Is There Such a Thing as Too Many Sub-Accounts?

While there are quite a few different organizational hierarchy types, classic sub account placement does not have to indicate a level in a hierarchy. It is all about your business needs and what structure is meaningful to you. One of the recommendations we go by is to use sub account creation for department or division segmentation.Segmenting accounts based on departments or divisions is a strategic approach that promotes focused management and budgeting within each functional area. Here are some tips and tricks for effectively implementing this division:

1. Clear Departmental Definitions:
   • Define each department or division’s scope, responsibilities, and objectives clearly (e.g., Sales, Install, Distribution divisions). This ensures that everyone understands their role within the organization.
2. Resource Optimisation:
   • Tailor resource allocation to meet the specific needs of each department. For example, allocate more equipment and personnel to the construction department during active project phases via sharing and/or transferring assets to the right account.
3. Performance Tracking by Department:
   • Establish key performance indicators (KPIs) that are relevant to each department’s functions (e.g. x number of assets leaving service points ready for rent). This provides a clear measure of departmental performance and helps identify areas for improvement.
4. Task and Project Assignment:
   • Assign tasks and projects based on departmental expertise and capabilities. This ensures that each department is working on projects that align with their strengths and responsibilities (division by construction project A and .

By implementing department or division segmentation, you create a structured framework that allows for specialised management, focused budgeting, and streamlined operations within each functional area. Thus, there can never be too many sub accounts, there can only be misplaced ones. General rule of thumb - start with three sub account levels. Additional levels will slowly increase administrative overhead. If a different division is required, look into creating groups or sites within the accounts.