Contact
BEE

Management accounts still OK for BEE verifications?

“My manufacturing business has been growing steadily and I expect it will go above the R50 million turnover mark this financial year. That said, its not a given, and I’m hesitant to spend on BEE planning before I’m sure we will go over this mark. Will I be able to first wrap up the financial year and thereafter do the necessary BEE expenditure and verify the business using management accounts for the first quarter after the financial year-end?”

In August 2020, the South African National Accreditation System (SANAS) issued a communication to B-BBEE verification agencies that measured entities shall not be permitted to conduct a B-BBEE audit using management accounts outside of their financial period. SANAS also encourages the use of financial statements rather than management accounts. 

However, given that a company’s financial audit may only be completed some time after their financial year-end and there could be urgency in obtaining a BEE certificate, a company would be allowed to use management accounts for the same period as their financial year for purposes of undergoing a BEE verification. 

So, to answer your question. You will not be allowed to verify using management accounts that fall in the period after your financial year. If a verification agency does allow this, which would be highly unlikely, you run the risk that should SANAS pick up this non-compliance, your BEE certificate could be cancelled.

Our advice is to rather conduct proper BEE planning now, an exercise that should in any event be conducted well in advance of your financial year-end, and in that planning evaluate the various scenarios for if your turnover fails to exceed/does exceed the R50 million turnover mark. With some careful planning and with the help of your BEE consultant you should be able to prepare for both scenarios and not run the risk of a poor BEE certificate due to inadequate planning.

September 14, 2021
Trustee administrative duties under the spotlight

Trustee administrative duties under the spotlight

by | Sep 3, 2024 | , , , , ,

With new reporting obligations on trustees and SARS intensifying its submission requirements in respect of trust tax returns, no trustee can afford to ignore the administrative duties imposed upon them in terms of common law and statutory law. In this article, we briefly list some of the main administrative duties falling to any trustee.

Don’t gamble with banking details via email

Don’t gamble with banking details via email

by | Sep 3, 2024 | , , ,

Electronic invoices and banking details received via email are commonplace. Do you confirm banking details by telephone? Do you double-check for changed account details? Are you wary of suspicious activity? For many, ignorance is bliss, with invoice and banking details taken at face value and payment made without thought to the potential cybercriminal lurking in the shadows. If this is you, read on about the dire consequences that could follow from such ignorance.

The implications of a waiver of rights by directors

The implications of a waiver of rights by directors

by | Sep 2, 2024 | , ,

The Supreme Court of Appeal (“SCA”) recently handed down a judgement in what has been cited as a ‘landmark case’ in respect of the waiver of directors’ rights and the impact of such waiver on a company. In this article, we look at what a ‘waiver’ of rights in terms of a contract entails and what the effect of such a waiver by directors may have on a company, specifically concerning debts owed to the company.

Sign up to our newsletter

Pin It on Pinterest