The Brief on Brexit

By: Garrett Shinn, CPA

On Thursday, June 23rd, British citizens decided to leave the European Union (EU) in a 52-48% vote.

Those in favor of leaving the European Union cited concerns over the influence and sovereignty of Britain, whereas those in favor of remaining argued that Britain relies on strength and influence of the EU for global influence and economic stability.

Those in favor of leaving the European Union cited concerns over the influence and sovereignty of Britain, whereas those in favor of remaining argued that Britain relies on strength and influence of the EU for global influence and economic stability.

The long-term economic effects of Brexit will be largely determined by the terms and negotiations made between the United Kingdom and the 27 remaining EU countries. This exit process will take place over the next two years. Since the United Kingdom is the first to leave the EU, the outcomes of the negotiation process are highly unpredictable.

In the meantime, businesses headquartered both within the United Kingdom and abroad are taking precautionary measures. With such an uncertain future regarding currency, labor, and trade agreements, business owners are forced to prepare for a number of potential outcomes.

This high level of uncertainty highlights the importance of corporate scenario planning. In the global market place, it is essential for all businesses to stay abreast of potential economic changes and to have plans in place for when those changes occur. With proper planning, you can mitigate some of the risk that your business may face in an economic crisis.

If you have any questions, please contact the Shinn & Co team at info@shinnandco.com or call 941.747.0500.