The Euro will be present in the daily operations of a company as from the first of January: purchases, sales, bills, accounts, tax declarations, etc. The tax authorities will not accept tax returns that are not in Euros. All companies must be prepared so as to be able to present their tax returns in Euros. Taxes depend on the accounts and these must be closed at the end of the year and expressed in Euros.

We should remember that January is a month of many tax declarations: quarterly for individuals, businesses, yearly resumes of personal deductions, business rents, IGIC, etc. Bills can be paid in pesetas up to the 28th February, but not from the first of March of 2002 onwards.

It is advisable to familiarise all company personnel with the new currency, above all staff that work on the cash desk. Knowledgeable staff with give a good image to the clients and suppliers. Although the notes are very advanced with regard to security it is important to provide staff with the necessary information in order to avoid false bank notes especially the 500 Euro note (83.000 pesetas).

Any company that cannot carry out transactions in Euros from the 1st January 2002, may encounter serious problems in the future.

There is a possibility that the banking system will be seriously overloaded and that companies who have not prepared themselves for the Euro before the 31st December 2001 may suffer delays in their business activities. This overload will also probably affect other company consultants, accounts, tax advisors, suppliers of computer hard/software etc… The law will demand that all internal accounts must be in Euros.

Wages from January onwards will be paid in Euros. Companies that pay their employees solely through the bank will be able to do so in Euros.

Banks will carry out all their transactions with companies in Euros, although the company may prefer to continue operating with pesetas. Companies may try to use the peseta just when paying in cash, however after about two weeks there will hardly be any of this currency in circulation as it will have been substituted by coins and Euro notes.

All payments with credit cards will be converted into Euros. All cheques and other forms of payment must be in Euros. Any company that makes out their bills in pesetas will have to convert them manually to Euros.

The fixing of prices in Euros must be done carefully. Any mistakes made at the time of fixing prices could cause the company a loss of profits, cash flow or clients

It is likely that if the accounts are done in one currency and the prices, bills and income in another currency that there will be mistakes made and will expose the company to risks of fraud and a loss of financial control.

Companies will have to convert any existing contract to Euros using the conversion types that have been legally established. Companies will also have to convert their capital to Euros.

The majority of companies will have to change their computer programmes to Euros or introduce a compatible version. It is essential that the decision is made before the 1st of January 2002 of whether to substitute for another computer programme, bring their current one up to date or to reuse.

Although this advice is based on the practical questions related to the accountancy and information technology changes, the Euro will probably have significant effects on the whole of the commercial strategy. Competition will make all companies revise their strategies of price fixing. Companies that do not pay much attention to these strategic consequences are placing their future at risk in the long term.

All companies must be ready for the Euro. Banks may find themselves unable to attend to the needs of their clients due to an overload in the banking system. Finally it must be said that the introduction of the Euro is a 'foreseeable event'. With regard to risks that occur due to insufficient planning or preparation, Insurance Companies could argue that companies have not prepared themselves adequately enough for this change in advance.