Accounting Best Practices

WBE
A Woman’s Prerogative
By Tatiana Gilbertson
Published: January / February 2009

Over the past few decades, the amount of women-owned businesses has increased at a rate of more than four times the national average. It is mostly because of the changes in women’s educational and career achievements. This change started in the 1960’s when women began to prepare themselves for a career rather than a job. The trend continues today as many more women are surpassing men in educational achievements. Through education and experience, women have gained the confidence to bring their visions to fruition and open their own businesses.

Here are a few key statistics that, as of 2008, related to women-owned businesses:

• 7.2 million businesses are majority-owned by women (51% or more)

• They employ more than 7.3 million people and generate $1.1 trillion in sales

• One in five businesses with revenues of $1 million or more is women-owned

Now that we have established that women-owned businesses are a large and growing part of our economy, let’s talk about one of the advantages of being a woman entrepreneur. In 1988, the Women’s Business Ownership Act was enacted to initiate efforts to assist the development of small businesses owned and controlled by women. This means that if you are a woman and want to own a business, you are at an advantage. The government has recognized the need for diversity and wants to help you succeed! The act states that, “All Federal departments and agencies are required to take appropriate action to facilitate, preserve and strengthen women’s business enterprise and to ensure full participation by women in the free enterprise system.” In order to take advantage of this wonderful opportunity, you need to have a Woman Business Enterprise (WBE) certification.

The WBE certification is like a seal of approval which states that your business is, in fact, owned by a woman. Most government agencies will recognize the WBE certification. If you wish to do business with your state or local government, it is recommended that you educate yourself about the specific types of certifications they may require. First, they want to make sure that people are not cheating the system by, for example, having businesses portray that the owner’s wife is the owner in title when, in fact, she really has no interest or control over the company. Some private sector businesses also recognize the WBE certification for various reasons, including their business dealings with government agencies. Therefore, it is recommended that you get a certification through a third party organization such as the National Women Business Owners Corporation. Then you need to get your business name on the list of vendors from which these companies are hiring. Purchasing agents will look to see if you have that certification before doing business with you, as many of these programs are set up to track the amount of certified women-owned businesses they use.

Any company owned at least 51% by a woman or women can apply for the certification. Another condition that needs to be met is control. A woman has control of the business if she is the ultimate decision-maker of the company when it comes to all aspects of the business, or if she has delegated (or has the authority to delegate) all of those responsibilities to another partial owner or manager of the company. If you meet those requirements, you are eligible to apply for your WBE certification. When you obtain your certification it adds credibility to your company.

Obtaining your certification is as simple as applying if you meet all the criteria. If you do meet all criteria, there is no reason not to partake of all these preferential treats. The application requires comprehensive information to be provided by the owner, as well as copies of important business documents such as articles of incorporation, minutes, financials, etc. After the application has been completed and all attachments are in place, it is reviewed by the agency and an interview is scheduled. An agent will visit your place of business to confirm that all is as stated.

It should not be assumed that any job you desire will be yours just because you meet all the requirements. Different jobs have further specifications, such as number of employees, years in the industry, and residency. And even then, just having the certification is not a guarantee you will get the jobs. It does, though, put you on a database from which government and private agencies will select businesses to whom to offer jobs. And, just as with everyday marketing, you will need to market to these agencies in order to increase your chances and get your name recognized.

Tatiana Gilbertson is a member of the Tax team at Kingery & Crouse. A graduate of the University of South Florida with an MBA degree, she has previously worked on the Audit team. Tatiana speaks English, Spanish & German fluently. Kingery & Crouse, P.A. is a full service public accounting firm with a staff of dedicated professionals providing tax and accounting services, including audits of SEC companies. You may contact Tatiana at (813) 874-1280 ext #228. Find us on the web @ www.tampacpa.com.

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