Small firms urged to prepare for the euro

The Federation of Small Businesses (FSB) has warned its 168,000 members to gear up for the euro, and to upgrade IT systems to cope with the new currency. But some users and resellers have questioned the advice.

"Whatever their personal viewpoint on the euro, if they want to be open for business and open to all kinds of customers as long as it is legal currency, it is wise for a small businesses to prepare itself for the euro," said a spokesman for the FSB.

"Even euro-sceptic companies such as Dixons and Wetherspoons have geared up their computer systems to accept the euro, even though their bosses don't want the UK to go into the euro," he added.

The spokesman explained that small businesses should be talking to their banks about opening up euro accounts and ensuring that their IT systems can cope with the new currency.

According to the FSB, major customers will demand to be invoiced in euros and that means having software in place that can handle such transactions.

Many companies that won't deal in euros may find themselves frozen out of new contracts. "Whether it is legal, illegal or immoral is neither here nor there," the spokesman said. "The duty of the proprietor of any company is to make sure they remain on those tender lists."

But many businesses in the UK only deal with other UK businesses. Leigh Ashton, founder of the Sales Consultancy, which provides sales and marketing services for small businesses in the UK, believes that businesses such as hers will not make arrangements to upgrade accountancy software to cope with the euro.

"I think that until such time that more organisations start dealing in euros, it is really unlikely that we will do anything to change our IT systems," she said. "It is not that we are anti-euro but, at this moment in time, I have no intention of doing anything about it."

The sentiments were echoed by Andy Weatherleyor of reseller Accounting Technology. "In the UK, there may be not such a great need for multi-currency software because people will be able to work things out on a calculator beforehand as there is only one other currency to deal with," he said.