Budget season always comes with tough choices. Do you set aside funds for operations, hire new staff, or finally invest in digital tools? For many SMEs, the cost of upgrading to InvoiceNow-ready systems or a full ERP feels like a heavy lift. But digitalisation doesn’t have to drain your cashflow. With the right grants, you can stretch every dollar and turn what looks like a cost into an opportunity. The key is knowing what support is available—and how to use it strategically for long-term growth.
Why Digitalisation Feels Expensive (But Doesn’t Have to Be)
For many SMEs, digitalisation often gets postponed because of the price tag. Licences, migration, and training costs can look intimidating when you’re working with tight budgets.
But here’s the bigger risk: doing nothing. Processes remain slow, errors keep piling up, and by the time compliance deadlines come around, companies end up rushing into poorly planned implementations. That’s often a recipe for system errors, wasted spending, and frustrated staff.
InvoiceNow: The Phased Rollout
ThSince May 2025, businesses have been able to join the InvoiceNow network voluntarily.
From November 2025, newly incorporated GST registrants opting for GST voluntarily have been required to adopt InvoiceNow from the start. And from April 2026, the rule extends to all new voluntary GST registrants, regardless of when they incorporated.
For companies already GST-registered before these dates, there’s no fixed deadline yet. But that doesn’t mean you should wait. The longer you delay, the higher the chance of rushing into a poorly planned implementation when the eventual mandate is announced.
Grants: A Multiplier for Your Budget
This is where grants come in. They’re not handouts—they’re designed to make digitalisation financially viable for SMEs.
- Productivity Solutions Grant (PSG): Covers approved digital solutions, including InvoiceNow-ready accounting software and ERP modules. Subsidies typically range from 50–70% of qualifying costs.
- Enterprise Development Grant (EDG): Helps fund larger transformation projects, such as ERP integration or workflow redesign. Generally supports up to 50%, with higher coverage for certain strategic areas.
- InvoiceNow Transaction Bonus (ITB): A small but meaningful incentive—businesses receive $200 in total once they send their first 10 e-invoices via InvoiceNow within 12 months.
Do note: eligibility depends on your business type, project scope, and how you qualify under each scheme.
Making Grants Work for You
How you use these grants makes all the difference.
Some SMEs apply for grants to cover quick fixes, such as free InvoiceNow apps. While that checks the compliance box, it does little to improve productivity or prepare for future growth.
A smarter way to stretch your dollar is to use the same grant support to offset ERP costs. With ERP, you’re not just compliant—you’re also streamlining finance, procurement, HR, and operations under one system. It’s an investment that scales with your business.
Think of it this way:
| Grant Use | Outcome |
|---|---|
| Free App |
✔ Compliance today ✘ Limitations tomorrow |
| ERP |
✔ Compliance today ✔ Efficiency & scalability tomorrow |
Budgeting Tips for SMEs
When planning your 2026 budget, treat grants as multipliers, not bonuses.
For example, if an ERP project costs $50,000, a 70% PSG subsidy could reduce your out-of-pocket expense to just $15,000. That’s $35,000 you’ve effectively stretched—funds you can redirect into staff training, customer engagement, or business expansion.
The earlier you factor grants into your budgeting, the better you can allocate resources and avoid last-minute pressure.
Conclusion
Grants are more than financial relief—they’re tools to help SMEs make smarter choices with limited budgets. By planning early and using support where it matters most, you can build systems that don’t just meet compliance, but also strengthen your business for the long run.
Talk to SmartBiz today—let’s explore how you can make the most of available grants and stretch your budget further.
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