TechnologyLetters – Time to wake up to e-day.

Letters - Time to wake up to e-day.

Just because Y2K didn’t result in the expected crop of disasters, there’s a widespread feeling that the industry’s current call for action over the euro is nothing more than alarmist.

Accountants and managing directors must wake up! Anyone who trades in any way with Europe has a new crisis point on e-day – 01 January 2002.

Businesses have had so long to prepare that many made their initial changes and then hit the snooze button.

The final countdown to the euro is only three months away and few people appreciate that there are then only two months until all the EU currencies cease to be legal tender.

They do not full appreciate the actual impact of losing currencies such as the mark, franc and peseta. According to recent research by BASDA as many as 60% of UK businesses will have to face the harsh reality that they are not euro-compliant and will have to overcome systems and operational issues as the deadline approaches.

More than just a few UK companies are going to be affected by e-day.

Companies with parents or subsidiaries in Europe should be on their guard.

So should companies that buy and sell in continental Europe. Even if they currently get and receive all overseas invoices in sterling, they may soon find their European (or American) trading partners starting to insist on euro payments.

Getting ready to face the euro is going to cost money, but burying the corporate head in the sand could cost even more. Businesses risk lengthening payment cycles and getting hit where it hurts – in the cashflow!

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

4d Martin Herron, MHA MacIntyre Hudson
Cybersecurity webinar: how protected are you and your data?

Security Cybersecurity webinar: how protected are you and your data?

1w Emma Smith, Managing Editor
Back to the Future: why financial transformation just hasn’t happened

Technology Back to the Future: why financial transformation just hasn’t happened

1w Workday | Sponsored
GDPR: Don’t forget the human touch

Security GDPR: Don’t forget the human touch

2w Neil Patrick, Director of GRC and Centre of Excellence EMEA for SAP
5 key tech innovations helping accountants transform their businesses

Accounting Software 5 key tech innovations helping accountants transform their businesses

3w Heather Darnell, Founder of Ask the BOSS
HMRC scaling back digital projects to ‘release project capability to EU Exit work’

Brexit HMRC scaling back digital projects to ‘release project capability to EU Exit work’

3w Alia Shoaib, Reporter
What is the role of governance, compliance, and control in financial transformation?

Corporate Governance What is the role of governance, compliance, and control in financial transformation?

4w Workday | Sponsored
Grant Thornton joins with Immersive Labs to increase cyber talent

Career Grant Thornton joins with Immersive Labs to increase cyber talent

1m Lucy Skoulding, Reporter