Xero, Sage

• MTD-ready with robust UK VAT handling

• Pay to 200+ countries in 120+ currencies

• Cloud platform with detailed audit logs

• UK office and local support for enterprise clients

Side-by-side comparison of the top UK invoice processing software

How to choose the right invoice software  

Use this checklist to narrow down your options based on where your business is today, and where you're heading next.

Team size and structure

• Small teams may need simple, standalone tools with minimal setup.

• Mid-sized businesses often require layered approvals, role-based permissions, and integration with broader finance workflows.

• Scaling companies benefit from platforms that support multi-entity operations, consolidated reporting, and centralised spend controls.

If your team is growing or distributed, prioritise flexibility and automation that won’t add complexity.

Software stack and integrations

• Look for software that connects directly to your existing accounting tools, such as Xero, QuickBooks, NetSuite, or Sage.

• Native integrations reduce reconciliation errors, eliminate duplicate data entry, and keep finance records clean.

• API availability or open architecture can support future needs.

Strong integrations help boost accuracy and operational efficiency.

International payments and FX

• If you pay overseas suppliers, choose software that supports multi-currency payments and has built-in FX capabilities.

• Local payment rails in key markets (e.g. Europe, US, Asia) help reduce fees and improve processing speed.

• Consolidating payments and invoice approvals in one place reduces friction.

For businesses with global ambitions, this functionality quickly becomes important.

Budget and pricing model

• Check whether the platform charges flat monthly fees or scales by transaction volume or feature set.

• Consider total cost of ownership, including any need for additional bank tools, FX platforms, or approval add-ons.

• Look at how quickly the system could reduce processing time, errors, or software redundancy.

Tools that streamline multiple workflows often offer better value than niche solutions.

Compliance and control

• Ensure the platform supports Making Tax Digital (MTD), UK VAT rules, and audit-ready documentation.

• Look for features like custom approval workflows, audit trails, and permission-based access.

• Support for invoice attachments, automated tax coding, and exportable records can simplify year-end processes.

Regulatory compliance shouldn’t rely on manual workarounds, especially as you scale.

User experience and support

• Platforms should be intuitive for both finance and non-finance users.

• Clear workflows, notifications, and mobile access all support faster approvals and fewer bottlenecks.

• UK-based customer support and FCA-regulated infrastructure offer confidence when handling sensitive financial data.

Ease of use drives adoption. Local support ensures your team gets answers when they need them.

Key questions to ask when choosing invoice software

Will it scale with my team and structure?

Can it support approvals, permissions, and multiple entities as we grow?

Does it connect to my accounting software?

Will it sync directly with tools like Xero, QuickBooks, or Sage?

Can it handle international payments?

Does it support multi-currency invoices and offer built-in FX?

How much does it really cost?

Are fees clear, and could it replace other tools or manual work?

Will it simplify our current workflow?

Can we receive, approve, and pay invoices in one place?

Conveniently automate your online bill pay processes in one place

With Airwallex, you upload, approve, pay, and reconcile your domestic and international bills all from the same account. You can:

• Process and pay invoices in one place

• Save time with automation and OCR

• Get visibility over cash flow and upcoming payables

• Use virtual cards, global accounts, and batch payments

• Eliminate currency markups with market-leading FX

There’s no clunky onboarding or fragmented systems. Just smart finance infrastructure, ready to grow with your business.

What else can Airwallex do?

Invoice processing is just one part of the Airwallex platform. You also get:

• Global business accounts in multiple currencies

• Market-leading FX with real-time rates

• Virtual and physical cards for team spend

• Batch payments and payroll tools

• Multi-entity support with centralised controls

• Integrations with Xero, NetSuite, and QuickBooks

• Built-in compliance and audit-ready reporting

Simplify your invoice workflows 

With invoice processing software, your finance team can move faster, stay compliant, and stay focused on what matters. In 2025, the right choice is a platform that fits your business now and scales with you later.

Airwallex gives you everything you need in one place, and a lot more.

Disclaimer and references

The information in this article is based on our own online research in Q2 2025. Airwallex was not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. This research is reviewed annually. If you would like to request an update, feel free to contact us at [[email protected]]. This information doesn’t take into account your objectives, financial situation, or needs. 

1. gov.uk/government/news/making-tax-digital-for-vat-is-coming-are-you-ready

2. https://www.airwallex.com/uk/pricing 

3. sage.com/en-us/sage-business-cloud/intacct/product-capabilities/extended-capabilities/invoicing/

4. pleo.io/en/invoices

5. freeagent.com/features/invoicing/

6. airbase.com/

7. tipalti.com/en-uk/