UK firms are not ready for a single European currency, two leading business organisations have warned.

BBC correspondent Ed Crooks reports on the practical implications of the single currency (Dur: 2'39")

Even though the UK will not be in the first wave of countries signing up to European Monetary Union in 1999, its introduction will have a massive impact.

Already, some companies like Siemens have said they will do business in both sterling and the euro, while a number of major retailers are changing tills to accept both currencies.

Adair Turner: "The transparency of prices will increase across Europe"

But the Confederation of British Industry (CBI) and the British Chambers of Commerce say many companies, especially smaller ones, are not prepared for the start of the euro. They are hosting a conference to tell business what it needs to do.

Adair Turner, director general of the CBI, said: "Firms will need to consider changes like adapting their invoicing and IT systems and ensuring that their contract terms reflect the euro's introduction.

"As more and more companies quote their prices in euros, the transparency of prices will increase across Europe."

If and when the UK joins EMU, firms will have to make changes to their company accounts, payments, payrolls, sales and marketing which will involve "significant" modifications to computer systems, said Mr Turner.

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