BEE Scorecard Rating BEE Verification| BEE Verification - I Want My Company BEE Rated? |
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One of the common and confusing BBBEE questions that most clients often ask is that they want their company rated or verified. We have prepared an easy to follow guide that will take you through the entire BEE Scorecard process.
B-BBEE ScorecardWhat is the BEE Scorecard and do I need to comply?The scorecard is a tool designed to measure your BEE compliance status and is based on 7 elements (see table below). Each element is measured based on a points scoring system. The complexity of the scorecard is determined by the turnover/revenue of a company. The smallest companies - EME (Exempt Micro Enterprise), are exempt from all forms of BEE compliance. Their annual turnover is less than R5 million. They are automatically allocated a good BEE score that is level 4, or level 3 if they are black owned. Small companies - QSE (Qualifying Small Enterprise), is an enterprise with an annual turnover of between R5 million and R35 million. They will need to prepare a BEE Scorecard, but can choose the 4 best elements out of the 7 elements. The large, Generic companies with an annual turnover above R35 million will need to comply with all 7 elements of broad based black economic empowerment.
The First PhaseThe first phase of BEE is education - you need to learn what BEE is and how it works in order to make the right business decisions. Get to understand BEE so you will make the correct - and profitable decisions. The Second PhaseThe second phase is calculating your first BEE scorecard then setting yourself targets and formulating strategies that will help you reach your targets. You will need to identify where you are in the BEE process. We often say "You are more BEE compliant than you realise". The Third PhaseThe third phase is producing an accurate internal BEE Scorecard. If your score is low, work towards increasing it in line with your strategy. By creating a scorecard you will have a good grounding with which to build on and will know exactly how many points you should earn when you go for verification. The Fourth PhaseThe fourth and last phase is the final BEE Verification. BBBEE Verification or RatingYou don't get a scorecard from a verification agency you get your existing scorecard verified!Verification is the last step after you have produced your scorecard and worked on getting points. The purpose of verification is to ensure that the score you believe you have is correct. A BEE Verification Agency "audits" and "certifies" that the points you have earned is based on documentary evidence. You need good points - not just a certificate
A company gets on the "scoreboard" when they have more than 30 points. Secondly and more importantly you should aim to get more points than your competitors. Remember you need a scorecard because your customers want one, therefore the more appealing your score to your customers the more likely you are to get the business.
Verification is just but a stamping process on your efforts! More about Verification The key to BEE is the scorecard - unlocking the scorecard requires points. Smart businesses recognize that earning or losing their BEE points should not be by chance. As much as they might want it, a company can unfortunately not ask someone to come in and give them a rating - they have to work towards building up the scorecard. Identify those business activities that earn points, calculate how many the points the company has earned throughout the entire year. Identify strategies to increase and optimize those points. However, in the end, the points you earn are a reflection of the company's own activities and decisions.
Before your verification ask yourself - How much does a bad verification cost you and how much is an extra point or extra level worth? Keep your scorecard at the top of your mind, know what goes into it and it will increase.
Preparing for your verification primarilly takes the form of BEE scorecard along with a file containing all the documented proof you need to prove your scorecard is correct. By preparing early for your verification you will save time and money in getting that verification produced and you won't be surprised by a scorecard that is lower than you expected The DTI has issued The Verification Agency guidelines which explains exactly how a Verification Agency should operate, and how they will go about verifying your score. If you do not know how best to approach your Verification Agency, you may end up being very unhappy The Verification Guidelines in simple terms is an audit manual. In effect a verification agency will follow the same principles when verifying your BEE scorecard as your auditor does to your accounts Many companies spend weeks and even months trying to get a verification. In reality verification should take no longer than 1-2 days - if you are prepared How does EconoBEE fit into BEE Verification? We are not a verification agency, we are a consultancy that specialises in Broad Based BEE. We focus on the practical side of BEE. We treat a BEE Verification as a long term process, not a single event that happens once a year. It is our job to provide Education, Profiles and Strategies, assist with a BEE Scorecard Rating, implement BEE, optimize your points and give you BEE Confidence. Producing your scorecard and preparing for verification can be made easy by following the EconoBEE Way. EconoBEE Educational Training Sessions Attend one of our weekly half-day BEE workshops, full day BEE Seminars or a variety of practical, informative BEE conferences, seminars, workshops and more to prepare you for the important journey towards BEE compliance. EconoBEE V3 scorecard software Prepare a BEE self assessed scorecard in no time at all. EconoBEE V3 Helps you approach the verification agency armed with a scorecard. With EconoBEE V3 the process is as easy as 1, 2, 3.. What if your annual turnover is less than R5 million? Your business is exempted from producing a BEE scorecard. To save you time EconoBEE can design a set of documents that states your Exemption status, and assists you in getting this message across to your customers Require more intense and regular help? Large companies will require additional time with a consultant. We have an effective approach to this through our advanced record keeping system. Consulting on all aspects of BEE can be arranged BEE Verification If you are ready for your BEE Verification we can assist you find a BEE Verification that will provide you with a verified Broad Based Black Economic Empowerment Certificate proving your BEE level of compliance. EconoBEE is not a verification agency but has formed a relationship with various verification agencies around the country. We are also available to support you during your verification process. This will ensure you earn all the points you deserve. It will also ensure that your scorecard is completed correctly saving you time prior to your verification. |
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| Last Updated ( Friday, 05 June 2009 16:39 ) |
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