Whichever side of the fence that you’re on, there’s little doubt that the UK’s decision to withdraw from the EU, along with the single market, is going to have an impact on your business. There are an enormous number of considerations to be made, but we’re going to take a look at some of the major points that most businesses will need to deal with so that you can begin to plan your own Brexit strategy.
Do you do transactions in Euros (or Dollars)?
Exchange rates are the first clear financial effect of Brexit. While we may need to wait until the actual date of withdrawal, which is expected to be in a little over two years (assuming the government go through with their plan to trigger Article 50 in March, and the House of Lords causes little delay), for many specific impacts, the value of the pound is seeing immediate Brexit fallout. It has lost significant value against both the dollar and the euro, with the potential for further downsides.
This sudden decline in value has different meanings to different businesses. Those who export their products may well expect to see increased business as other countries look to take advantage of a weaker pound. However, operating costs for most businesses are likely to go up, as prices rise for numerous imported products.
Some businesses that receive and pay some of their funds in other currencies are already looking to guard against any further slides by opening bank accounts in foreign currencies in order to reduce the need to exchange, where considerable costs can be incurred.
To conclude, it’s essential that you begin planning now for any developments. The current uncertainty makes things difficult, but the earlier you can guard against negative changes, the better and CBS are just the people who can help you with this