Will EU Stay or Will EU Go?
Today’s referendum on the EU could be a catalyst for you to examine whether you need to leave your current arrangement with your business software supplier
The referendum on the UK’s position within the EU takes place today.
It’s an uncertain time. By Friday morning, if the polls are to be believed there is about a 50% chance that the UK will have voted to exit the EU. Regardless of how you feel about either outcome in the referendum, if you are a business owner or manager, it is an uncertain time.
As well as the obvious changes to things like VAT and duties, there will be many additional changes to legislation which businesses may have to take into account.
For example, many businesses are headquartered in the UK but manufacture outwith. In the event of Brexit, trading arrangements would have to be put in place to replace the current free trade ones. Whilst we can’t know yet what those will be, there is a chance that duties will have to be paid when previously they weren’t.
Likewise for businesses who manufacture within the UK and export to the EU, there are likely to be border controls and additional documentation required to verify the origin of the products and ensure they meet EU standards.
Of course, one of the main arguments for Remain is a lessening of red tape and bureaucracy – especially for industries such as food manufacturing.
In either eventuality, the least you can expect is a change to business process and documentation management.
Administrative Burden and Procedural Changes
Of course, it’s not just manufacturers who will have to carry the administrative burden. If you are one of the businesses responsible for exporting over £20bn in professional services to the EU, then you will also have some onerous administrative burden to take on.
You will be affected by changes to VAT like other businesses. If you’re in financial services you may also be affected by the loss of passporting rights.
Loss of trade might result in a requirement to change tariffs or alter business sales strategies to ensure profits remain.
Brexit could signal a change to employment law and health and safety legislation – as the UK government regains control of these issues from Brussels. As an employer you might welcome any benefits of these changes but you need to ensure your employee records and contracts are kept up to date with any changes which are made – regardless of how minor.
Brexit and Business Software
A really robust business software, like NetSuite or SAP Business ByDesign, will help the consequences of the vote – regardless of the outcome.
Get yourself a good, global, cloud based business software which updates with changes to legislation – such as tax, currency and compliance – as part of your subscriptions. Remember that great software will help you scenario plan, deliver real time profitability calculations and come with best of breed CRM to help maximise results.
Consider using a software which can do all the following:
- Global Accounting and Consolidation
- Comprehensive Multicurrency Management
- Audit and Compliance Reporting
- Comprehensive Language Support
- Configurable tax engine
- Robust CRM management
- Accurate Profitability reporting
- Employee Record Management
- Document Management and Enhancement
By transacting using cloud based business software, regardless of the outcome today you can ensure your business is nimble and able to change quickly. You won’t become version locked into a software which suddenly becomes obsolete as a consequence of shifting sands when it comes to things like tax compliance and reporting. And if you need to set up that brass plaque office somewhere in the EU then you can easily set up and roll out your business software from your new location.
There are a large number of risks and uncertainties facing UK businesses just now. Your business software doesn’t have to be one of them.
Written by Emma Stewart- Sales and Marketing Director at Cofficient.