The preparation for the introduction of the euro in Croatia coincided with significant inflation, resulting in a considerable workload for accounting services, from which clients expect advice and assistance in adapting their business to the new currency, as well as in overcoming inflation. However, not all entrepreneurs will face the same level of difficulty during this transformation. How this very important process in business unfolds depends on the type of business each entrepreneur is engaged in.
According to Dubravka Kopun from the Kopun Group, a company that provides accounting services, auditing, tax and legal consulting, and identifying business difficulties, and is a member of Nexia International, a global network of independent accounting and consulting firms that follows the latest global trends in the accounting and consulting sector, preparation for the introduction of the euro is extremely important, but entrepreneurs engaged solely in wholesale business (B2B) should not face significant issues related to the introduction of the euro. However, entrepreneurs with retail operations (B2C) may encounter considerable challenges.—
—
– The greatest burden will fall on entrepreneurs in the retail segment, which is why adequate preparation and staff training are crucial. For retail employees, the first fifteen days of 2023 will be particularly challenging, as payments will be allowed in both kuna and euro. Therefore, quality preparation of software packages during this period, quality staff training, and allowing employees a longer period for closing and counting cash deposits will be decisive for a smooth transition to the euro without much stress – explains Kopun.
She believes it is important to emphasize through the media that during the first fifteen days of 2023 (when payments will be allowed in both kuna and euro), payments should be made either by card or exclusively in euro, minimizing payments in kuna to the lowest possible extent, thereby easing the burden on retail employees.
IT Sector Assistance
– When it comes to the transition to the euro, we believe that the system should be simplified as much as possible. What we have operationally noticed is that a large number of entrepreneurs who operate at both B2B and B2C levels have decided to dual-display amounts on payment invoices since September 5, 2022, regardless of the end customer (legal or natural person). This means that it ensures compliance with the requirement for dual pricing in transactions with end consumers (natural persons), while also simplifying internal processes at both the IT and sales levels to minimize the complexity of the system – explains Kopun.
She also emphasizes that during discussions with clients regarding the costs of transitioning to the euro, they have noticed that the IT sector has stepped in to help significantly, and most clients of the Kopun Group will not incur significant costs related to the adaptation of software packages, as a large portion of the cost of program adjustments is borne by the IT sector.
The Worst is to Give In
When it comes to advising clients on how to better navigate the recession, the Kopun Group currently recommends the so-called 3P strategy Elon Musk: predict, prepare and persevere, or ‘predict, prepare, and persevere’.
– We have gone through an extremely complex period that is not yet over. Some economists refer to it as a period of disequilibrium, characterized by an exceptionally dynamic environment in which we find ourselves – from supply chain issues, explosive price increases in energy and raw materials, to labor shortages, rising interest rates, and so on. This is a situation that businesses have been facing for over two years, which is why entrepreneurs have been in a state of readiness for recession for some time – notes Kopun, explaining the implementation of the 3P strategy phases.
In the first phase, one should try to predict what is coming. This involves occasionally considering several different projections. Next is preparing the business based on future projections, which currently includes closely monitoring all business costs and re-evaluating key capital investments. Finally, one must persevere in their activities.
– The worst thing is to succumb to general depression during a recession. The fact that we are entering a recession is not an excuse for poor business decisions – concludes Kopun.
