What is the PSG Grant and how can you use it in accounting?

The Productivity Solutions Grant (PSG) is a government initiative in Singapore. The PSG is aimed at helping businesses adopt digital solutions and technologies to enhance their productivity and competitiveness. Launched by Enterprise Singapore, the PSG Grant provides financial support to eligible businesses looking to implement pre-approved digital solutions across various sectors.

You can use the PSG Grant for digital solutions such as accounting software and eCommerce website design. For example, say that you are doing bookkeeping by hand and want to transition to an accounting software like Xero or Quickbooks. You can use the PSG as an accounting software grant in Singapore to get up to a 50% subsidy. This will cover 50% of the total cost of implementing and transitioning over to an accounting software. This is subject to approval by the government and given that you are a business registered in Singapore that meets the eligibility criteria.

Eligibility Criteria

To qualify for the PSG Grant, businesses must meet certain eligibility criteria. These criteria typically include being registered and operating in Singapore and having a minimum number of local employees. Eligibility may also include showing a genuine need and intention to adopt digital solutions to improve productivity. It is important for businesses to carefully review the specific eligibility requirements for each PSG-approved solution they intend to apply for.

The goal of the PSG Grant is to help small and medium sized enterprises, and to streamline the Singaporean economy. Thus a lot of the eligibility will require entrepreneurs and businesses to be based in Singapore and be of a certain sized company.

PSG-Approved Solutions

The PSG Grant covers a wide range of digital solutions across different business functions. These solutions are pre-approved by the government to ensure their suitability and effectiveness. Some examples of PSG-approved solutions include customer relationship management (CRM) systems, accounting software, inventory management systems, point-of-sale systems, human resource management systems, and more. The list of approved solutions is regularly updated to cater to evolving business needs and technological advancements.

Application Process

Applying for the PSG Grant involves a straightforward process. Businesses can visit the Business Grants Portal (BGP) to search for and select the desired PSG-approved solution. They need to provide information about their company, such as business activities, financial statements, and projected outcomes. Once the application is submitted, it will be reviewed. Upon approval, the business can proceed with the implementation of the chosen digital solution. It is essential to keep track of the application status through the BGP and provide any additional information or clarifications if requested.

Funding Support of the PSG Grant

The PSG Grant provides funding support to businesses by co-funding up to 80% of the qualifying costs. The grant cap varies depending on the category of solutions. For example, the grant cap for off-the-shelf solutions is $30,000, while sector-specific solutions have their own grant caps. The remaining cost is to be borne by the business. It is important to note that PSG funding is awarded on a reimbursement basis, meaning the business needs to pay for the solution upfront and then claim the approved amount later.

The Productivity Solutions Grant (PSG) is a valuable initiative for businesses in Singapore. I offers financial support to adopt digital solutions and enhance productivity. By leveraging the PSG Grant, businesses can embrace technology, streamline their operations, and stay competitive in today’s digital age. It is advisable for businesses to explore the available PSG-approved solutions and start the application process to unlock the benefits of this government grant.