BEE laws have changed yet again. It is an ongoing process which develops the country’s business sector which is why it is continuously being updated. Companies need to be aware of these changes and take measures to correctly adhere to these amendments. Black economic empowerment was brought about to lessen the financial gap between the different races of people in South Africa.
It is an ongoing process with laws that are ever changing. This is where BEE consulting firms come in. Firstly, their job is to study the company and ensure that they have the right tools to become BEE accredited. The second aspect of their job is to implement strategies within the company to bring their BEE rating as high as possible.
BEE is a complicated and drawn out process that cannot be understood just by studying it. Expertise in the field also comes with a massive amount of practicality which is what BEE consulting firms offer to their clients. Hiring a BEE consulting firm is priced per hour. They would only require for a few hours to get some knowledge behind the company before getting to work and laying out the foundations for which the BEE accreditation will be based. This means that small businesses will not have to burden the cost of bringing in a full time staff member to oversee the companies adherence to amended BEE policies.
Businesses are only verified once a year but strategies need to be an ongoing thing for the rating. So BEE consulting firms help twofold in terms of black economic empowerment. It is in the codes itself where changes are made to the law. The 5 factors in BEE accreditation are Ownership, Management, Skills development, Supplier Development and Social development. Tax, for example, is a major component in the skills development sector.
It means a lot of research to bring in the right people for learnership, in order to score points in this code. It is the points which will ultimately determine the rating of the company. BEE consulting firms will assist in this regard and ensure that the company scores high. One of the newer BEE laws to come into effect made it for micro enterprises to be exempt from these new amendments. Such companies would get a straight level 4 status. Without the guidance of a BEE consulting firm, most businesses will not have the guidance to move further in this rating.
The BEE rating goes up to status 8. The higher the points, the better the chance of the business being awarded tenders or closing a deal with another business. It is important to note that this automatic accreditation does not apply to large businesses. These businesses can take advantage of BEE consulting to initially get accredited and for the coming years to financially reap the rewards that comes with it. They will also keep the business in the loop when changes are made to the BEE law and save them the trouble of adjusting their affairs.