Healthy margins can disappear in payments friction and FX spreads. A simple cash-management design keeps funds visible, fees predictable, and FX under control—without hiring a full-time treasurer.
1. Map your money flows (30-minute workshop)
- Receivables: Which currencies? Which corridors? Card vs bank transfer?
- Payables: Payroll cadence, supplier geography, tax & rent.
- Buffers: Minimum operating cash (in days of expenses) by currency.
- Treasury rhythm: Weekly or bi-weekly review; set “convert when received” vs “convert weekly” rules.
2. Decide the right account stack
| Use Case | Best-Fit Account/Product | Why | Watch-outs |
|---|---|---|---|
| Mostly domestic SGD | Basic current + PayNow Biz | Fast collections & low fees | Fall-below fee if balances small |
| Mixed SGD + USD/EUR | Multi-currency account (named details) | Avoid double conversions; easier reconciliation | FX spread adds up; negotiate tiers |
| Many clients, small tickets | Virtual sub-accounts or unique references | Auto-map who paid what | Availability varies by bank |
| Marketplace payouts & cards | Corporate cards + expense tool | Control & visibility of spend | Card FX markup on foreign spend |
3. FX methods—choose what matches your predictability
| FX Method | When to Use | Cost Characteristics | Risk |
|---|---|---|---|
| Spot (convert on the day) | Irregular flows, small tickets | Simple, spread embedded | Rate uncertainty |
| Scheduled spot (weekly batch) | Regular flows, admin light | Lower ops effort; average rate | Some timing risk |
| Forward contract (1–6 months) | Predictable invoices/payroll | Locks rate; small fee/margin | Miss out if market moves your way |
| “Natural hedging” (hold currency) | Earn & spend in same currency | Minimal explicit cost | Currency exposure on balances |
Rule of thumb: If >50% of a month’s expenses are in one foreign currency, hold that currency and convert only what you need for SGD bills.
4. Receivables acceleration
- PayNow for Business: Add QR/UEN to invoices; auto-reconcile with invoice number as reference.
- USD/EUR collection: Prefer named IBAN/US routing to avoid payer friction.
- Card acquiring: If you sell online, compare gateway MDRs vs bank’s merchant packages; negotiate volume tiers.
5. Payables automation (cut errors and fees)
- Run twice-weekly payment batches (e.g., Tue/Fri) to consolidate FAST transfers.
- Use corporate cards for SaaS/ads; set monthly caps and auto-export transactions to accounting.
- Pre-approve vendors and set maker-checker in online banking to reduce fraud risk.
6. Visibility: build a one-page cash dashboard
Minimum you want to see every Monday morning:
- Bank balances by currency
- Receivables due this week vs next
- Payables scheduled this week
- FX to be converted (amounts & target rates)
- Exceptions (failed payments, unmatched receipts)
Simple layout (copy to spreadsheet):
| Widget | Data Source | Owner | Frequency |
|---|---|---|---|
| Balances (SGD/USD/EUR) | Bank portal export | Finance lead | Daily |
| AR aging (0–30/31–60/60+) | Accounting system | AR clerk | Twice weekly |
| AP upcoming (this/next week) | Payables run sheet | Ops | Twice weekly |
| FX plan (this week) | Treasury sheet | Director | Weekly |
| Exceptions log | Email/portal alerts | Ops | Daily |
7. Policy snippets you can adopt
- Operating cash floor: Keep ≥ 45 days of expenses across currencies (weighted).
- FX rule: Convert USD weekly Friday 3pm SGT unless balance < USD 5,000.
- Payments cut-off: All vendor invoices logged by Wed 12pm for Fri run.
- Card control: One card per department with monthly cap; receipts uploaded within 48 hours.
8. When to graduate to a relationship package
Consider a premium/relationship tier if (a) monthly international wires > 20, (b) FX conversions > SGD 200k/month, or (c) you need trade finance (LCs, trust receipts). The fee difference is often outweighed by tighter FX spreads and dedicated support.
cash management Singapore, SME treasury, multi currency account, FX hedging, virtual accounts, payable automation, PayNow business, Xero integration
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About the Author
Helen Lili – Editor, Research Lead
Helen leads tariff analysis and product change tracking. She maintains the normalized dataset that powers our comparison tables and ensures each claim links back to a dated primary source.
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