What is the EDG Grant (by Enterprise Singapore)?
The EDG Grant is a subsidy for small business owners in Singapore. EDG stands for “Enterprise Development Grant”.
As the name suggests, it’s for enterprise (or business-related) expenses. For example, a small business owner might look towards accounting software to streamline business operations but be deterred by the costs.
Thanks to the EDG Grant however, cost is no longer an issue. As long as your business expense helps your business to improve productivity, innovate or expand overseas, you can apply for the EDG Grant.
With our EDG Grant accounting services, we’ll help you apply with Enterprise Singapore.
You can also use the PSG Grant for accounting with a pre-approved vendor if you’re a small business owner that meets the requirements laid out by Enterprise SG.
Why Do I Need Accounting Software?
In 2022, accounting software is the only way to go about with managing your company’s finances.
The alternative would be to manually enter data into an Excel sheet. The problem with that would be a terrible UI and miscalculating your financial statements.
In short, an accounting software is a must for any business that has more than a few monthly transactions because company finances can get hard to track really quick.
More importantly, the Singaporean government requires businesses to submit annual returns. If you were to submit an incorrect financial statement or tax filing, you are at risk of paying a big fine.
Frequently Asked questions
What is the difference between accounting for small businesses and accounting for large businesses?
As one can guess, accounting for small businesses is generally a lot more easier. There are less transactions, less accounts in the chart of accounts and less company finances to manage.
Many large MNCs (Multinational Corporations) usually have in-house accounting teams to manage company finances. They do everything from journal entries to keep records of purchase orders to doing accounts receivable collections.
On the other hand, small businesses in Singapore usually outsource their accounting to accounting firms. Some small businesses have one in-house accountant but that’s incredibly rare. In addition, thats usually only the case in businesses that have a lot of accounts receivable collections.
Anyway, thanks to accounting software, it’s incredibly easy to work with accounting firms. All an accounting firm would have to do is to add the SME owner as a new user to share all company finance details. It takes minutes to set up!
Who is eligible for the EDG Grant & PSG Grant? Is the PSG Grant available to MNCs?
The EDG Grant and PSG Grant are only available to small local businesses. They must be incorporated in Singapore and can’t be a nonprofit. There is also a minimum local shareholding by a Singaporean. Simply put, you’re not eligible for either grant if you’re a MNC or foreign company.
>The purpose of the EDG Grant and PSG Grant is to help small businesses in Singapore to remain competitive in the large global market where MNCs have huge amounts of capital to invest in accounting and business development. If your small business doesn’t already use Xero or a small business accounting software, you can apply for the PSG Grant for accounting to get up to 80% off the cost to move to Xero.
Just curious what other expenses or business development strategies could I use the EDG Grant for?
You can use the EDG Grant for anything related to helping your business become more productive, innovative or expand to the global market. A few common examples are: eCommerce photography, eCommerce web development, accounting software and other enterprise softwares.
What is a key quality in an accountant in Singapore?
There are many accountants in Singapore. As a small business, most bookkeepers and accountants should be able to help manage your company finances without any issue. But there are a couple of things to look for in a good accountant.
Firstly, you should find an accountant or accounting firm with a good clientele. (The accounting firm must be pre-approved for PSG Grant for account. Otherwise, you can’t apply for the PSG Grant with them.) This doesn’t necessarily mean that they should have done accounting for McDonalds or some large MNC. But it is important to have experience with local Singaporean companies. More specifically, you should look for an accounting firm with experience with other small businesses in Singapore. This will give you confidence that your company finances will be in safe hands by someone who’s familiar with the small business corporate tax filing process in Singapore.
Second, you should look for an accountant or accounting firm familiar with the popular accounting softwares. This includes Xero, Adolet and Quickbooks. This is because your current company finances are probably on one of these small business accounting softwares and you don’t want to go through the hassle of moving everything over. But many accounting firms already offer Xero or Quickbooks accounting services so that shouldn’t be an issue.
Finally, a good accountant should be patient and communicative. Needless to say, finances are a big part of running your business. If you’re not profitable, you’re out of business. And the person most familiar with your company finances is your accountant! Your accountant should love answering all your accounting questions and always be happy to help with any query or issue that you have.