NORTH-West firms with customers in the Eurozone risk getting into financial trouble if they fail to make thorough preparations for next year's currency change, it is claimed.
Chartered accountants say time is running out for the many small and medium-sized firms which have still not considered the full implications of the switch to the Euro on January 1, 2002.
Bolton-based Rod Sellers, president of the Manchester Society of Chartered Accountants, said companies in the Eurozone were legally obliged to trade electronically in the euro from that date.
"It's been estimated that it could take up to six months for relatively small companies to be properly geared up for the change and many are simply unaware of the need to act promptly," he said.
"Pricing and invoicing in euros is not as simple as it might seem because it can affect banking, IT structures, personnel, training and legal issues". He said one obvious pitfall involved invoices in existing currencies with a 90-day payment period. They would not become due for payment until well into next year and could be subject to serious delays.
Mr Sellers said it was also important for firms to consider the psychological impact of pricing in euros, and whether or not customers might suspect adjustments had been used as a device to increase prices.
"There is some confusion because there will be a dual currency period for cash transactions in Eurozone countries but it shouldn't be seen as an opportunity to delay getting ready," he added.
"It will be extremely difficult if a firm is told by a customer that from Monday they want invoices in euros when they haven't even thought about it".
Further information from the North West Euro Forum website www.eurohelp.org.uk or from their phone helpline on 0151 288 5137.
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