Having several group companies set up in a single Sun Accounts Business unit can be the starting point
for driving efficiencies. Using Sun Accounts, “Business Unit” is the term for a separate database of reference
and transactional data.
Initially, when companies with individual finance departments join together
in a Group, setting up a single SunAccounts Business Unit is likely to be the most effective strategy. This is especially
the case where there are common suppliers.
There are many benefits to this approach.
most obvious one arises where several of the group companies share suppliers. When a supplier makes an enquiry, the purchase
ledger team can go the supplier’s account and see all transactions across the group, rather than having to change to
different legal entities to see other transactions. Payments to the suppliers can be carried out separately by each group
company or optionally from a single group bank account.
As there is only one business unit, there
is a single period end for all the companies represented in the ledger. SunAccounts is a single ledger system containing all
sales, purchase, cash and other transactions.
As there is only one business unit, there is only
one chart of accounts, so no coordination of changes is required, nor conflicts in code usage can arise.
legal entity is represented by one of the analysis codes attached to every transaction. Balancing by the entity code is enforced.
Reporting on a single entity is straightforward, as it is across several entities simultaneously.
approach facilitates the centralising of finance departments, although remote access over the web from other locations or
even on the move is a standard aspect of SunAccounts.
When the time comes to rationalise the legal
entities in the group, the changes in processing are few, minimising disruption.
I have considerable
experience of helping groups to drive cost savings by setting up SunAccounts in this efficient way.