Problems include setting up back-office systems to include re-pricing goods and services for the euro-zone in euros, the effects of the euro on accounting systems and handling UK VAT on local invoices denominated in euros.
Basda has released a paper which aims to help companies ensure they will be euro-compliant on 1 January 2002.
The association advises businesses to establish a euro price list for goods and services in order to invoice effectively in euros. Failure to do so means UK-based companies take an exchange rate risk with the pound floating against the euro.
In terms of pricing goods, Basda points out that some advanced stock-control systems allow for different sales price lists in different currencies. However, the group notes that some systems only allow one price to be converted to a foreign currency on the fly. It is important that euro prices are consistent and do not reflect the fluctuating nature of the pound to the euro.
The euro poses rewards and risks for UK businesses. In a previous article, Basda chairman Dennis Keeling wrote: "The many businesses unprepared for the [euro] changeover risk collapse, perhaps taking their trading partners' money with them."
Keeling advised businesses to make careful checks on all quotations, orders, invoices, payments and currency conversions, given that accounting staff would be grappling with the new currency.
What does the euro mean for your business?
Read Dennis Keeling's article >>