The Single Euro Payments Area (SEPA) is due to come into effect in Ireland from the 1st of February 2014. This means that all companies including S.M.E.’s sole traders and those working in the accountancy industry need to know about SEPA and ensure that their business’s and client accounts are fully compliant with all areas of the legislation in order to ensure that business operations are not adversely effected by the changeover.
SEPA is basically going to standardise financial payments across the member states of the European Union. SEPA will make the entire process of transferring money across countries more streamlined and efficient. It is also going to have major implications for the way in which companies pay their employees as well their suppliers and contractors.
The Central Bank Of Ireland has produced this SEPA migration guide which is something anyone involved in business in Ireland should read in order to gain an overview of the entire SEPA process and the effect that it is going to have on Irish companies in the coming months and years.
The below graphic from the report highlights some key changes that SEPA will bring in the way in which money is transferred across Europe:
This video which was produced by the European Central Bank explains in more detail how SEPA will affect those living, working and trading within Europe and highlights some of the basic features that will be contained within SEPA .
The implementation of SEPA will mean that Irish companies will be able to trade more effectively and faster with their business partners and customers throughout Europe. SEPA is going to make it possible to complete electronic payments within the 33 countries in one working day, as opposed to the current system which has seen payment transaction times fluctuate widely throughout Europe.
Another good on-line resource regarding key factors to consider in relation to how SEPA is going to affect Irish companies can be viewed here. Of course Big Red Cloud would be happy to answer any further questions you have on how SEPA is going to affect your business operations on both a short and long term basis.
However recent reports suggest that the deadline for full compliance for SEPA may now be delayed for six months until the 1st of August 2014 due to the fact that the European Commission are concerned that migration to the new SEPA system will not be completed by enough companies by the February 1st Deadline. This is a developing situation that Big Red Cloud id going to be following very closely over the next weeks and months to ensure that we are fully aware of when the SEPA legislation becomes mandatory for our Irish based client base.
We would also like to take this opportunity to reassure all our existing and potential customers that our 2014 payroll software is already fully SEPA compliant to ensure that you’re the transition to the new SEPA system is as streamlined as possible for your business.
Our fully bespoke cloud based accountancy solution can be tested on a free trial basis so you can decide for yourself if you think that our product can do the business for your business.
Do you think that your company is already complaint with SEPA? We would love to know your thoughts and opinions on how you think SEPA will affect your business operations. You can start a debate with us on our Facebook page and indeed with others in the business community in Ireland.
So the best of luck with your business operations in 2014 and if you need our help, advice or just want to have a quick chat Big Red Cloud’s door is always open.