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) QSECost/Point (R) Generic
100,00011,00040200
1,000,000110,0004002,000
2,000,000120,0008004,000
4,000,000140,0001,6008,000
5,000,000150,0002,00010,000

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

 

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