The Y2K problem is facing business worldwide. Economists have estimated millions of dollars will be spent to correct Y2K problems, but even more is at risk if systems fail. The problem is foreseeable and fixable, but time is running out. No single solution will apply to all systems so a good systems consultant may be necessary.

Y2K problems can effect your business in many ways-you may use date-dependent computer systems that determine time duration for activities, such as payroll, accounts receivable, renewal scheduling, or automated invoicing. With two-digit dates, calculated results could be invalid, producing unexpected results or stopping an important business process, such as renewal list generation.

You may use vendor-supplied systems that involve date-related processing, such as cash registers or point-of-sale devices, scheduling systems and bar code readers. It may be necessary to update your systems with the latest Y2K compliant versions of software and hardware or find a new vendor who can provide a Y2K complaint system.

You may have business-critical equipment that could be adversely affected, such as time clocks, telephone systems, local and wide area data networks, security systems, elevators, or heating and air conditioning systems.

The first step is to become aware of potential problems in your organization. Then review your computer systems with an expert to determine if they are Y2K compliant, and if not, what steps you need to take to make them compliant. Finally, once a solution has been developed, test it to make sure they work. Make sure your vendors and suppliers are prepared as well.

Also, business owners should be aware that insurance coverage was not written to respond to claims arising from problems caused by Y2K computer failures. Some companies have created endorsements or supplements to their policies which can be purchased for additional premium.

But since no one can foresee exactly how a system failure will impact business, it's best to be prepared. Ultimately Y2K is a business issue that can be solved and handled like any other challenge in the marketplace.