A little less than a year separates us from the arrival of the new currency on the Croatian market. The current situation of knowledge and awareness of state institutions, as well as physical and business users, is really low. During each change of principles and laws, the legislator takes everything in its regulatory framework to adapt the situation in the country to the accompanying changes.
Any law that changes puts legal entities in an awkward situation where the question of how to implement something in their daily lives and business is most often asked. This issue bothers not only legal but also natural persons, during every change of principles and laws within a state. For each of these implementations of the new law into business, external partners such as business consulting experts are most often hired.
Adjustment time starts as early as autumn
The current proposal for the date of the introduction of the second currency on the Croatian market is planned for this year. Croatia is currently going through the preparatory period of the ERM 2 mechanism, while all important dates for the introduction of the euro will be confirmed only in July, when the exchange rate will be determined. As of September 5, 2022, a dual price system should be shown in Croatia - in kuna and euro. Also, from January 1, 2023, it is necessary to enable all customers to pay in two currencies, while entrepreneurs must then double-state the price, but at the same time post and invoice all invoices in euros. From 15 January 2023, it will be possible to pay in only one currency, the euro, and the price in kuna, i.e. double, will be required by the end of the same year.
IT system support will be of great help to all entrepreneurs
Changes in the business system will be greatly contributed by the support of the IT system, in order to adapt the business to the new law. All contracts, text forms and key documents will have to be presented additionally and in euros in accordance with the fixed exchange rate to be defined. All IT bookkeeping and accounting systems, as well as cash registers in stores, must be ready before January 1, 2023. Small, medium and large entrepreneurs will want to secure their cash in the corresponding currency, and thus will have to look at their current situation for 2022 and thus estimate how much they will earn in 2023, only in euros. Entrepreneurs must record all activities from 1 January 2023 in euros, which must adjust their IT systems. Most systems can be switched to another currency through automation, but behind all this lies a series of decisions and processes made by leading people within the company.
Hiring external business experts
Business analysis through the euro system will be an inevitable topic of all panels and conferences. Entrepreneurs who do business with cash will have to prepare a significant number of coins in order to continue their business. This is significant due to the purchase with little cash, which customers have done so far with paper banknotes of the current currency. The solution to the lack of cash will be cashless payments, digital wallets and rewards for loyal customers who pay contactlessly.
All this work requires some preparation and agreements with suppliers and partners. Although the support of the state leadership is lacking in these situations, even now Grant Thornton experts can greatly help with their advice and provide support and facilitate entrepreneurs throughout this transition. The adjustment of reports and data for each entrepreneur will be facilitated with the proper conduct of external partners who will organize the company's business according to the new laws. Adequate and joint information of all parties involved will be a big step in the business of each company, and thus in the transition and change of currency and business.