How to prepare for your B-BBEE Verification.

B-BBEE Verification: How to prepare for B-BBEE Verification

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Regardless of whether your company is a Start-up Enterprise, a Private Company, or a Close Corporation, Listed or Unlisted, operating in South Africa has changed drastically in the past years irrespective of the industry and/or sector you are trading in.

Within this ever-changing environment, the regulatory requirements your company is required to adhere to as well as the terms and conditions of your company’s suppliers and/or clients need to be met to maintain and/or procure new business, all ultimately result in tedious, labour-intensive administration and having to comply with B-BBEE is just the cherry on top.

 

Be that as it may, B-BBEE in itself is a controversial topic. With the gazetted Codes, Sector Codes, and related legislation being overly complex, yet vague in terms of explaining key definitions, the respective interpretation, and/or methodology thereof and without providing proper sound examples for practical application in the workplace, it is understandable to be confused and overwhelmed merely by the thought of preparing for your B-BBEE Verification.

To simplify and to assist with your action plan in preparing for your B-BBEE Verification (albeit current and/or for future reference), one must first focus on the following:

 

  1. Your current B-BBEE Certificate:

It is essential to know exactly when your current B-BBEE Certificate will expire as this date has a direct impact on your business, profitability, and future success. Operating or trading without having a valid B-BBEE Certificate is difficult and for most companies, not even an option therefore planning and preparing for your current as well as future B-BBEE Verification, should be an ongoing process, attended to on a regular basis.

B-BBEE Verifications are all based on your company’s official 12-month financial period and as such, incorporating a timeline into your action plan with clearly defined tasks, objectives, and milestones is strongly recommended.

 

  1. The applicable Codes or Sector Codes and scorecard:

The importance of determining the applicable Codes or Sector Codes as well as the scorecard on which your company’s B-BBEE Verification will be based, may seem obvious however the concept of B-BBEE is everchanging. New Sector Codes are gazetted frequently, changes to legislation often have a direct impact on B-BBEE, and how the applicable Codes or Sector Codes should be interpreted with the specific applied methodology of your B-BBEE Verification Agency, are all subject to change.

As such, keeping in contact with your selected B-BBEE Verification Agency regularly is essential for your preparation and crucial in maintaining and/or increasing your overall B-BBEE level.

 

  1. Document Management:

It is standard business practice to keep records of anything and everything pertaining to your business, however, the manner in which this is done is the most important. The use of a computer system and software to store, manage, and track electronic documents and electronic images of paper-based information captured through the use of a document scanner, is without a doubt the most invaluable tool to have and is also friendly to the environment.

Adopting and/or incorporating a system to assist with your company’s recordkeeping will ensure that any and every supporting document is readily available without any hassle of retrieving hard copies from archives, whilst saving you precious time to focus on the more important matters at hand.

 

For more information and assistance with your current or upcoming B-BBEE verification, kindly contact your regional LabourNet office.

 

More To Explore

What the B-BBEE verification period refers to?
B-BBEE

What the verification period refers to?

To simplify, the verification or measured period refers to your company’s official 12-month financial period.   However previously in practice, companies were allowed to get B-BBEE verified on any financial