Zim currency causes accounting crisis

SA-based software developer GreatSoft is working with its Zimbabwean clientele to establish clarity on the impact of their strategic management accounts after the Zimbabwean dollar was rebased last week.

This is according to Bruce Morgan, MD of GreatSoft, which is developing new software routines for the main accounting practices in Zimbabwe to accommodate the changes in the currency.

The Reserve Bank of Zimbabwe rebased the Zimbabwe dollar last week by taking three noughts off the valued currency. Money that was worth Z$50 billion is now set at Z$50 million, says Morgan, who explains it has caused confusion with all accounting software installations in Zimbabwe.

"The problem is you cannot just take three zeros off the set of accounts without causing implications." He adds many clients are halfway through their financial years and need to revalue their accounts to ensure the integrity of their financial statements.

The company is using Microsoft SQL scripts to perform the changes and has developed routines that will run through the databases (debtors, creditors, work in progress and general ledger) and change the transaction by taking off the last three digits and revaluing the transactions.

Morgan says the company flew a senior software developer into Harare yesterday to programme the new routines into the accountants` databases. The first client will be Deloitte, followed by KPMG and PWC.

Morgan notes accounting firms were caught off guard with the dollar rebasement and did not have sufficient time to adopt software that accommodates the changes.

Morgan adds that something similar happened in Mozambique six months ago, but there was at least warning from government, which allowed the company to develop software before the change.

GreatSoft has developed software for many accounting firms in Africa over the past 10 years, but has never had an obstacle as big as Zimbabwe`s currency digit changes, he adds.