What Should Finance Functions do to Prepare for Brexit?
Britain’s exit from the European Union is due to take place in a matter of months. While the true impact of Brexit is as yet unknown, we do know that businesses large and small will be affected in a number of predictable ways. The worst thing that SMEs can do is to ignore the issue; for the survival of your business it’s vital to put plans in place now for a post-Brexit landscape.
Set up a EU subsidiary
First, look at your customer base. What percentage of your business is with other European countries? If EU trade makes up a significant proportion of your business dealings, you’ll need to plan ahead and consider setting up a new subsidiary. Minimise the risk now, of new rules being introduced post-Brexit which might make it more complicated and costly to do so. You may have already considered setting up a new entity in mainland Europe. If so, now is the time to act.
Enable remote working
For many individuals who are EU nationals, it will make sense to move back to European locations after Brexit. Don’t lose valuable talent if you can help it: with Cloud-based software and online collaboration tools it’s easy to accommodate remote working, allowing existing employees to continue their roles from overseas.
Allow for post-Brexit reporting
Your financial reporting requirements may change after Brexit. For companies headquartered in the UK with subsidiaries overseas, AccountsIQ can customise reports to suit the local requirements of each country. Our accounting software has ability to carry out the basic localisation requirements for these subsidiaries to operate, with central control through the UK. Our coding structure is very adaptable to different locations, can easily provide a very granular level of reporting – and our customised reports mean you’ll be able to meet the post-Brexit requirements of a central agency.
Minimise the impact of currency volatility
The volatility in sterling since the Brexit referendum is likely to continue post-Brexit. So having a system that can manage multiple currencies and the ability to settle using wholesale FX rates is important. FX fluctuations can have a big impact on business, with any delay in settling invoices potentially losing an SME money. So it’s reassuring to know that with AccountsIQ’s integration with TransferMate, settling is instant and FX rates are updated in real time. This feature could save SMEs on average 2% on their FX payments.
Get Brexit ready with AccountsIQ
If you’re concerned about the impact of Brexit on your SME, using AccountsIQ’s cloud accounting software will help you to protect your business.
- We have 2 data centres, one in the UK and one in mainland Europe. These will ensure that you continue to be compliant with data regulations by hosting your data in the right country both pre- and post-Brexit.
- Our FX integration and partnership with TransferMate will ensure that you get access to best FX rates, minimising the cost to your business of currency volatility.
- We’ve also upgraded our consolidation functionality; not only does it allow you to report and manage all your subsidiaries in all locations; it now includes live FX rates that get fed into the system in real time.