An article in Q2’s ‘InBusiness’ shows that less than 10% of Irish Businesses have transferred to SEPA, coming to you February 2014 when the Irish Clearing System will cease to exist. Have you transferred yet, or even thought about what this means for your Business?
SEPA- the Single European Payments Area has been pencilled in with a final deadline of February 2014 and Businesses and Banks within the European Single Currency area are required to phase out domestic credit transfer and direct debits by then. SEPA is Europe’s political response to drive toward single market harmony. Right now, the goal is to eliminate national barriers to payments and creating an integrated euro payments environment. However the broader context for SEPA is in making the banking system more efficient, in terms of process and of costs/ competition.
SEPA is seeking to unify the language of payments processing and provide benefits for Business through streamlining. SEPA has even created a new payment message language in ISO 2022 XML. It will make it easier to switch banking providers and operate with less bank accounts, and perhaps even one! With less accounts to maintain, your business may avail of better liquidity levels and working capital through consolidation and transparency of accounts.
Based on figures from the ECB, only 2.34% of all euro credit transfers migrated to SEPA in the latter half of 2011, and this does not bode well for Irish Business. In fairness to Irish Business the deadline has moved many times, and a confirmed regulation that the Corporate entity must communicate with the Banking entity to use the new payment method, presumptions that this had a Bank only impact have been ruled out. The Project scope and deadline are now laid out- understand and be operational with SEPA for Feb 2014.
So, what to do and how to approach this for your Business? Put simply, these measures will impact your Payroll, and accounts payable/receivable amongst other processes. And whilst most people are averse to Risk and Change, this is going to be one change you cannot avoid.
This necessity for change could be the ideal time to grasp an opportunity to improve your Business in two ways. You can avoid the necessity to rewrite, and re-engineer your Payroll Processes around this thereby saving time, effort and money as well as reducing significant risk for error by Outsourcing Payroll at the same time. Outsourcing to a Payroll Bureau adept at Payroll Service setup and provision lessens the Change Management risks, as we do this for businesses every day. Secondly, you can benefit, by reducing your handling of Private Personal data within the change process (with its Data Protection and management requirements) by simply handing your data and it’s protection over once to a Partner you trust to manage this service for you.
Contact Paycheck Plus today to discuss your SEPA/ Outsource Payroll Service needs and we will help you step through the process with our Personal, expertise service.