B-BBEE advisory and structuring firm BeeSure Consulting has launched a free gross-to-net snapshot for South African companies. Any business can e-mail its current B-BBEE certificate to the firm and receive back a single page showing two numbers most boards have never seen together: what the level earns with customers, and what the programme behind it should cost once tax relief and incentives are claimed.
The firm says the gap between those two numbers is where most of the resentment sits. "B-BBEE is resented for three reasons," says director Stefan Nieuwoudt. "The spend never visibly comes back, the administration lands on people with full-time jobs, and the level arrives as a surprise. All three are design faults, and design faults can be engineered out."
On the cost side, the numbers are specific. A registered learnership carries a tax allowance worth roughly R21 600 in tax cash per learner in BeeSure's models, and deductible spend returns 27 cents in every rand at the current corporate tax rate. Timed to the dates a business already pays tax, the relief lands during the year and funds the programme while it runs.
The level works like an exchange rate applied to every invoice. The identical quote converts into more or less value for the buyer depending on where the supplier sits.
On the revenue side, the codes attach a rate to every level. Each rand a customer spends with a supplier is recognised on the customer's own scorecard at the supplier's rate: 135% of its value at level one, 100% at level four and only 10% at level eight. "The level works like an exchange rate applied to every invoice," says Nieuwoudt. "The identical quote converts into more or less value for the buyer depending on where the supplier sits, so large buyers quietly move spend towards the better rate. Companies lose deals nobody ever tells them about."
"The snapshot puts the commercial value of the level and the true net cost of earning it on one page," he adds. "After that, the right conversation is easy to have. We commit the level we can defend, then beat it."
The firm suggests HR teams run one check alongside the snapshot: confirm when the measurement period ends, and ask finance whether budgeted training can still become registered learnerships before that date.
Sign up
Sign up for the free gross-to-net snapshot by e-mailing your current B-BBEE certificate to rachell@beesureconsulting.co.za. BeeSure returns one page, with no meeting and no obligation. Phone (084) 637 2006 or visit www.beesureconsulting.co.za.
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