The introduction of the euro may still be some way off but scores of Irish businesses will start the challenging task of changing over to the single currency as early as next week.

October 1st, the beginning of the last quarter of the financial year, should see a significant speed-up in the tempo of euro preparations as firms adhering to the National Euro Changeover Code move to the dual display of prices.

But many firms are expected to go well beyond the code's requirement of quoting prices in both euros and pounds - something many are already doing. Instead, they are expected to adopt the euro as the currency of choice in their dealings with other businesses.

While the euro will not become a reality for the consumer until the single currency becomes physically available on January 1st, businesses are increasingly likely to switch over to its use when invoicing customers, paying suppliers and compiling inventory lists in the weeks ahead.

Using the euro in this way will give businesses an opportunity to test their systems and deal with any glitches well in advance of the official introduction of the single currency on January 1st, 2002, business representatives say.

"Over the next few weeks, companies will start testing their systems and software, piloting IT and ironing out any tweaks before January," says Mr Pat Delaney, head of the Small Firms Association (SFA). "It's like a pilot run because people need to know that everything works."

While large firms have led the move to switch over to the use of the euro - many firms that have European parents are already up and running - the decision will have a knock-on impact on the host of small firms with which they do business.

The SFA estimates that more than half of its members will begin to change their systems from Irish pounds to euros from October 1st.

"It's a 'line in the sand' date, the day everyone moves on," says Mr Delaney. "You either get in line or you get out of the game."

While October 1st is not an official date in the euro changeover timetable, it represents the start of the last quarter of the financial year. Many firms will be planning ahead to the next quarter, making it practical to start using the currency they will have to operate in from the first quarter of next year.

In addition, the move to dual pricing has focused attention on the issue. According to the National Euro Changeover Code set out by the Office of the Director of Consumer Affairs, prices of goods and services should be displayed in both currencies to the fullest extent practicable for a minimum of three months before and three months after the introduction of the currency.

According to the code - designed to protect consumers - dual displays of prices should be unambiguous, easily identifiable and clearly legible.

While firms are not obliged to adhere to the code, many have chosen to do so, either individually or through trade associations. In return for signing up to and meeting the code's requirements, they will be allowed to display an approved logo that should reassure customers they will not be out of pocket because of the changeover if they shop there.

But while some firms have already done much work on the euro - from signing up for the code to readying their systems - a number have yet to embrace it.

Those firms that have not yet thought about the euro are advised to do so immediately.

Small firms are considered to be less well prepared than larger firms but observers note that they can usually deal with such issues more quickly than bigger firms.

But there is a lot to be taken on board and delaying too long increases the risk of running into bottlenecks, business advisers say. Aside from the implications for computer systems and accounts, the changeover will affect sales, marketing and pricing, inventories, relationships with suppliers and customers - while staff will also need training.

Mr Eoin Gahan of Forfβs, which runs the EMU Business Awareness campaign, says if everyone leaves their preparations to the last minute, there could be bottlenecks with a consequent increase in costs, particularly in the IT area. "We are stressing the urgency of this. For businesses that have not done anything, now is the time to do it."

jmosullivan@irish-times.ie