Calculate how much are you losing with out Self Assessment
Original publish date – Wed, 11 Nov 2009 12:40:17 +0000, MPUMULO MAPHOSA
We have always stressed on the importance of doing self-assessment before going for verification. This is something that cannot be emphasized more. It is a purposive process relying on assessing and analyzing the existing situation for a measured entity and reporting thereof. The reason for doing self-assessment is to ensure that every point is accounted for in its entirety. Depending on the size of your company, earning one point can translate to a certain amount of money. Without doing self-assessment, you stand to lose a couple of points which in reality means you would have lost an X amount of money.
Let’s do the numbers game on Socio-Economic Development, both for a Qualifying Small Enterprise and a Generic Company.
| Net profit After Tax (R) | Target (%) | Target (R) | Cost/Point (R) QSE | Cost/Point (R) Generic |
| 100,000 | 1 | 1,000 | 40 | 200 |
| 1,000,000 | 1 | 10,000 | 400 | 2,000 |
| 2,000,000 | 1 | 20,000 | 800 | 4,000 |
| 4,000,000 | 1 | 40,000 | 1,600 | 8,000 |
| 5,000,000 | 1 | 50,000 | 2,000 | 10,000 |
As shown in the table above, it costs a certain amount of money to earn just a point under SED. Question is, how many points or how much money are you losing because you haven’t done introspection? A great deal of money is lost without a comprehensive approach to self-assessment yet more often than not, we have realized that companies pull away from looking inside. As a remedy to this constantly overlooked drawback, we have online, a software to guide you throughout the process. For the Demo version, please click here http://econobee.co.za/dmdocuments/econobeev3/econobeev3%20presentation.htm
In all fairness, self-assessment is just one the many other stages of BBBEE compliance. It is equally as important as the rest. BBBEE compliance should be seen as a process not a once-off event. We recommend companies to follow our 10-step process in becoming BBBEE compliant. Visit the following link for the 10 steps: http://www.econobee.co.za/general/become-bee-compliant/10-steps-to-bee-compliance.html