In 2025, Singapore businesses are navigating a climate where uncertainty is the only constant. Cashflow bottlenecks have become a familiar concern, and many companies are bracing for the possibility of late payments or even defaults. According to Coface’s 2025 Asia Payments Survey, 57% of firms have expected worsening payment behaviour this year. It’s a sobering statistic that reflects not only global geopolitical tensions but also fragile business confidence at home.
But beyond external headwinds, there’s another payment risk that many businesses still underestimate: the hidden costs of running finance on manual tools.
It may not make headlines, but outdated accounting systems and spreadsheet-heavy workflows expose companies to inefficiencies and vulnerabilities that add up to significant financial and human tolls.
Too often, finance staff spend long evenings cross-checking invoices or chasing missing receipts across inboxes. Reimbursements are delayed, suppliers are frustrated, and teams are left drained by repetitive, time-consuming tasks that add little strategic value. The impact goes far beyond wasted time. It erodes morale, creates compliance blind spots, and weakens the ability of businesses to respond quickly to shifting conditions.
The hidden cost of manual accounts
Summit’s recent survey of Singapore finance leaders, most from mid-market and enterprise firms, revealed a telling picture; only half are currently using a dedicated Accounts Payable (AP) or expense tool. The rest continue to rely on inboxes and spreadsheets to track invoices…even in 2025.
On the surface, these methods may appear manageable. But in practice, they create delays, errors, and blind spots in cashflow visibility. It’s not uncommon for duplicate payments to slip through or for supplier relationships to be strained by late settlements. Over time, these inefficiencies compound into real financial risks that no company can afford in today’s climate.
Why outdated tools no longer suffice
Manual processes may have served their purpose when business environments were simpler. Today, they are simply too slow and error-prone. Compliance is harder to enforce when approvals are inconsistent and records are scattered across files and inboxes. Reconciling accounts late or inaccurately doesn’t just cause stress, it can even result in penalties and undermine board confidence.
In fact, poor documentation emerged as the top concern among leaders in our survey. As they pointed out, fragmented records increase compliance exposure and cause late reporting, which can be damaging not only internally but also in the eyes of regulators and investors. SMEs, already stretched thin with limited manpower, feel this burden most acutely.
A shift in mindset among finance leaders
We are seeing finance leaders move from a reactive stance to a more preventive one. Rather than waiting for defaults or late payments to accumulate, many are investing in automation to gain greater control and visibility.
Our survey shows 65% of companies plan to adopt automation within the next year. The majority are prepared to allocate a starting budget of up to S$500 monthly, signalling a shift in how financial infrastructure is perceived. It is no longer a discretionary line item but a foundational investment in resilience.
Automation as a survival strategy
The role of automation has evolved. Once seen as a productivity booster, it is now a survival strategy.
Interestingly, while the top daily frustration cited was the scramble for urgent payments, when asked about automation priorities, leaders highlighted more strategic areas like budgeting, forecasting, and internal controls.
This gap highlights how finance teams are often stuck firefighting. Automation bridges that gap by reducing manual workloads, preventing duplication, and providing full audit trails. The outcome is simple, less time spent on operational processes, and more on forecasting and strategic planning.
The finance function is undergoing a quiet transformation. No longer confined to bookkeeping, finance teams are becoming strategic partners in spend management, compliance, and risk forecasting. SMEs, which once delayed upgrades over cost concerns, are now recognising that clinging to outdated tools presents greater risks than the cost of modernisation.
This shift reflects a broader change in mindset. Resilience and efficiency now matter as much as growth. Companies that make early moves to modernise their finance operations will not only withstand volatility but also position themselves to seize opportunities with greater confidence.
At Summit, we’ve seen this shift building for years. And with our team’s decades-long experience, it’s evident that automation isn’t about chasing the latest hype cycle. It’s about giving businesses the visibility, control, and assurance they need to adapt in uncertain times.
Finance teams will increasingly use automation and AI not only to enforce compliance but also to anticipate risks and guide decision-making. Real-time spend insights, predictive cashflow forecasting, and embedded policy checks will soon be standard practice like they are with the clients who use our tools with these features.
For SMEs particularly, these capabilities will not be optional but essential to compete, attract investment, and build long-term resilience to survive in Singapore’s cutthroat business field.
