Since the referendum decision in 2016, in which the UK public voted to leave the European Union, Brexit has been at the forefront of many people’s minds. With the deadline for exit approaching rapidly – it’ll happen in March 2019 – businesses need to make their own plans to deal with how this will affect them.
In particular, a concern for many is money – how will Brexit affect how you make money, how will Brexit affect how you can spend your money and how will Brexit affect the way in which your money moves between the UK and Europe? Here are some things you need to know about Brexit and your money.
There’s likely to be ongoing uncertainty for the Euro
Currency exchange rates have fluctuated both up and down since the Brexit referendum result and that’s likely to continue as we near exit. That means that businesses need to consider how much exposure they want to the Euro going forward. There could also be higher cost implications as we progress towards leaving the EU, which should also be considered in forward planning.
Strategic planning is essential
Recognising the above, detailed strategic planning is essential for all businesses in the coming year. While many of the details regarding Brexit remain unknown, discussions are ongoing and a more solid understanding of the UK’s standing following the exit from the EU should be known in the next few months. As details trickle in this will allow businesses to make decisions based on more concrete information.
Review all contracts
Businesses need to review their current contractual arrangements with their clients to ensure that the contents comply with the positioning of the UK outside the EU. In particular, you need to review wording and ensure that there are break clauses in place should they be needed.
Prepare for more paperwork
If your business deals with imports and exports from Europe then we think it’s fair to assume the amount of paperwork you’ll need to complete will rise after Brexit. This can slow processes down significantly, resulting in a loss of cashflow as you wait for products to arrive that you’ve already paid for, or wait for customers to receive goods and pay for them. Before Brexit, take a look at your current processes and see whether you can make any improvements to simplify what you do. The easier things are now, the easier they will be in the future.
US-based? Check how Brexit is benefitting you
While there is a lot of uncertainty for UK-based businesses about what Brexit will mean for money, there are already some positives evident for those outside the EU. For example, the exchange rate means that those in the US, in particular, can get great rates when exchanging dollars for pounds, making products in the UK much cheaper to buy than they were before the referendum result.
To ensure a healthy Brexit for your money, the main message over the next few months is to stay alert as to what is being determined, and do whatever you can to get ready. Brexit holds a wealth of possibilities for businesses, but only for those who seek to find them.