Xero for Singapore Small Businesses: Is It Worth It?

Most Singapore founders choose their accounting software based on recommendations from their fellow entrepreneurs or by Googling "best accounting software Singapore". At Harvest, we exclusively use Xero. Here is why we choose Xero as the only accounting software we use and recommend to our clients: what Xero does well, what it costs in Singapore, how it handles local compliance, and what you actually gain by working with a certified Xero Platinum Partner.

First, let's go back to 2011.

Our founder Matthew started his career as a graduate accountant in Wellington, New Zealand, a few minutes' walk from where Xero was founded.

Back then, he used desktop software like MYOB. The workflow was clunky in a way that now feels almost comical to describe. The client had their version of the file. He had his. At some point, someone had to download a copy, send it across so he could work on it, then send it back, and hope nothing had been entered in the meantime that would cause a version conflict. It put a wall between accountants and their clients.

When Xero arrived, he knew immediately it was going to change everything. Not only because it was more user-friendly, but because we could see exactly what the client was seeing. They invoice a customer from their own office. We reconcile their books from ours. Same data, no syncing. No version conflicts. No emailing files back and forth.

Fast forward to 2017, and Matthew noticed Xero making a huge push into Singapore. He saw an opportunity to start an accounting firm built entirely in the cloud. Harvest was born the next year in 2018.

The cloud did not just improve the old workflow. It made the old workflow obsolete. That was the original concept of Xero. However, so much has changed since those early days. Xero has evolved from a simple online accounting tool into a comprehensive business platform. It is now a central hub for business operations, connecting with hundreds of other apps and services to create a seamless workflow for small businesses.

What is Xero?

Xero is a cloud-based accounting platform used by over 4.6 million businesses globally. For Singapore small businesses, it connects invoicing, bank feeds, GST, expenses, and financial reports in one place, updated in real time, accessible from any device.

Unlike desktop software, it is not tied to one machine or one location. You can check your cash flow from your phone on the way to a client meeting. Your accountant can see exactly what you see, without requesting files or waiting for month-end. Everything is live.

For Singapore-registered businesses, the platform is built around local compliance: GST filing with IRAS, bank connections to DBS, OCBC, and UOB, InvoiceNow e-invoicing, and financial statements structured for ACRA filing.

Xero’s Singapore-Specific Compliance Features

GST Filing and IRAS Integration

Xero automatically tracks GST on every transaction at Singapore’s current rate of 9% (effective January 2024) and generates your GST F5 return, ready for submission to IRAS.

For businesses filing quarterly, this alone removes hours of manual work: no more compiling transaction data from spreadsheets, no more transcribing figures into a separate portal.

Key GST capabilities in Xero:

• Automatic GST categorisation on purchases and sales
• One-click GST F5 submission to IRAS
• Integrated Audit File (IAF) generation for businesses required to produce one
• Correct handling of foreign currency transactions and mixed-rate periods

InvoiceNow E-Invoicing (Peppol Network)

Singapore’s Infocomm Media Development Authority (IMDA) has mandated e-invoicing through the InvoiceNow network. Xero supports this natively.

The current compliance timeline:

1. From 1 November 2025: newly incorporated companies that voluntarily register for GST must comply
2. From 1 April 2026: all new voluntary GST registrants face the same requirement

Xero users can register for InvoiceNow directly within the platform. Once connected, invoice data submits automatically through the Peppol network as transactions are created.

Bank Feeds from Singapore Banks

Xero connects directly to DBS, OCBC, and UOB, pulling in daily transactions automatically. Reconciliation that used to take an afternoon is reduced to minutes. Transactions import, Xero suggests matches, and you confirm.

CPF and Payroll Integration

Xero integrates with CPF-compliant payroll providers including Talenox, Employment Hero, and Payboy. CPF contributions, Skills Development Levy (SDL), and Ministry of Manpower submissions are handled through these integrations, with payroll data flowing back into Xero for accurate general ledger entries, in line with your CPF Board employer obligations.

Xero Pricing in Singapore (2025)

Plan	Monthly price (SGD)	Best for
Starter	$39/month	Sole traders and businesses getting started
Standard	$70/month	Growing SMEs needing unlimited invoices and bills
Premium	$95/month	Businesses that need advanced analytics and 30-day cash flow forecasting

Every plan includes unlimited users. That matters: competitors like QuickBooks Online charge more as your team grows, so Xero is often the cheaper option once you factor in staff, managers, and advisors all needing access.

Optional add-ons:

• Xero Projects (job tracking and costing): SGD $10/month
• Xero Analytics Plus (advanced forecasting and dashboards): SGD $10/month
• Payroll integrations: varies by provider

PSG Grant: Singapore businesses setting up Xero through a PSG-approved vendor may be eligible for the Productivity Solutions Grant, which covers 50% of qualifying setup costs. Harvest Accounting is a PSG-approved vendor.

Xero vs. Competitors: Singapore SME Comparison

	Xero	QuickBooks Online	Zoho Books	FreshBooks
Starting price (SGD/month)	$39	$24.61	Free tier available	~$20
Unlimited users	Yes	No	No	No
GST F5 filing (Singapore)	Yes	Limited	Basic	No
DBS/OCBC/UOB bank feeds	Yes (all three)	DBS only	Limited	No
InvoiceNow (Peppol) support	Yes	No	No	No
Local accounting firm ecosystem	Strong	Moderate	Limited	Limited
AI assistant	JAX (2025)	No	No	No

Xero is the strongest all-round choice for Singapore SMEs. No competitor matches it on all three fronts: Singapore compliance depth, unlimited users, and a local accounting partner ecosystem that is genuinely built around the platform.

Zoho Books suits micro-businesses on tight budgets. The free tier is genuinely useful for very simple operations, though its Singapore-specific compliance integration is less developed.

QuickBooks Online has a strong presence in the US but limited local support in Singapore. Bank feeds only work reliably with DBS. OCBC connections suffer persistent technical errors, and UOB Infinity (UOB’s current platform since 2020) is not supported at all. It suits businesses with US operations that need tight Intuit ecosystem integration, but for Singapore-first operations the bank feed gap is a real daily friction point.

FreshBooks suits pure service businesses (freelancers, consultants) prioritising time tracking and project invoicing over full accounting depth.

Can You Run Xero Yourself?

Yes. Plenty of founders use Xero independently for basic invoicing, expense tracking, and reconciliation. You do not need an accounting degree to find your way around it, and in many cases that is enough.

But using Xero and getting Xero to work properly are not the same thing.

What most business owners can handle on their own:

1. Sending invoices and tracking payments
2. Chasing overdue invoices using Xero’s built-in payment reminders
3. Viewing basic cash flow and profit and loss
4. Connecting your bank account

Where it gets complicated:

1. Setting up your chart of accounts correctly (wrong structure produces reports that look right but are misleading)
2. Correct GST categorisation across different transaction types (errors here create risk at IRAS audit)
3. Year-end tax filings and ACRA compliance
4. Configuring Xero for your specific industry and business model
5. Connecting and configuring the right integrations from Xero’s 800+ app ecosystem

We see this regularly. A founder has been running Xero confidently for a year. We audit the setup and find GST miscategorised across half their transactions, or a chart of accounts structured in a way that makes their P&L technically accurate but practically unreadable.

The software worked. The configuration did not.

The Xero Platinum Partner Difference

Xero’s partner programme runs from Partner through Bronze, Silver, Gold, and Platinum. Platinum is the highest tier: awarded to firms with the deepest certified expertise, the highest client adoption, and a proven track record of results.

Platinum Partners have exclusive access to:

• Xero Practice Manager for advanced client workflow management
• Syft Analytics for deep financial performance reporting and benchmarking
• Priority support directly from Xero
• Specialist advisory tools not available to lower-tier partners

Working with a Platinum Partner is not just about having someone who knows the software. It means your accountant’s entire practice is built around Xero at the highest level. They have configured Xero for hundreds of businesses. They know the GST edge cases. They know which apps connect cleanly and which create problems. They proactively manage your setup rather than reacting to it.

When Singapore raised the GST rate from 8% to 9% in January 2024, businesses with Platinum Partners had their systems updated and tested before the change took effect. Businesses managing Xero on their own often discovered the issue when they issued invoices at the wrong rate and had to correct them.

That proactive approach is the practical difference.

Syft Analytics: Beyond the Basic Reports

Xero’s built-in reports give you accurate numbers. Syft shows you what those numbers mean.

Syft Analytics was the most-used reporting and insights app in the Xero App Store before Xero acquired it in late 2024, embedding it directly into the platform. It is accessible through Xero Silver, Gold, and Platinum Partners.

Where Xero’s standard reports show you a snapshot of what happened, Syft adds the analytical layer. Visual KPI dashboards. Rolling cash flow forecasts built from your actual transaction history. Profitability broken down by revenue stream. Industry benchmarking so you can see how your margins compare to sector medians.

The reports Syft generates are also the kind you bring to a bank meeting or an investor conversation: clean, formatted, and built to be walked through rather than just filed.

We use Syft as part of our monthly advisory process with clients. Instead of sending a PDF of last month’s P&L, we walk through a dashboard together, one that shows whether the business is moving in the right direction and flags what is actually worth a conversation.

Harvest Accounting: Singapore’s 2025 Xero Awards Double Winner

We are a Xero Platinum Partner and double winners at the 2025 Xero Asia Awards: Singapore Partner of the Year and Digital Innovator of the Year. Honestly, we were thrilled (and a little surprised) when we won both. They are the highest recognitions Xero awards in the country, and they reflect what we have built with our clients over the years.

For our clients, that means:

• Full compliance handled: GST, ECI, corporate tax, ACRA, CPF
• Monthly reports delivered within 10 working days of month-end
• A dedicated team per client: Client Manager, Bookkeeper, and Reviewer
• One consistent point of contact, long-term (not a different person every quarter)
• Fixed monthly pricing from SGD $300, no hourly billing, no surprises
• PSG grant support available: up to 50% off qualifying Xero setup costs

The month-end process we have built for clients takes about three minutes. We tell you exactly what we need. You upload it. Done.

“That one day of the month, it takes me literally like three minutes. I click done, done, done, and then I’m done. Nothing has ever been late.” — Charissa Guan, Founder, bSide Agency

“Things like filings, taxes and accounting, that’s definitely my valley, and they are a mountain there. So much man hours just saved.” — Jason Ho, Strengths School

“The reason we moved to Harvest is they stay on the edge of technology.” — Kristen Romain, Swish Swimming

That last point matters to us. Xero is only as powerful as the firm running it. Winning both the 2025 Partner of the Year and Digital Innovator of the Year awards is independent verification that we are at the top of that list in Singapore. And there is still so much more we want to build.

Frequently Asked Questions

Is Xero worth it for a Singapore small business?

Yes, for most registered Singapore companies. Xero automates GST tracking, connects to Singapore’s major banks, and generates IRAS-ready returns. For businesses with more than a handful of transactions per month, the time savings and compliance protection clearly outweigh the SGD 39 to 95 monthly cost.

What is the best accounting software for Singapore SMEs?

Xero is the most widely adopted cloud accounting platform among Singapore SMEs and their accounting firms. It is built for Singapore compliance (GST, IRAS, InvoiceNow, CPF), offers unlimited users on all plans, and has the strongest local partner ecosystem. For very small businesses on tight budgets, Zoho Books has a free tier worth exploring.

How much does Xero cost in Singapore?

Xero plans in Singapore start at SGD $39/month (Starter), $70/month (Standard), and $95/month (Premium). All plans include unlimited users. Businesses setting up through a PSG-approved vendor may qualify for the Productivity Solutions Grant, which covers 50% of qualifying setup costs.

What is a Xero Platinum Partner?

A Xero Platinum Partner is an accounting firm at the highest tier of Xero’s partner programme. Platinum status is awarded to firms with deep Xero expertise, a large certified client base, and a strong track record. Platinum Partners have access to advanced advisory tools and priority Xero support that lower-tier partners do not.

Do I need an accountant if I use Xero?

Xero handles the automation. You still need an accountant for correct GST categorisation, IRAS and ACRA compliance, tax planning, and meaningful financial reporting. Using Xero with a certified Platinum Partner typically delivers better outcomes, faster, than either the software or the accountant alone.

Does Xero support InvoiceNow e-invoicing in Singapore?

Yes. Xero supports InvoiceNow (Peppol) natively. Businesses can register for InvoiceNow directly within Xero and submit invoice data automatically through the Peppol network as invoices are created.

What is the InvoiceNow compliance deadline for Singapore businesses?

From 1 November 2025, newly incorporated companies that voluntarily register for GST must comply with InvoiceNow. From 1 April 2026, this requirement extends to all new voluntary GST registrants.

Can I get the PSG grant for Xero in Singapore?

Yes. The Productivity Solutions Grant covers up to 50% of qualifying Xero setup costs when you work with a PSG-approved vendor. Harvest Accounting is a PSG-approved vendor. See our PSG packages.

Xero Is Necessary. The Right Team Makes It Work.

For most Singapore small businesses, Xero is the right foundation. It handles compliance, automation, and financial reporting in a way that spreadsheets and paper-based accounting simply cannot.

But infrastructure is only part of the answer.

The founders who get the most out of Xero check their cash flow every morning and stop losing sleep over tax season. What they all have in common is the right team behind the software.

If you are a registered Singapore company still managing your books manually, or your current accountant is not on Xero, that gap is costing you time, headspace, and compliance risk.

We handle the full setup, ongoing compliance, and monthly reporting, so you can focus on running the business you actually started.

We look forward to helping you Harvest Together.

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