Not enough time to read the full article? Listen to the summary in 2 minutes.

On 1 January 2026, Bulgaria adopts the euro.

For most companies, the change seems simple: switch from BGN to EUR and carry on. But beneath that surface lies a web of adjustments that touch everything from ledgers and invoices to software systems, payroll, and customer communication.

If you’re a CFO, plant director, or operational head with exposure to Bulgaria – this checklist is your new best friend.

What Changes on 1 January 2026?

Bulgaria’s euro entry is official. As of 1 January 2026:

• The euro becomes the only legal tender
• The conversion rate is fixed at 1.95583 BGN to 1 EUR
• There will be a short dual-currency window (up to 2 weeks) for cash transactions
• All official records, prices, contracts, and financial reports must switch to EUR

It’s not just a currency switch. It’s a financial and operational coordination moment that affects every line in your back office and every system that handles money or value.

Accounting: What You Must Update and When

1. Ledger Conversion and Financial Reports

Your general ledger needs to be converted from BGN to EUR on the date of change. Historical BGN figures remain as they are. But from 2026 onward, every entry must reflect EUR equivalents using the fixed rate.

Most accounting systems offer automated conversion tools, but companies will need to:

• Freeze BGN balances at year-end
• Open new EUR books
• Ensure continuity across the closing and opening balances
• Align group consolidation policies with HQ standards

2. Audit Trail and Rounding Rules

Accuracy is essential. Bulgaria’s Ministry of Finance has issued guidance on rounding (typically to the nearest euro cent). Misalignment or creative rounding could trigger audit risks.

For financial statements:

• Apply rounding consistently
• Document methods in your transition plan
• Update audit partners early to ensure compliance

Invoicing & Tax: Make These Changes Before the Deadline

1. New Euro Invoicing Standards

Starting 1 January 2026, all invoices in Bulgaria must be issued in EUR. Dual currency display may be required temporarily in January, especially for consumer-facing businesses, but the BGN will disappear quickly.

Steps to take:

• Update invoice templates
• Adjust ERP and billing software
• Communicate changes to local vendors and customers

2. VAT & Compliance Reporting in EUR

Tax filings, VAT submissions, and intra-EU trade declarations must reflect euro values. Ensure your finance and tax teams:

• Understand the impact on VAT thresholds
• Validate euro rounding in quarterly returns
• Align customs and excise systems for cross-border transactions

Contracts, Pricing & Communication with Clients

1. Legacy Contracts in BGN – What to Do

Contracts signed in BGN will automatically be interpreted in euros using the fixed rate. But smart companies will:

• Issue formal contract annexes to confirm the euro value
• Ensure lawyers check for force majeure or currency-related clauses
• Harmonize supplier agreements where foreign exchange margins previously applied

2. Pricing Integrity & Customer Messaging

A visible switch in currency can create the illusion of price hikes. Avoid reputational risk:

• Use dual pricing during transition periods
• Train your sales and customer support teams
• Clearly communicate that prices reflect conversion, not increase

Fines may apply for misleading rounding or price opacity, especially in retail or services.

Operational Systems: The Quiet Workload Most Overlook

This is where many firms stumble. The euro switch hits more than just finance.

1. ERP & Software Audit

Companies must perform a full audit of:

• ERP settings for currency logic
• Currency fields in databases
• Third-party integration points
• Reporting dashboards

If your system doesn’t recognize the euro as the new base currency, expect reconciliation headaches and delays.

2. Payroll, POS, Inventory & Internal Tools

Don’t forget:

• Payroll systems must issue salary slips and contracts in EUR
• POS systems in stores must accept, process, and report in EUR
• Inventory systems need currency logic updated
• Expense management and petty cash controls will require euro standardization

Any delay here directly affects employees, frontline teams, and compliance.

Training, Risk Management & Team Readiness

Beyond systems, your people need to be ready.

Focus areas:

• Train finance teams on the euro switch mechanics
• Align HR and payroll for legal compliance
• Run internal simulations or test runs for transaction flows
• Appoint a cross-functional euro conversion lead

Some firms bring in external interim leaders to run the transition as a standalone project. Especially in manufacturing environments with complex systems or multiple locations, an interim financial controller or operations lead can ensure a smooth rollout.

✅ [CHECKLIST]: 10 Actions Every Business Must Take

1. Freeze BGN ledgers and prepare EUR books

2. Adjust accounting software and ERP settings

3. Confirm rounding and audit policies

4. Update invoice formats and billing systems

5. Realign contracts and issue amendments

6. Shift VAT and tax reporting to EUR

7. Train finance, ops, HR, and frontline teams

8. Update payroll, POS, and inventory tools

9. Run pre-January testing across systems

10. Assign a euro switch project owner

Final Word: From Mandate to Momentum

Euro adoption isn’t just compliance. It’s a chance to modernize your finance stack, unify reporting, and eliminate FX clutter from your systems.

For companies scaling in Bulgaria – or using it as a nearshoring hub – this is an opportunity to upgrade execution without waiting for things to break.

At CE Interim, we’ve supported manufacturers across Europe through similar transitions. From interim plant CFOs to ERP project leads, we help industrial firms manage change with control, not chaos.

This isn’t just about changing currency. It’s about being ready when it matters most.