Geoff Wheelwright Contributing Writer ACCORDING to every major survey con- ducted on the subject over the past three years, small businesses are the least pre- pared of any sector of the economy to deal with the impact of the “Year 2000” com- puter problem (or Millennium Bug, as it is also known). Many apparenily assume that it has rele or no rel- evanee to their lives —- or that it does nor appear on the desktop personal computers typically use in siall businesses. Neicher of those assumptions are true, but to understand them you first have to understand the underlying problem created by the inability of some computers -— along with related data and software — to properly handle dates beyond December 31, 1999. Tt goes back to the original design of computer sys- tems in the middle half uf the century when, in order to save computer Memory space, dates Were stored as six digits rather than eight. This meant, for example that 01/01/69 would be used to represent the date January 2, 1969. The last ovo digits in this form of computer notation represent the last nwo digits of the current year. The first nwo digits of the vear are assuned to be “19.” And that’s where the problem lies, If the last two digits of the year change from 99 to 09, then the com- puter assumies that you are in the year 1900 — not the Year 2000. While this might seem like a minor issue, itcan have huge consequences. Suppose, for example, that you have all your cus- tomer extended warranty information stored on an older computer system that suffers from this “Year 2000 bug.” You will likely calculate the amount of time left on your custonter’s warranty by subtracting ihe current date from the date when the warranty was taken out. If the result is zero or less, then the warranty has expired. If your computer believes the date is in the year 1900 (and the warranty was perhaps taken our in 2992) chen the computer will calculate that -92 years are left on what should be a ten-year warranty and will refuse to honour it. The same scenario can be extend- ed to small insurance firms (which often base their Rie 2000. rates On a person’s age), financial insiitutions (which need to be able to calculate loans that carry into the next century) and hun- dreds of other large and small business applications, One major problem facing small businesses, however, is how Accounting Problems Get You Down? M@ Is bookkeeping a mystery to you? Are you very busy and are to pay for upgrading their computer systenis and data so that they eliminate the Year 2000 bug. This has not been made any easier by Revenue Canada’s traditional methods of calculating NEWS photo Paul McGrath SMALL business owners who don't upgrade their computer systems to eliminate the Year 2000 bug could be facing disaster on Jan. 1, write-offs for computer expenditures. ” Friday, Octoher 30th 9:30am — 5:00pm Rohison Square Conference Centre Recognizing the potennaliv huge negative impact that this could cause, Revenue Canada announced in June thar tt would provide tay relief dor simall and medium sized businesses ta address the vear 2000 computer compliance problem, Under the terms of the tay relief scheme, accelerated capital cost aliowance (CCA) deductions of up to 830.000 will be provided te small and medium-sized firms tor computer hardware and software acquired to replace systems that are not “Year 2000 compliant.” The government saves that this will dow smaller firms to deduct 100% of eligible expen- ditures in the year in which they occur. According to federal minister of finance Paul Martin, many firms have taken action to ensure that their con puter systems will be ready for the vear 2000, but a large number still have not addressed this issue. “The year 2000 computer problem presents a serious cconomic challenge for the Canadian) economy. Businesses must act promptiy if they are going to meet that challenge,” he said. *Thar’s why we are providing targeted tax relief to help case the financial constraints faced by small and medium-sized businesses in addressing this issue.” Specifically, an accelerated CCA deduction will be pro- vided to small and medium-sized enterprises on the cost of computer hardware and. software acquired between January 1, 1998 and June 30, 1999 in order to replace equipment that is not year 2000 compliant. For cligible computer hardware and sofrware, acceler- ated CCA deductions, combined with the regular CCA claims, will result in 100% of the cost of eligikle expenditures being deductible in the year of acquisi- dion, The North Vancouver Chamber of Commerce is co- presenting a four hour session on Solving the Year 2000 Problem and Beyond with the B.C. Chamber of Commerce and the Leadership) and Management Development Council of B.C. The session is te take place at the North Shore Conterence Centre, 1999 Marine Drive, North Vancouver, on Oct. 26th. Mike Fletcher CGA, author of Computer Crisis 2000, will deliver a seminar to stress the importance of the Year 2000 problem and how it can potentially affect everyone. He will later host a panel including repre- sentatives from BC Hydro, BC Tel, Microsoft and Royal Bank to share information about how their organizations are tackling the computer issue. In addition, BC Hydro will be leading a session on energy; a Royal Bank spokesman will be talking about how the Internet is changing the world’s commerce landscape: BC Tel will lead a session on communications and how telecommunica- tions will play a larger role tor busine: es; a Microsoft represen- tative will discuss the use of technology to grow a business by attracting and retaining customers. The Solving the Year 2000 Problem and Bevond seminar starts at] p.m. and ends at 5 p.m. with a reception and trade ‘show hosted by Industry Canada until 7 p.m. Cost is $35 for Chambir members, $45 for non-members, Call the North Vancouver Chamber at 987-4488 to register and for more information. A go pac ga pe 6 6 6 o sree North Shore Royal Bank Financial Forum lacking time and/or knowledge? tu Judge White Theatre € Come join us at Royal Bank 2n@ Floor - 1789 Lonsdale Ave., North Vancouver . : i & Contevence Extthit Area Are your accounting re FO rts GEN DA We have an exciting schedule of guest speakers lined up covering and tax returns behind © all of today's HOT FINANCIAL TOPICS. Trade experts will be on 9:30am —_- Deaors Open te Public site throughout the day to answer specific questions and give you schedule? 10:00am — Entreprenour Case Study Mark Whalen, Urban Organics the opportunity for “Hands On" demonstrations. . 10-45am Speaker Presentation “Small Business Is Smart Gusiness” WED., OCT. 28 THURS., OCT. 29 @ is Revenue Canada bugging you? ~ Ministry of Small Business 7:30-8:00 Be Your Own Broker 11:00-11:30 Wills & @ Do you need to talk to Speaker Presentation “Postal Solutions for SOHO’ ” = Canada Post € 8:15-8:45 Managing Foreign Estate Planning Entrepreneur Case Study Lynne Harrison, Franchise Qvmer, Makiboxes Etc. Exchange 11:45-12:15 Introduction to someone who can help you and your company? & it.3dam 12:18am 1:00pm = Speaker Presentation “Iwereasing Revenues with Direct Ma® Gempalgas ¢ Investing 3 9:00-9:30 Personal Banking & Afaris Uning the Internet” ~ Piney Bowes of Canada “investing On-Line 12330-1:00 Effective Mural Bund Speaket Presentation “V2K Issues for Smal Buslense” - Raven Group International Portfolio Personal Hankin 3g Entrepreneur Case Study Mark Mensing. Boomer Promotions Management Investing On-Line Speaker Presentation “Ustag Emall & Internet To Bull Sates 10:30-11:00 The 10 Most Cammen Electronic Business ~ Internet Direct Mistakes Investors Make Payments; Collections & and How to Avoid them Disbursements Money Markets and Registered Education Making Better Use Savings Plan of Short Term Cush — 3:30-4:00 Women and Investing Registered Education 4:15-4:45 Marketing to the Baby Savings Plan Boomers Guest Speaker: Maureen MacLachlan 5:00-5:30 VIP Banking Program for Doctors/Dentists/Veterinarians 5:45 6:15 Successful Investing This is an Open House for clients & non-clients. An event not to be missed? For more information, contact your Account Manager or call 981-7821 e oe ee 9 1:45pm 2:30pm 3:15pm 9:45-10:15 3:35-3:45 2:00-2:30 4:60pm 3080 “Ack the Export” Help fsa 11:18-11:45 2:45-2:15 (16:08am - Secs & 1:0090 ~ 2:885en} internet Cate Call DORIS COLLIGAN at THE HAPPY BOOKKEEPERS inc. You will be glad you did. Phone 983-5421 The first meeting is free of charge. 12:00-12:30 24 Hour Business Banking Into The Year 2000 12:45-1:15 per, ESSN ,