How the PSG Grant Can Help Your Business Adopt Xero
- CR Consultancy
- Jul 13
- 3 min read
Are you still spending hours chasing receipts, manually entering transactions, or waiting until month-end to understand your business's financial position? Many SMEs in Singapore face these challenges due to outdated accounting processes and disconnected systems. These inefficiencies not only consume valuable time but can also lead to errors, missed opportunities, and difficulties in maintaining accurate financial records.
Cloud accounting solutions such as Xero offer a more efficient way to manage business finances, with features like automated bank feeds, real-time reporting, and online collaboration. The good news is that eligible SMEs may not need to bear the full cost of implementation. Through the Productivity Solutions Grant (PSG), businesses can receive funding support to adopt approved digital solutions, making the move to cloud accounting more accessible and cost-effective.
What is the Productivity Solutions Grant (PSG)?
The Productivity Solutions Grant (PSG) is a government initiative that supports Singapore SMEs in adopting pre-approved digital solutions and equipment to improve productivity.
Under PSG, businesses can receive:
Up to 50% funding support for approved solutions
Support for IT software, equipment, and consultancy services
Access to solutions across accounting, HR, CRM, and more
The objective is to help companies automate processes, improve efficiency, and stay competitive in a digital economy.
Why PSG Matters for SMEs in 2026
PSG remains one of the most widely used grants for SMEs in Singapore.
Recent developments show that:
Funding support continues at up to 50% of qualifying costs
The range of supported solutions has expanded, including digital and AI tools
For SMEs, this creates a clear opportunity to upgrade systems at a lower cost while improving operational efficiency.
Why Choose Xero Under PSG?
Xero is a cloud-based accounting software that is pre-approved under the Productivity Solutions Grant (PSG). This means eligible businesses can receive funding support when adopting Xero through approved vendors.
As a modern cloud solution, Xero allows businesses to manage their finances in real time, automate routine accounting tasks, and improve overall accuracy. When combined with PSG support, the cost of implementation becomes more manageable, making it easier for SMEs to transition from manual or legacy systems to a more efficient digital setup.
This combination of government support and reliable technology makes Xero a practical choice for businesses looking to improve productivity while keeping costs under control.
Key benefits of Xero include:
1. Real-time financial visibility Businesses can monitor cash flow, revenue, and expenses at any time.
2. Automated bookkeeping processes Bank feeds and automated reconciliation reduce manual work.
3. Compliance with Singapore requirements Xero supports GST tracking and financial reporting aligned with local regulations.
4. Collaboration between teams and advisors Multiple users can access financial data securely in real time.
5. Scalability for growing businesses The system can support SMEs as they expand operations.
How Much Can You Save with PSG?
When implementing Xero under PSG:
SMEs can receive up to 50% funding support
The total grant support is typically capped at S$30,000 per company per financial year
Eligible costs may include:
Xero subscription fees
System setup and configuration
Data migration
User training and support
It is important to note that PSG operates on a reimbursement basis. Companies must apply and receive approval before making any payment.
CR Consultancy: A PSG-Approved Xero Partner
CR Consultancy offers a PSG-approved solution integrating Xero for SMEs. Their CR x Xero Cloud Accounting package is designed to simplify both the implementation and the grant application process.
Services include:
Full Xero system setup
Data migration from existing systems
Customised templates and workflows
Training and user support
Assistance with PSG application and claims
The solution is pre-approved under PSG, allowing eligible SMEs to receive up to 50% funding support.
What To Do Next
To get started with PSG and Xero, follow this checklist:
Confirm your eligibility
Company registered and operating in Singapore
At least 30% local shareholding
Revenue not exceeding S$100 million or fewer than 200 employees
Select a PSG-approved solution such as CR x Xero Cloud Accounting
Request a quotation from the vendor
Submit your application via the Business Grants Portal
Wait for approval before making payment
The Productivity Solutions Grant provides a practical way for SMEs to modernise their operations without taking on the full financial burden. By adopting Xero under PSG, businesses can streamline accounting processes, improve accuracy, and gain real-time financial visibility.
Working with a PSG-approved vendor such as CR Consultancy can also make the transition smoother, helping you set up the system effectively and maximise the benefits of the grant. If your business is considering a move towards cloud accounting, this is a good opportunity to explore the available support and plan your next steps.
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