In our recent webinar, Peakflo’s CEO Saurabh Chauhan and CTO Dmitry Vedenyapin unpacked a pressing question for SME leaders:
Are Singapore finance teams ready for AI — or are they still stuck in manual mode?
The short answer? Many teams are still heavily manual, but the shift to AI is accelerating faster than ever.
The Current Reality: Manual, Reactive, and Resource-Draining
According to insights shared during the session, 9 in 10 finance leaders in Singapore still spend significant time on manual back-office tasks.
That translates into:
- More man-hours spent on low-value repetitive work
- Higher risk of human errors and compliance gaps
- Increased operating cost per invoice
- Delayed vendor payments and strained relationships
- Slower month-end closing
- Limited real-time reporting visibility
Research from Singapore Business Review shows employees lose over five hours per week due to manual inefficiencies.
Where is the time lost?
Finance teams are commonly bogged down by:
1. Invoice Capture
Manual data entry from PDFs, scanned documents, and emails.
2. PO & Non-PO Matching
Line-by-line checking against purchase orders and goods receipt notes.
3. Bank Reconciliation
Manual matching of bank statements with accounting records.
4. Accounts Receivable Follow-Ups
Email reminders, WhatsApp messages, and phone calls are tracked in spreadsheets.
5. Spreadsheet-Based Reporting
Multiple versions of data, no synchronization, delayed decision-making.
The result? Scaling becomes expensive. As revenue grows, finance costs grow linearly — because processes are not automated.
How AI Is Changing the Finance Landscape in Singapore (2026)
In 2026, AI is no longer experimental. Adoption among SMEs has tripled in recent years — moving from about 5% to 15%, and continuing upward. AI is shifting from being a “personal productivity tool” to becoming a core finance infrastructure layer.
This shift is strongly supported by Singapore’s national push for AI adoption.
Singapore’s Deputy Prime Minister Gan Kim Yong recently highlighted AI productivity gains at the Google AI Accelerator, reinforcing that AI is not just for large enterprises.
Additionally, the Infocomm Media Development Authority (IMDA) has positioned AI as a key move under Singapore’s economic strategy to:
- Raise productivity
- Improve ROI
- Strengthen competitiveness
- Help SMEs scale sustainably
The biggest shift? Businesses now see AI as government-backed infrastructure, not optional technology.
How SMEs Should Approach AI Adoption
The biggest mistake? Starting with “AI transformation” without a clear objective.
Instead:
Step 1: Identify One High-Impact Workflow
Choose something repetitive and high-volume.
Step 2: Define the Metric
Are you reducing DSO? Man-hours? Cost per invoice?
Step 3: Pilot and Measure
Avoid overhauls. Start small and scale.
Step 4: Avoid “AI for AI’s Sake”
Technology without measurable ROI leads to failed implementations.
Instead of starting with “AI for everything,” the smarter approach is metric-driven adoption.
Start with measurable finance KPIs:
- Cost per invoice processing
- Month-end closing time
- Error rates in accounting entries
- Days Sales Outstanding (DSO)
- Man-hours spent on repetitive tasks
Where Can SMEs See Immediate ROI with AI?
High-volume, repetitive workflows deliver the fastest ROI. Here’s where SMEs are seeing immediate impact:
1. Accounts Payable Automation
Pain points:
- Manual invoice entry
- GL coding
- PO matching
- Approval delays
AI impact:
- 4x faster invoice processing
- Automated GL coding based on historical ERP data
- Reduced disputes
- Faster month-end close
One Singapore-based food manufacturer reduced bill-to-pay time by 40% and saved 60+ man-hours monthly through AP automation.
2. Accounts Receivable & Collections
Pain points:
- Manual payment reminders
- Poor visibility into outstanding invoices
- Cash flow delays
AI impact:
- Automated reminder workflows (email, WhatsApp)
- Customer portal payment links
- Auto-reconciliation
- Reduced DSO by 10–15 days
Fast-growing regional players like Ninja Van have demonstrated how automation drastically improves collection cycles while saving thousands of operational hours.
3. Reconciliation & Closing
End-of-quarter reconciliations are traditionally spreadsheet-heavy and time-consuming.
AI now enables:
- Automated bank statement matching
- General ledger reconciliation
- Faster financial closing (days instead of weeks)
For finance teams, this is where AI truly shines.
Cost, Risk & PSG: Why 2026 Is the Right Time
The real risk in 2026 isn’t adopting AI. It’s delaying it while competitors scale faster.
Common Myths About AI in Finance
| Myth | Reality |
|---|---|
| AI takes months to implement | Most SMEs go live in 2–4 weeks |
| AI disrupts operations | Pre-built workflows minimize risk |
| AI is too expensive | PSG offsets up to 50% of cost |
| AI is only for large enterprises | Finance automation is one of the fastest ROI areas for SMEs |
How IMDA Pre-Approved Solutions & PSG Support Accelerate Adoption
One of the strongest enablers of AI adoption in Singapore is government support.
The Infocomm Media Development Authority (IMDA) offers the Productivity Solutions Grant (PSG) support of up to 50% for eligible SMEs.
Why this matters:
- Lower upfront investment
- Reduced financial risk
- Faster ROI
- Government-vetted vendors
- Compliance assurance
Peakflo’s AI Accounting Automation is an IMDA pre-approved solution, making it eligible for up to 50% support under the Productivity Solutions Grant (PSG). This means Singapore SMEs can adopt AI-powered finance automation with significantly reduced upfront costs while working with a government-vetted solution designed to deliver measurable ROI.
Final Takeaways
Singapore finance teams are still heavily reliant on manual processes, but change is accelerating rapidly. AI adoption among SMEs has tripled in recent years, signaling a clear shift from experimentation to real implementation.
Functions like accounts payable, accounts receivable, and reconciliation are delivering the fastest and most measurable ROI, making finance one of the strongest starting points for automation. With government-backed support from the Infocomm Media Development Authority (IMDA) and support through the Productivity Solutions Grant (PSG), the barriers to adoption are significantly lower than before.
As we move through 2026, this presents a strategic window for SMEs to act. The key is to start small, measure outcomes clearly, and scale with confidence. If there is one theme that emerged from the webinar, it is this: AI is no longer a future investment. For Singapore SMEs, it has become a competitive necessity.
