This is a guest blog post attributed to Jin Lee, Digital Strategy Specialist at W.L.P Group.
Singapore continues to lead the way globally in its aspirations to become a digital-first smart city, thanks to government initiatives that extend far and wide. One of the key pillars of this initiative to transform Singapore through technology focuses on helping local businesses use digital technologies to improve operations and build stronger capabilities to grow faster and more efficiently in the digital economy.
In spite of this, many Singaporean small businesses have yet to embrace the many advantages that digitalisation provides.
Embracing the power of digitalisation
The PSG is one of the great government initiatives introduced to help Singaporean SMEs thrive.
Digitalisation is the key differentiator and advantage for businesses to improve accuracy, efficiency, productivity and visibility to plan their resources and make more informed decisions impacting the future of their business. For example, SMEs looking for ways to improve their accounting processes can adopt cloud-based accounting tools, like Xero, for real-time visibility into their financial data. Bolstered with business and performance insights, SME owners are able to identify trends and establish benchmarks as well as plan for business growth.
In a volatile environment, like the one business owners are finding themselves in around the world, it is key to tap into resources available to them. The Productivity Solutions Grant (PSG) is a great example, which provides up to 70% funding support to SMEs to adopt digital solutions, such as Xero. For those in the Food and Beverage and Retail industries, this extends up to 80%. The grant can also be used to implement IT solutions, equipment and consultancy services that improve productivity.
The PSG extends to all businesses that are registered and operating in Singapore, with a minimum of 30% local shareholding and have an annual revenue under SGD100m or have less than 200 employees.
Apply for the PSG to adopt Xero
- Xero is a pre-scoped solution under the PSG, and must be applied through a pre-approved Xero vendor or accounting partner.
- The accounting partner will check eligibility and guide you through the application process.
- Get a quotation for Xero from your accounting partner. Note that you should not sign any contracts or proceed with payment prior to submitting the application.
- Submit your PSG application via the Business Grants Portal (BGP) to Enterprise SG. You will need to have your CorpPass login details on hand. Some key documentation you will need to provide will include a PDF file of your proposal, your vendor’s full company name, all the office addresses where Xero will be used and a short write-up on how using Xero will change your business operations.
- Enterprise SG will respond within six weeks.
- Once you receive the ‘Letter of Offer’ informing you that your grant application has been approved by Enterprise SG, you can purchase Xero through the pre-approved accounting firm.
Alternatively, you can ask the pre-approved accounting firm to apply for the PSG to purchase Xero on your behalf. You will simply need to provide a letter of authorisation for the accounting firm as well as authorise their CorpPass to make the application on behalf of your company.
Singapore’s small business leaders already surpass the US and UK in tech adoption, with the nation boasting the highest proportion of tech adopters according to a recent study. It’s imperative for small business owners to continue to stay ahead, and the PSG is a great way for them to do just that.