Compare Bill.com, Melio, and BILL for accounts payable automation. Features, pricing, integration with QuickBooks, Xero, and accounting software.
Bill.com vs Melio vs BILL: Accounts Payable Automation Compared
Choosing accounts payable automation software isn't about fancy features. It's about eliminating the weekly nightmare of vendor payments: finding invoices, getting approvals, cutting checks, reconciling payments, and tracking what's been paid versus what's still outstanding.
After implementing AP automation for 40+ small and mid-size businesses, I've learned that manual accounts payable costs companies 8-15 hours weekly in inefficiency and creates three critical risks: late payment fees, duplicate payments, and fraud vulnerability from check-based payments.
This guide compares Bill.com, Melio, and BILL (yes, Bill.com rebranded to BILL, creating naming confusion) for accounts payable automation. We'll focus on what matters: payment methods, approval workflows, accounting integration, vendor experience, and real-world cost savings.
Clarification Note: Bill.com rebranded to BILL in 2021. In this guide, we use "BILL" to refer to the platform. When comparing to Melio, we're comparing the same BILL platform under its new brand name.
Quick Comparison Overview
| Feature |
BILL (formerly Bill.com) |
Melio |
| Best For |
Growing businesses with approval workflows |
Small businesses wanting free vendor payments |
| Starting Price |
$45/month |
Free (credit card payments 2.9%) |
| Payment Methods |
ACH, Check, International, Virtual Card |
ACH, Check, Credit Card |
| Approval Workflows |
Advanced multi-level approvals |
Basic approvals |
| Accounting Integration |
Excellent (QuickBooks, Xero, NetSuite) |
Good (QuickBooks, Xero) |
| Vendor Experience |
Self-service vendor portal |
Simple vendor payment selection |
| International Payments |
Yes (60+ countries) |
No |
| Sync Speed |
Real-time or scheduled sync |
Real-time sync |
| Mobile App |
Excellent |
Good |
| Document Management |
Robust OCR, unlimited storage |
Basic attachment storage |
BILL (formerly Bill.com): The Enterprise-Grade AP Platform
BILL is the most mature and feature-rich AP automation platform. It started serving small businesses and scaled up-market to serve mid-size companies and enterprises. This evolution shows in the platform's sophistication.
What BILL Does Best
Robust Approval Workflows
BILL's approval workflow engine is sophisticated. Set up multi-level approvals based on amount thresholds, departments, vendors, or custom rules. "All invoices over $5,000 require CFO approval" or "Marketing expenses require CMO approval then CEO approval over $10,000" are easy to configure.
Vendor Management and Portal
BILL's vendor portal is excellent. Vendors submit invoices directly, update their payment information, and see payment status. This self-service approach reduces email back-and-forth and ensures accurate payment details.
Multiple Payment Methods
BILL supports ACH (free), physical checks (mailed on your behalf), virtual credit cards, and international wire transfers. This flexibility accommodates different vendor preferences and payment requirements.
Document Management and OCR
Upload invoice PDFs or forward invoice emails to BILL. OCR (Optical Character Recognition) automatically extracts vendor name, amount, date, and line items. This automation eliminates manual data entry.
Accounting Integration Depth
BILL integrates deeply with QuickBooks, Xero, NetSuite, and Sage. Chart of accounts, classes, locations, and projects all sync bi-directionally. Approved bills automatically create in your accounting system.
Audit Trail and Compliance
Every action in BILL is logged: who uploaded invoice, who approved it, when payment was sent, when vendor cashed check. For companies needing SOC 2 compliance or audit trails, this visibility is essential.
Payment Scheduling
Schedule payments for future dates, batch multiple vendor payments, and optimize payment timing for cash flow management. Pay all vendors due next week in one batch on Friday.
International Payments
BILL supports international payments to 60+ countries via wire transfer or local payment methods. For companies with overseas vendors, this eliminates separate wire transfer processes.
Bill.com Divvy Integration
BILL acquired Divvy (corporate card platform). Integration allows physical cards, virtual cards for subscriptions, and corporate expense management alongside AP.
Advanced Reporting
Detailed spending reports by vendor, category, department, approver, and time period. Export data for analysis or executive reporting.
Where BILL Falls Short
Cost for Small Businesses
BILL starts at $45/month for Essentials plan (limited features) and $55-75/month for Team/Corporate plans. For small businesses paying 10-20 vendors monthly, this cost may not justify ROI.
Learning Curve
BILL is feature-rich, which means complexity. Training takes 2-4 hours per user. The admin setup requires understanding approval routing, sync rules, and configuration options.
ACH Payment Timing
BILL ACH payments typically take 5-7 business days from approval to vendor receipt. This lag requires planning. Some vendors need faster payment.
Credit Card Payment Fees
Paying with virtual cards through BILL involves fees and complexity. Melio's straightforward credit card payment model is simpler.
Vendor Adoption Required
BILL works best when vendors use the vendor portal. Getting vendors to adopt the portal takes email outreach and sometimes phone calls. Not all vendors cooperate.
Minimum Fees
Even on lower tiers, you're paying $45-75/month regardless of transaction volume. Low-volume businesses may find this expensive.
Best Use Cases for BILL
Growing Businesses (10-100 employees)
Companies with growing vendor count, multiple approvers, and need for workflow automation benefit from BILL's sophisticated features.
Businesses with Complex Approval Hierarchies
Companies requiring multi-level approvals (department head → controller → CFO) need BILL's workflow engine.
Companies with International Vendors
If you pay overseas contractors, suppliers, or service providers, BILL's international payment capability eliminates separate wire transfer processes.
Finance Teams Wanting Audit Trails
Companies needing SOC 2 compliance, audit documentation, or detailed financial controls benefit from BILL's logging and approval tracking.
Businesses Eliminating Paper Checks
Companies still cutting physical checks waste 2-5 hours weekly on printing, signing, mailing, and reconciling. BILL eliminates this entirely.
Melio: The Free AP Solution
Melio takes a radically different approach to AP automation. Instead of subscription fees, Melio is free for ACH and check payments. They make money on credit card payment processing (2.9%) and optional express ACH ($5-20 per payment).
What Melio Does Best
Free for Core Functionality
Melio's ACH and check payments are completely free. No monthly subscription, no per-transaction fees. For small businesses with 10-30 vendor payments monthly, this is $500-900 annual savings vs. BILL.
Credit Card Payment to Any Vendor
Melio's killer feature: pay any vendor via credit card, even if they only accept checks or ACH. Melio charges your card (2.9% fee), then sends the vendor ACH or check. This enables credit card float and rewards on business expenses that normally require checks.
Simplicity and Ease of Use
Melio is remarkably simple. Add vendor, enter amount, select payment method, schedule payment. No complex configuration, no approval workflow setup. New users are productive in 15 minutes.
Accounting Integration
Melio integrates with QuickBooks Online and Xero. Bills sync automatically, payments sync back to accounting software, and reconciliation is straightforward.
Vendor Payment Choice
Vendors receive email asking how they want to be paid: ACH (instant setup) or check (mailed to them). Vendors control their payment preferences without you managing payment details.
Scheduled and Recurring Payments
Set up recurring vendor payments (rent, software subscriptions, retainers) to automate monthly payments. Schedule one-time payments for future dates to manage cash flow.
Mobile App
Approve and schedule payments from mobile app. For business owners traveling or working remotely, mobile payment approval prevents delays.
Bank-Level Security
Melio is bank-certified, encrypted, and backed by major financial institutions. Your bank account and payment data are secure.
No Vendor Adoption Required
Unlike BILL's vendor portal approach, Melio doesn't require vendors to create accounts or change their processes. You simply pay them via their preferred method.
Where Melio Falls Short
No Advanced Approval Workflows
Melio has basic approval (require second person to approve payments) but not sophisticated multi-level workflows. Companies needing "manager approves under $1,000, director approves $1,000-$5,000, CFO approves over $5,000" rules hit limitations.
Limited Document Management
You can attach invoices to payments, but there's no OCR, no invoice extraction, and no robust document organization. It's a payment tool, not a document management system.
Credit Card Fees Add Up
The 2.9% credit card fee is standard, but it adds up quickly. Paying $50,000 monthly via credit card costs $1,450 in fees. Only worth it if you're earning equivalent credit card rewards (2-3% cash back or points).
No International Payments
Melio is US-only. You can't pay international vendors. Companies with overseas contractors or suppliers need separate solutions.
Basic Reporting
Reporting is simple: list of payments, spending by vendor, payments by month. No sophisticated analysis, custom reports, or detailed spending breakdowns.
Accounting Sync Limitations
While Melio integrates with QuickBooks and Xero, the sync is basic. BILL's deep integration with classes, locations, and custom fields is more sophisticated.
ACH Timing Variability
Standard Melio ACH takes 5-7 business days. Express ACH ($5-20 fee) delivers in 1-2 days. For time-sensitive payments, you're paying extra or using credit card (2.9% fee).
No Multi-Entity Support
Managing multiple legal entities or separate business bank accounts in Melio is clunky. BILL handles multi-entity workflows more elegantly.
Best Use Cases for Melio
Small Businesses (1-25 employees)
Solo entrepreneurs, small agencies, and local businesses with straightforward vendor payments benefit from Melio's free model and simplicity.
Companies Wanting to Maximize Credit Card Rewards
If you earn 2-3% cash back or valuable points on a business credit card, paying vendors via Melio (2.9% fee) can be ROI-positive or neutral while providing 30-day float.
Businesses with Simple Approval Needs
Companies where owner/manager approves everything don't need BILL's complex workflows. Melio's basic approval suffices.
Budget-Conscious Operations
Startups and small businesses where $500-900 annual software savings matters will appreciate Melio's free core offering.
Companies Paying Primarily Domestic Vendors
If all your vendors are US-based and accept ACH or checks, Melio covers your needs completely.
Feature-by-Feature Comparison
Payment Methods
BILL:
- ACH (free for vendors, $0.49/payment for non-users)
- Physical checks mailed ($1.69/check)
- Virtual credit cards (earn rebates)
- International wire transfers ($20-50/payment)
Melio:
- ACH (free, 5-7 business days)
- Express ACH ($5-20/payment, 1-2 business days)
- Physical checks mailed (free)
- Credit card to any vendor (2.9% fee)
Winner: BILL for variety and international, Melio for domestic cost.
Approval Workflows
BILL: Sophisticated multi-level approval workflows with conditional rules based on amount, department, vendor, or custom criteria. Sequential or parallel approvals. Detailed approval chains.
Melio: Basic approval requiring second person to approve payments. No complex routing or amount-based rules.
Winner: BILL significantly.
Accounting Integration
BILL: Deep integration with QuickBooks Online, QuickBooks Desktop, Xero, NetSuite, Sage Intacct. Syncs bills, payments, vendors, chart of accounts, classes, locations, and custom fields. Bi-directional sync.
Melio: Good integration with QuickBooks Online and Xero. Syncs bills and payments. Basic chart of account mapping. Lighter integration than BILL.
Winner: BILL for depth, Melio adequate for small business needs.
Document Management
BILL: Robust document management. OCR extracts invoice data automatically. Forward invoices via email to auto-create bills. Unlimited document storage. Search invoices by vendor, date, amount, or OCR text.
Melio: Basic invoice attachment. Upload PDFs or images. No OCR or automatic data extraction. Simple document storage.
Winner: BILL significantly.
Vendor Experience
BILL: Vendors receive invitation to vendor portal. They create account, submit invoices, update payment info, and track payment status. Self-service reduces admin burden but requires vendor adoption.
Melio: Vendors receive email asking payment preference (ACH or check). Simple one-click response. No account creation required. Low friction but less self-service capability.
Winner: BILL for sophisticated vendor management, Melio for vendor simplicity.
Reporting and Analytics
BILL: Comprehensive reporting. Spending by vendor, category, approver, department. Aging reports, cash flow forecasts, payment history. Custom report builder. Scheduled email reports.
Melio: Basic reporting. Payment list, spending by vendor, monthly totals. Adequate but not sophisticated. Export to CSV for custom analysis.
Winner: BILL significantly.
Mobile Experience
BILL: Excellent mobile app. Approve invoices, view payment status, manage vendors, capture receipt photos. Full functionality on mobile.
Melio: Good mobile app. Schedule and approve payments, view payment history, add vendors. Core functionality available but lighter than BILL.
Winner: BILL for features, both adequate for core mobile needs.
Security and Compliance
BILL: SOC 2 Type II certified, bank-level encryption, multi-factor authentication, detailed audit logs, role-based permissions. Enterprise-grade security.
Melio: Bank-certified security, encrypted data, backed by major banks. Secure but less emphasis on enterprise compliance features.
Winner: BILL for enterprise needs, both secure for small business.
Pricing Deep Dive
BILL Pricing
Essentials: $45/month
- Pay bills via ACH or check
- Basic approvals
- QuickBooks Online or Xero sync (one connection)
- Mobile app
Team: $55/month
- Everything in Essentials
- Advanced approvals and workflows
- Custom roles and permissions
- Multiple accounting connections
Corporate: $75/month
- Everything in Team
- NetSuite or Sage Intacct integration
- Dedicated support
- Enhanced security and controls
Payment Fees:
- ACH to BILL vendor: Free
- ACH to non-BILL vendor: $0.49/payment
- Check payment (printed and mailed): $1.69/check
- International payment: $20-50 depending on destination
Real Cost Examples:
Scenario 1: 30 vendor payments/month (25 ACH, 5 checks)
- Team plan: $55/month
- ACH fees (assume 15 vendors not on BILL): $7.35
- Check fees: $8.45
- Total: $70.80/month ($850/year)
Scenario 2: 50 vendor payments/month (40 ACH, 10 checks)
- Corporate plan: $75/month
- ACH fees (assume 25 vendors not on BILL): $12.25
- Check fees: $16.90
- Total: $104.15/month ($1,250/year)
Melio Pricing
Base Platform: Free
Payment Fees:
- ACH (standard 5-7 days): Free
- Physical check (printed and mailed): Free
- Express ACH (1-2 days): $5-20/payment depending on amount
- Credit card payment: 2.9% of payment amount
Real Cost Examples:
Scenario 1: 30 vendor payments/month, all via free methods (ACH/check)
- Total: $0/month ($0/year)
Scenario 2: 30 vendor payments/month, 20 via ACH (free), 10 via credit card averaging $2,000 each
- ACH: $0
- Credit card fees: 10 × $2,000 × 2.9% = $580
- Total: $580/month ($6,960/year)
Note: Credit card scenario only makes sense if you earn 2-3% rewards, offsetting the 2.9% fee, or if you value the cash flow float.
Scenario 3: 30 vendor payments/month, all via free ACH/check
- Total: $0/month ($0/year)
Cost Comparison Summary
For typical small business (30 payments/month via ACH and check):
- BILL Team: ~$850/year
- Melio: $0/year (if using free payment methods)
For business using credit card payments (30 payments/month, $40k total):
- BILL Team: ~$850/year
- Melio with credit card: ~$14,000/year in fees (2.9% of $480k annually)
The Credit Card Calculation: Only use Melio's credit card feature if you earn ≥2.9% rewards or value the float. Otherwise, use free ACH/check methods.
Implementation and Setup
BILL Implementation
Timeline: 2-4 weeks
Week 1:
- Account setup and bank connection
- Accounting software integration
- Chart of accounts mapping
- Import vendors from accounting system
Week 2:
- Configure approval workflows
- Set up user roles and permissions
- Create bill entry rules and automation
- Import historical open bills
Week 3:
- Team training (2-4 hours per user)
- Vendor invitation and onboarding
- Test payment processing
- Parallel run with existing process
Week 4:
- Full transition
- Monitor and refine workflows
- Address vendor questions
Internal Time: 15-30 hours for finance/operations lead
Training Investment: 2-4 hours per user for approvers/bill entry staff
Success Factors:
- Clean vendor data before import
- Start with simple approval workflows, add complexity gradually
- Proactively invite vendors to portal
- Run parallel with existing process for 2-3 payment cycles
Melio Implementation
Timeline: 3-5 days
Day 1:
- Account setup
- Bank account connection
- Accounting integration (QuickBooks or Xero)
Day 2-3:
- Add vendors (import from accounting or enter manually)
- Test 1-2 payments
- Set up any recurring payments
Day 4-5:
- Team training (30-60 minutes)
- Process first real payment batch
- Monitor payment delivery
Internal Time: 3-6 hours for operations lead
Training Investment: 30-60 minutes per user
Success Factors:
- Import vendors from accounting software rather than manual entry
- Test with 2-3 vendor payments before committing
- Understand ACH timing (5-7 days) and plan accordingly
- Set up recurring payments for monthly vendors
Integration with Accounting Software
QuickBooks Online Integration
BILL:
- Bi-directional sync
- Bills created in QuickBooks appear in BILL
- BILL payments sync back to QuickBooks
- Syncs chart of accounts, classes, locations, customers
- Real-time or scheduled sync options
- Detailed field mapping customization
Melio:
- Bi-directional sync
- Bills from QuickBooks appear in Melio
- Melio payments sync to QuickBooks
- Basic chart of accounts sync
- Real-time sync
- Simpler mapping, less customization
Winner: BILL for depth and customization, Melio for simplicity.
Xero Integration
BILL:
- Robust two-way sync
- Bills, payments, vendors sync
- Tracking categories and tax codes supported
- Scheduled sync options
Melio:
- Good two-way sync
- Bills and payments sync
- Basic tracking category support
- Real-time sync
Winner: BILL for advanced Xero features, both adequate for basic needs.
NetSuite and Sage Intacct
BILL: Native integration available on Corporate plan. Deep sync with ERP systems for mid-market companies.
Melio: No native integration. Not designed for ERP-level accounting systems.
Winner: BILL exclusively for ERP integration.
Workflow Automation Examples
BILL Workflow Examples
Example 1: Amount-Based Approval Ladder
- Invoices $0-$1,000: Auto-approved (no human approval needed)
- Invoices $1,000-$5,000: Department manager approval
- Invoices $5,000-$20,000: Department manager → Controller approval
- Invoices $20,000+: Department manager → Controller → CFO approval
Example 2: Department-Based Routing
- Marketing invoices: CMO approval
- Engineering invoices: CTO approval
- Operations invoices: COO approval
- Accounting invoices: Controller approval
Example 3: Vendor-Based Rules
- Recurring vendors (rent, utilities, software): Auto-approved and auto-paid on due date
- New vendors: Require CFO approval regardless of amount
- International vendors: Require additional compliance check
These sophisticated workflows are easy to configure in BILL's approval engine.
Melio Workflow Examples
Example 1: Basic Dual Approval
- All payments require second person approval
- Person A schedules payment
- Person B receives notification and approves/rejects
Example 2: Recurring Automation
- Set up rent ($5,000/month) as recurring payment
- Auto-pays first of every month
- No approval required for recurring payments
Melio's workflows are simpler but adequate for small businesses without complex approval hierarchies.
Real-World Examples
SaaS Company (45 employees) - Chose BILL
A Series B SaaS company with 80+ vendors monthly, multi-level approval requirements, and international contractors chose BILL Corporate plan.
Why BILL Won:
- Required CFO approval for all payments over $10,000
- Needed detailed audit trail for board reporting and eventual SOC 2 compliance
- International contractors in 8 countries required international payment capability
- Accounting team wanted deep NetSuite integration
Implementation: 4 weeks. Finance operations manager spent 25 hours on setup. Hired BILL implementation consultant ($2,500) to optimize workflows.
Results:
- Eliminated 12 hours weekly of manual check processing and reconciliation
- Reduced late payment fees by $8,000 annually (automated payment scheduling)
- Achieved SOC 2 compliance 6 months earlier (audit trail and controls)
- International payments saved $2,400 annually vs. bank wire fees
Annual Cost:
- BILL Corporate: $900/year
- Payment fees (estimated): $400/year
- Total: $1,300/year
ROI: Saved $10,400 in late fees and wire fees, plus 624 hours annually (12 hours/week × 52 weeks) worth ~$31,000 at $50/hour loaded cost. Total ROI: $41,400 annually for $1,300 investment.
Marketing Agency (12 employees) - Chose Melio
A boutique marketing agency with 25-30 vendor payments monthly, simple approval needs, and tight budget chose Melio.
Why Melio Won:
- Free eliminated $600-900 annual cost of BILL
- Simple approval (owner reviews, operations manager processes) didn't require complex workflows
- Credit card payment option for vendor payments enabled earning travel rewards (2.5% back)
- All vendors were US-based (no international payments needed)
Implementation: 3 days. Operations manager spent 4 hours on setup, vendor import, and team training.
Results:
- Eliminated 6 hours weekly of check writing, mailing, and reconciliation
- Earned $4,800 annually in credit card rewards (paying $160k vendor expenses via card at 2.5% back, net of 2.9% fee = -0.4% cost but accepted for rewards/float)
- Actually cost $640/year in net fees but earned $4,800 in rewards points for net positive $4,160
- Improved cash flow through credit card float (30-day payment delay)
Annual Cost:
- Melio: $0 base
- Credit card fees: $4,640 (2.9% of $160k)
- Credit card rewards earned: -$4,000 (2.5% back)
- Net cost: $640/year
ROI: Saved 312 hours annually (6 hours/week × 52 weeks) worth ~$15,600 at $50/hour loaded cost, plus earned rewards. Total ROI: $19,760 for $640 cost.
Professional Services Firm (28 employees) - Chose BILL
A consulting firm with 40-60 vendor payments monthly, partners requiring approval visibility, and mix of domestic/international vendors chose BILL Team plan.
Why BILL Won:
- Multiple partners needed approval visibility and audit trail
- International contractors in UK, India, and Australia (15% of vendor payments)
- Wanted to eliminate partner time spent signing checks (2 partners × 1 hour weekly = 104 hours annually)
- QuickBooks integration needed to sync classes (tracking by client engagement)
Implementation: 3 weeks. Finance coordinator spent 20 hours on setup and vendor onboarding.
Results:
- Eliminated 2 hours weekly of partner check-signing time
- Reduced duplicate payments (happened 3x per year with manual process, costing $8,400 total)
- International payment saved vs. bank wires: ~$1,800 annually
- Improved vendor relationship (faster payment, automatic remittance)
Annual Cost:
- BILL Team: $660/year
- Payment fees: ~$600/year (mix of ACH and checks)
- Total: $1,260/year
ROI: Saved 104 partner hours annually worth ~$20,800 at $200/hour partner billing rate. Eliminated $8,400 in duplicate payments. Saved $1,800 on international wire fees. Total ROI: $31,000 for $1,260 investment.
Security and Fraud Prevention
BILL Security Features
- Bank-Level Encryption: 256-bit SSL encryption for all data
- Multi-Factor Authentication: Required for all users
- Role-Based Permissions: Granular control over who can create, approve, pay bills
- Audit Logs: Complete history of all actions with user, timestamp, IP address
- SOC 2 Type II Certified: Annual third-party security audits
- Positive Pay Integration: Prevent check fraud through bank positive pay
- Vendor Verification: BILL verifies vendor bank accounts to prevent fraud
Fraud Prevention: BILL's approval workflows and audit trails dramatically reduce fraud risk. Segregation of duties (different people enter bills, approve bills, and process payments) is easily enforced.
Melio Security Features
- Bank-Certified: Melio is backed and certified by major US banks
- 256-bit Encryption: Bank-level data security
- Two-Factor Authentication: Optional but recommended
- Secure Bank Connections: No storage of bank login credentials
- Transaction Monitoring: Automated fraud detection
- FDIC Insurance: Partner banks provide FDIC insurance for funds in transit
Fraud Prevention: Melio's simpler model means fewer control points. The basic approval feature helps, but sophisticated fraud prevention requires external controls.
Winner: BILL for enterprise security and fraud prevention, Melio secure for small business needs.
Customer Support Comparison
BILL Support
- Phone Support: Available business hours (varies by plan)
- Email Support: 24-hour response time (faster on higher plans)
- Chat Support: In-app chat during business hours
- Knowledge Base: Extensive self-service articles, videos, guides
- Dedicated Support: Corporate plan includes dedicated account team
- Quality: Support team is knowledgeable about accounting and AP workflows
Rating: Excellent, especially on higher tiers.
Melio Support
- Phone Support: Available business hours
- Email Support: Fast response (typically same day)
- Chat Support: In-app chat
- Knowledge Base: Good self-service resources
- Social Support: Active on Twitter for quick questions
- Quality: Support is responsive and helpful
Rating: Very good, responsive and helpful.
Winner: BILL for enterprise support needs, both excellent for small business.
Migration and Change Management
Moving from Manual AP Process
To BILL:
- Export vendor list from accounting software
- Import to BILL with bank account details
- Enter open/unpaid bills or import from accounting sync
- Set up approval workflows
- Train team (2-4 hours per person)
- Run parallel for 2-3 payment cycles
- Transition fully
Timeline: 3-4 weeks
Effort: 20-30 hours
To Melio:
- Connect accounting software (auto-imports vendors)
- Verify vendor payment preferences
- Enter any bills not in accounting system
- Train team (30 minutes)
- Process first payments
- Transition immediately or run parallel for 1 cycle
Timeline: 1 week
Effort: 4-6 hours
Switching Between BILL and Melio
BILL to Melio (typically downgrade for cost savings):
- Export vendor list from BILL
- Import to Melio
- Open bills will need manual entry (or sync from accounting)
- Lose approval workflow sophistication
- Timeline: 1-2 weeks
Melio to BILL (typically upgrade for features):
- Export vendors from Melio or import from accounting
- Configure BILL approval workflows
- Set up vendor portal invitations
- Train team on new approval process
- Timeline: 2-3 weeks
- Effort: 15-20 hours
Decision Framework
Choose BILL If:
- You have 20+ vendor payments monthly
- You need multi-level approval workflows
- You pay international vendors regularly
- You want sophisticated reporting and analytics
- You need audit trails for compliance (SOC 2, SOX, etc.)
- You have budget for $850-1,500 annually
- You use NetSuite, Sage Intacct, or need deep accounting integration
- You want vendor self-service portal
- Your team can invest 2-4 hours in training
Choose Melio If:
- You have 5-30 vendor payments monthly
- You have simple approval needs (one or two people approve everything)
- All your vendors are US-based
- You want to maximize credit card rewards on business expenses
- You want free software (using ACH and check payment methods)
- You need very fast implementation (days, not weeks)
- You use QuickBooks Online or Xero (not enterprise ERP)
- You prioritize simplicity over sophisticated features
The Verdict
For most small businesses (under 30 employees, under 50 vendor payments monthly), Melio offers unbeatable value. Free software, simple process, and good accounting integration make it the obvious choice when sophisticated approvals aren't required.
For growing businesses (30-100 employees, complex approval needs, international vendors), BILL justifies the cost through time savings, fraud prevention, and operational control. The approval workflows, audit trails, and vendor management capabilities are worth $850-1,500 annually.
The ROI calculation is simple:
If manual AP takes 5+ hours weekly, AP automation saves 260 hours annually. At $50/hour loaded cost, that's $13,000 in savings. Both BILL and Melio pay for themselves immediately.
The choice comes down to sophistication needs:
- Simple AP needs: Melio (free or low-cost)
- Complex AP workflows: BILL (worth the investment)
Try both:
- Sign up for free Melio account
- Request BILL demo and trial
- Process 5-10 payments in each platform
- Evaluate which workflow fits your team's sophistication level
- Calculate your specific ROI based on hours saved
The best AP automation software is the one that eliminates manual payment processing while fitting your approval complexity and budget. Choose accordingly.
Frequently Asked Questions
Can I use both BILL and Melio simultaneously?
Technically yes, but it's unnecessarily complex. Choose one platform for all AP to maintain single source of truth and avoid reconciliation headaches.
Which integrates better with QuickBooks?
BILL has deeper integration with more field mapping and customization. Melio's integration is simpler but adequate for most small businesses. Both sync bills and payments reliably.
Is it worth paying vendors by credit card through Melio?
Only if you earn ≥2.9% rewards or highly value the 30-day cash flow float. Calculate your specific card's rewards rate. Many 2% cash back cards don't justify the 2.9% fee. Travel rewards cards earning 2.5-3% points can make sense.
How do I handle vendor adoption of BILL's portal?
Send personalized invitations explaining the benefit to vendors (faster payment, self-service). Follow up by phone for key vendors. Expect 60-70% adoption over 3-6 months. Remaining vendors can still be paid without portal access.
Can I schedule payments in advance for cash flow management?
Yes, both platforms support scheduled future payments. BILL's batching and payment scheduling is more sophisticated. Melio supports scheduling individual payments and recurring payments.
What happens if I pay the same invoice twice?
BILL: Audit trail helps identify duplicates. Some duplication prevention built-in. Can reverse/void payments.
Melio: Less sophisticated duplicate detection. You're responsible for catching duplicates. Cannot reverse payments once sent (must request refund from vendor).
Which is better for multi-entity businesses?
BILL handles multiple legal entities more elegantly with separate approvals, reporting, and bank accounts per entity. Melio requires workarounds or separate accounts per entity.
Do either platforms help with accounts receivable (AR)?
BILL offers Accounts Receivable module (additional cost). Melio is AP-only. For comprehensive AR automation, consider BILL's AR add-on or separate tools like Stripe Billing or Invoice2go.
CEDAR OPERATIONS