How to Write an Accounts Payable Software RFP
Writing an RFP helps you clearly define your needs and compare vendors, ensuring you get the right accounts payable software for your team
You might skip an RFP if your organization is small or has simple needs, where quick decisions and minimal features are enough
A well-crafted RFP can lead to better software fit and competitive pricing, saving you time and money in the long run
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Do You Actually Need an RFP?
An RFP is essential when your team faces complex requirements or operates in a regulated industry where compliance is key. If you're dealing with a large vendor pool or need to integrate with legacy systems, an accounts payable software RFP helps clarify expectations and avoid costly mistakes.
Here are some common scenarios where you might need to consider an RFP:
- Complex regulatory compliance needed
- Large vendor pool to evaluate
- Integration with existing systems required
- High transaction volumes
- Long-term vendor relationship expected
When an RFP Might be Overkill
On the other hand, if your team has straightforward needs or operates in a smaller organization, an RFP might just add unnecessary steps. For quick decisions or when evaluating a small number of vendors, skip the RFP and dive right into your top choice of accounts payable software:
Top Accounts Payable Software To Consider
Here’s my list of the top 10 accounts payable software options available, to help you get started in your search:
RFI vs RFP vs RFQ: What’s the Difference?
Understanding the differences between RFI, RFP, and RFQ can help your team choose the right path for purchasing, saving you time and reducing friction.
For example, an RFI gathers general information, an RFP seeks detailed proposals, and an RFQ focuses on pricing. Knowing which document to use ensures you get the most value from your vendors.
Here’s a breakdown of each option, their purpose, and when you need them most:
| Document Type | Purpose | When to Use | What to Include | Level of Detail Required |
| Request for Information (RFI) | Gather basic info about vendors and solutions | When exploring options without firm decisions | Vendor capabilities, product features | Low |
| Request for Proposal (RFP) | Request detailed solutions and proposals | When ready to evaluate detailed offerings | Specific needs, evaluation criteria, timelines | Medium to High |
| Request for Quotation (RFQ) | Obtain pricing and terms | When you know what you need and seek price quotes | Quantity, specifications, delivery terms | High |
Common RFP Mistakes to Avoid
It’s important to always craft your accounts payable software RFP with care. Rushing or skipping key details in an RFP can lead to confusion, wasted time, or poor-fit vendors.
By avoiding a few common mistakes, your team can create a smoother selection process:
Insufficient Background or Context
Without enough background or context, vendors may not fully understand your needs, leading to unsuitable proposals.
When crafting your RFP, clearly explain your business, current AP processes, future goals, and challenges. This helps vendors tailor their solutions to fit your specific situation, making it more likely you’ll find a solution that fits your unique needs.
Missing or Unclear Budget
Not stating your budget or being vague about it can lead to proposals that don't match your financial constraints. Be upfront about how much you're willing to spend on an accounts payable solution to help vendors propose realistic solutions that fit your budget.
Vague Requirements or Legal Jargon
Using unclear requirements or too much legal jargon can confuse vendors and lead to misaligned proposals. Do you need easier access to purchase orders, integration with your current accounting system, or streamlined cash flow?
It’s important to always be specific about what you need and use plain language, so you can choose from a list of options that meet your requirements.
No Evaluation Criteria Shared
If you don't share how you'll evaluate proposals, vendors won't know what to focus on. In your RFP, clearly outline what matters most to you, like key features or advanced support. This guidance helps vendors better align their proposals with your priorities and current accounts payable process.
No Standard Format for Vendor Responses
Without a standard format for responses, comparing proposals becomes difficult. Provide a template or outline for vendors to follow, so your team can evaluate and compare software solution submissions effectively.
Assemble Your Accounts Payable Software RFP Team
Creating a strong RFP isn’t a solo job; it needs input from a cross-functional group to ensure all needs are met. With the right team chosen early in the process, you can reduce risk and avoid rework later. Here’s who you might want to include:
Project Sponsor
The project sponsor provides the vision and ensures the RFP aligns with overall business goals and cost savings initiatives. Their role is to help secure resources and make high-level decisions.
Typically, it’s filled by the CFO, a senior account executive, or a department head who champions the project and final implementation plan.
Functional Experts
Functional experts bring deep knowledge of specific areas, ensuring the RFP covers all necessary technical and operational details. Overall, they help define requirements and assess vendor capabilities. This group often includes IT specialists, finance managers, or compliance officers.
Procurement or RFP Writers
Procurement or RFP writers bring expertise in crafting clear and effective RFP documents. They help make sure that the language is precise and that the structure facilitates vendor responses. This role might be filled by a procurement officer or a dedicated RFP writer.
End Users and Stakeholders
End users and stakeholders provide practical insights into daily needs and challenges, ensuring the RFP addresses real-world use cases. They help define user requirements—such as notifications, audit trails, or dashboards—and evaluate vendor proposals.
This group may include accounts payable clerks, department managers, or anyone else who will interact with the software on a regular basis.
Define Must-Haves & Goals
Before sending an RFP, your team needs to clearly define what the new solution must do, and why. Do you need better access to financial data, stronger forecasting capabilities, or streamlined invoice approval?
Aligning around pain points, goals, and non-negotiables helps vendors respond more accurately and makes it easier to evaluate proposals. These are some examples of questions you should ask yourself and your team in advance:
- Pain points with the current system: What frustrations do you and your team face daily? Identify issues like slow payment processing times or lack of integration that the new software must optimize.
- Required improvements and success outcomes: What does success look like? Maybe it's reducing invoice processing time by 50% or improving accuracy. Set clear outcomes to guide vendors.
- Functional, technical, and compliance needs: Does the software need to integrate with your ERP, or meet specific regulatory standards? Is it user-friendly or hard to learn? Define these needs to ensure compatibility and compliance.
- User roles, usage levels, workflows: How do different team members use the system? Outline roles and workflows to ensure the software supports your team's structure and processes.
- Deployment preferences: Do you prefer cloud-based automation solutions or on-premises installations? Consider your IT infrastructure and future scalability when deciding on deployment options.
Write the Accounts Payable Software RFP
Now it’s time to put everything together in a clear, structured RFP document. A well-organized RFP helps vendors respond accurately and makes it easier for your team to evaluate those responses. Here’s what to include to help make your decision-making process easier:
1. Executive Summary
The executive summary should provide a snapshot of your RFP. Clearly state your goals and what you hope to achieve with the new software. Always keep it concise but informative. This sets the stage for vendors, helping them understand your priorities right from the start.
2. Scope of Work
Outline the scope of work by detailing the tasks and services you expect from the vendor, making sure to include specifics about the project timeline and key deliverables. This helps vendors know what’s expected and ensures they can meet your needs.
3. Technical Requirements
List the technical requirements that the software must meet. Think about its compatibility with existing systems and necessary features, such as general ledger management or better data entry. This ensures vendors propose solutions that fit your tech landscape and avoid compatibility issues.
4. Vendor Qualifications
Specify the qualifications and experience you’re looking for in a vendor. Include criteria like past projects, financial stability, and industry expertise, so when it comes time to evaluate, it’s easier to shortlist vendors who have a proven track record and can deliver results.
5. Security and Compliance Needs
Detail your security and compliance requirements to ensure data protection and regulatory adherence. Consider standards like GDPR or industry-specific regulations, so you can be sure that your responses include solutions that keep your data (and client data) safe and compliant.
6. Implementation and Training Expectations
Clarify your expectations for implementation and training support. Specify timelines, resources required, and any training programs needed. This helps vendors plan for a smooth transition and ensures your team gets the ongoing support they need.
7. Pricing and Licensing
Ask for detailed pricing and licensing options to understand the financial implications. Include any specific pricing models you prefer, like subscription or perpetual licensing. This helps compare costs and choose a solution within your budget.
8. Contract Terms
Outline the contract terms, including duration, renewal options, and termination clauses. This provides a framework for negotiation and ensures both parties understand their obligations. It’s vital for setting clear expectations and avoiding disputes.
9. Submission Instructions
Provide clear instructions for how vendors should submit their proposals. Include deadlines, formats, and any specific documents required. This ensures you receive complete responses and makes it easier to evaluate submissions efficiently.
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Define Your Evaluation Criteria
Clearly defined evaluation criteria help keep the decision process objective, transparent, and aligned with business goals. Establishing criteria before reviewing proposals ensures that your team avoids bias and makes decisions based on what's truly important.
Here’s how to define your evaluation criteria:
What Matters Most?
Choose 3–5 weighted categories that align with your goals and priorities. These categories help you narrow down which aspects are most important and make your evaluations consistent.
Common RFP scoring categories for accounts payable automation software include:
- Cost
- Functionality
- Additional modules
- Vendor experience
- Integration capabilities
- Support and training
Use a Scoring Matrix
A scoring matrix helps quantify each proposal's alignment with your criteria. For example, if budget constraints are tight, you might assign a higher weight to cost, or emphasize functionality if specific features are vital.
Consider scoring each criterion on a 1–5 or 1–10 scale, and adjust the weightings to reflect your internal priorities.
Clarify Your Scoring Process
Define who will score the proposals and how they’ll do it. For this step, it’s best to use a standardized rubric to ensure consistency and fairness.
It’s also worth scheduling a meeting to align your reviewers before scoring begins. This ensures everyone understands the criteria and the process, reducing discrepancies and making the evaluation smooth.
Issue the Accounts Payable Software RFP
Issuing the RFP isn’t just about sending it out—it’s about giving vendors the right access, timelines, and instructions so they can respond effectively. A smooth distribution process sets the tone for the quality of proposals you’ll get back. Here’s how to manage it:
Choose the Right Distribution Method
Consider options like email, RFP software platforms, or procurement portals for distributing your RFP. Using a centralized system helps track responses and maintain organization. You might also want to include a vendor contact list or use a role-based inbox for clarity. This ensures all communications are streamlined and easy to manage.
Set Clear Timeline Expectations
Share a standard RFP timeline within the document to keep vendors on track. A typical timeline might include:
- RFP release date
- Vendor Q&A window
- Final submission due date
- Evaluation and selection period
Providing these details upfront helps vendors plan their responses and align with your schedule.
Define Submission Requirements
Clearly state what vendors need to know to submit correctly. Include accepted file formats like PDF, Word, or Excel templates, and specify the preferred delivery method, such as an upload portal or reply-to inbox.
You should also indicate whether vendors must use specific templates or forms, and clarify if late submissions will be accepted. This reduces confusion and ensures you receive complete, organized proposals.
Evaluate & Shortlist Vendor Responses
This is where structure pays off. Consistency, objectivity, and collaboration are key across everyone involved in the evaluation. Here’s how to effectively evaluate and shortlist vendors:
- Organizing and formatting proposals for review: Make sure all proposals are easy to review by standardizing their format. Use a template to organize key sections like pricing and features, so your team can quickly compare vendors side by side.
- Using a scoring matrix: Apply your predefined scoring matrix to evaluate each proposal, rating them on criteria like cost, functionality, and support. This ensures a fair comparison and highlights the top contenders.
- Scheduling demos and interviews: Once you have your top choices, invite them for a demo or interview. This way, you can see how their software handles your specific needs in real-time. It also allows you the opportunity to ask detailed questions.
- Checking references: Reach out to other companies who’ve used the software. What do they say about the vendor’s reliability and support?
- Clarifying anything unclear in proposals: If something’s unclear, don’t hesitate to ask the vendor for clarification. It’s important to know how they can meet your current needs before making a decision.
Select & Notify Vendors
Once your team has chosen a vendor, the final steps are just as important as the evaluation process. Clear, professional communication with all vendors—both selected and unselected—is critical, and internal alignment is essential before moving into contract execution. Here’s how to manage this stage:
Notify Selected and Unselected Vendors
Timely, respectful communication with vendors sets a positive tone for future interactions. Send a short thank-you or high-level feedback to all vendors, particularly those not selected. This can strengthen relationships and ensure vendors are inclined to participate in future opportunities.
Prepare for Final Negotiations
Before finalizing the contract, negotiate key items like pricing, SLAs, and contract terms. Define your team’s walk-away points in advance to avoid surprises. Then, use a checklist or agenda to stay focused during discussions, ensuring all important points are covered efficiently.
Ensure Internal Alignment Before Signing
Before signing, secure necessary approvals from leadership or finance, and conduct a legal or procurement review. Summarize key decision drivers to help internal reviewers move quickly. This ensures everyone is on the same page and the contract aligns with your organization’s goals.
What’s Next:
If you're in the process of researching accounts payable software, connect with a SoftwareSelect advisor for free recommendations.
You fill out a form and have a quick chat where they get into the specifics of your needs. Then you'll get a shortlist of software to review. They'll even support you through the entire buying process, including price negotiations.