Student Unions occupy a unique position within the higher education sector. Similar in some ways to Trade Unions, they function as separate legal entities dedicated to representing the student body of a university. However, their operational requirements extend beyond representation. They commonly manage commercial operations such as bars and cafes and oversee a diverse range of student activities through sports clubs, societies, and other groups. Approximately 600 student unions are affiliated with the National Union of Students, which accounts for more than 95% of all higher and further education unions in the UK.
To appreciate the specific accounting needs of Student Unions, it’s important to understand their structure. While larger unions might have a Chief Operating Officer, most will have a Head of Finance responsible for researching and recommending financial technology. Key financial decisions are usually vetted by the Chief Executive Officer and then presented to the Board or Audit and Risk Committee for approval.
It’s worth noting that Student Unions generally operate with lower budgets and face greater challenges in recruiting and retaining high-quality staff compared to Trade Unions. They may also experience organisational challenges where departments work in a more siloed fashion.
Funding for Student Unions primarily comes from the University itself, based on the Union’s ability to demonstrate sound management and contribute to a positive student experience. A well-run Union enhances the University’s reputation and attractiveness to prospective students. Additional income is generated from the commercial sites and also from student membership fees for sports clubs. It’s important to recognise that the treatment of income from sports clubs can vary; depending on the Student Union’s policy, it may be classified as Union income or held on behalf of the club. Income from other clubs and societies, such as ticket sales and merchandise revenue, is typically held on their behalf and allocated for student activities.
These characteristics result in three main accounting functions for Student Unions:
Internal Corporate Departments – these departments operate similarly to those in any organisation, with budgets and specific project funding that need to be carefully tracked and managed. While Student Unions may not typically work with Purchase Order (PO) systems due to cost and poor engagement, they still require purchase approval processes, usually managed on an invoice basis.
Clubs, Societies, and Sports Clubs – transactions related to these groups, often managed through a Student Engagement System (SES) like MSL, require meticulous tracking. Revenue from ticket sales or merchandise needs to be held and allocated appropriately for the clubs’ and societies’ activities. Automation can be extremely helpful for providing a real-time view of funds held on behalf of these groups.
Commercial Services – retail and hospitality sites present specific accounting challenges. Integrating Electronic Point of Sale, rota management, and stock control systems with the core finance system is essential for maximising profitability. Automated data integration saves time, reduces errors and enables finance teams to focus on data accuracy.
Given the requirements we’ve discussed, accounting software for Student Unions may need to offer the following:
Student Unions require accounting software that can accommodate their multifaceted nature and operational demands. The ability to manage various income streams, integrate with specialist systems and provide robust reporting is essential for ensuring financial stability and supporting the Union’s core mission of representing and serving students.
4Pointzero supports many Student Unions to manage their financial operations. We recognise the sector-specific challenges and offer expertise in implementing accounting solutions. To explore how 4Pointzero can assist your Student Union’s financial management, please visit our Not-For_Profit Page.