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How would the euro affect your business?
The economic and political debates over whether adopting the euro would be in Britain's best interest have abated. However, some commentators believe that the UK's eventual membership of the eurozone is inevitable.
Whichever side you stand on, pro or anti-euro, you need to start thinking about what the practical implications for your business will be, should Britain decide to say goodbye to the pound sterling. Here are some of the issues you may need to consider:
Financial and accounting systems, tills, vending machines, credit card machines and IT equipment will need to be able to deal with making and receiving payments in euros. If your systems are due for a periodical update, you may want to make sure that your software can deal with multi-currency transactions. Staff might need to be trained to deal with conversion rates and to recognise counterfeit currency.
Company documentation, including sales literature, catalogues and invoicing documents will need to be brought up to date to reflect new markets and revised pricing systems.
Your sales and marketing strategies
The single currency allows customers to easily compare prices across the eurozone. You should explore the export opportunities offered by a hugely expanded market, and keep an eye on what your competitors are doing. If handled in good time, the changeover could be used as an opportunity to increase your market share.
Customers and suppliers
Customers will need to be informed about any new procedures. You should also liaise with your suppliers. With the euro they might make savings on imports: make sure they are passing these savings on to you. If they are not, consider shopping around.
Tax and legal issues
Considering the above measures now will help to stand you in good stead should 'not yet' become 'yes', but be sure to seek professional advice about any legal implications that may arise in the event of Britain joining the eurozone.
We like to help your business look ahead. We would be pleased to advise you on any tax or financial implications. Be sure to call us when you need advice.