1st of January - Eurozone joined Latvia!

Preparing Your Company to Work in Euro

The euro changeover is a very huge project supervised by public administration institutions; however both entrepreneurs and each money user will also be involved. For enterprises the euro changeover will definitely mean not only adopting their IT and accounting systems, but also envisages wider processes. Which measures are most appropriate for an enterprise preparing for the euro changeover depends on many factors - for example, its size, its main fields of activity, the extent to which it deals with cash, its reliance on IT systems, etc.

Taking into account general euro changeover principles and scenario entrepreneurs will have to ensure compliance with the set requirements dual circulation period of the lats and the euro, compulsory period of dual price displayas well as they will have to consider revision of pricing policy or development of new one, and other aspects.

Organisation of the Project

To ensure preparation of company's internal action plan and perform efficient euro changeover the company shall consider timely development of its own euro changeover project.

Preparations should start as early as possible. It is useful for SMEs to start their internal preparations with a view to taking advantage of the opportunities provided by early preparations.

A company preparing for the euro changeover shall take the following steps: assess the expected impact of the change of currency on its operations, define a strategy, appoint person to coordinate the changeover preparations, develop an action plan with clear tasks and plan financial resources.

In preparing for the changeover and later - in performing activities related to the changeover process, companies should use all sources of information available to them.

Great attention shall be paid to adaptation of accounting and financial management, as well as IT systems,management of cash and information and training of staff.

Relations with customers and suppliers

With the introduction of the euro, customers in the retail sector are likely to feel uncertain and, in some cases, concerned about potential negative consequences, such as price increases. Confidence-building measures based on concrete information can counteract negative attitudes and increase acceptance of the euro.

For instance, customers could be made aware of the conversion rate by being shown examples (e.g. price tables for basic products and leaflets). This is an easy way to show that prices have been converted correctly, and to reduce uncertainty.

Business-to-business customers also need to be properly informed. They should know when the company plans to start using the euro

It is advisable to ask existing suppliers well in advance to send their price lists and invoices in euro. SMEs should be aware that the introduction of the euro could be an opportunity to obtain more favourable terms of supply.

The principle of contract continuity, which means that existing contracts with amounts in the national currency remain valid, applies to all existing contracts. In these contracts, monetary values will be converted into euro using the officially fixed conversion rates.

More detailed suggestions for preparation to currency changeover can be found in the brochure of the European Commission.