Service charge accounts, prepared properly
Accounts are prepared to the ACCA TECH 03/11 format, with fixed fees from £495 a year.
What a compliant set contains
Every statutory schedule prepared in full alignment with ACCA Tech 03/11 and RICS service charge codes.
Shows money collected and spent during the year.
Opening and closing balances for each account.
Identifies funds set aside for future major works.
Shows how actual spending compared to the approved budget.
Explains any significant differences between budget and actual.
Need past years regularised?
We verify opening balances, reconstruct schedules, and deliver clean, certified year-end sets for freeholders and RMC directors.
Service charge money is trust money
Service charge funds are held on trust for leaseholders under the lease and must be kept outside the management company's or agent's own operating accounts. Commingling service charge and operating funds causes reconciliation problems, disputes with leaseholders, and difficulties at audit or when a managing agent changes.
Proper separation ensures clarity, accountability, and compliance with lease obligations. It protects both the leaseholders and the managing agent.
Statutory ring-fencing
Funds belong to leaseholders and must sit in designated client trust accounts, never mixed with operating reserves.
Dispute avoidance
Clear isolation prevents reconciliation delays, leaseholder challenges, and scrutiny during annual audits.
Agent & freeholder protection
Documented separation safeguards directors, facilitates agent handovers, and meets Section 42 requirements.
Accruals or receipts
The accounting basis—whether service charge accounts are prepared on an accruals basis (expenses recorded when incurred, income when earned) or receipts and payments basis (only recording cash movements)—matters significantly for accuracy and lease compliance. Accruals accounting provides a truer picture of the block's financial position and is often required by leases or professional standards. Abel Accountants decides the correct basis for each block based on the lease terms, the block's size, and its complexity.
Industry standard & recommended for compliance
Expenses are recorded when incurred and income is recorded when billed or earned, regardless of when cash changes hands.
Key characteristics
- Delivers a true view of debtors, creditors, and liabilities
- Required by the majority of residential long leases
- Mandated by RICS Service Charge Residential Management Code
- Prevents misleading surplus or deficit balances across year-ends
Simple cash accounting for small, basic arrangements
Only actual cash transactions that cleared the bank account during the financial year are recognized.
Key characteristics
- Straightforward tracking of real-time cash flow in and out
- Only permissible if specifically authorized by the lease
- Excludes unpaid invoices, prepayments, and accrued charges
- Typically suited only to very small blocks with no complex contracts
How we determine the correct method
Every appointment starts with an audit of your lease documents and block operational profile. We never apply a one-size-fits-all approach.
Lease terms & covenants
We verify what your lease prescribes. Many require accounts prepared in accordance with professional accounting guidelines.
Block scale & complexity
Major works reserves, multi-schedule apportionments, and ongoing utility accruals demand complete accruals tracking.
Statutory & RICS standards
ACCA Tech 09/12 and RICS guidelines stipulate accruals accounting for all standard statutory service charge certifications.
Unsure if your existing service charge accounts follow the required basis?
What we usually find on takeover
Neutral review findings across inherited service charge ledgers. Identified systematically to bring schemes back into full compliance with lease covenants and ACCA guidelines.
Reserve funds not separately identified
Previous accounts show service charge expenditure but do not isolate or clearly label reserve fund contributions and balances, making it unclear what is committed versus available for distribution.
Statutory ring-fencing with dedicated reserve fund balance reconciliation.
Budget comparatives missing or incomplete
Actual expenditure is shown but not compared to the approved budget, leaving questions about why spending varied.
Line-by-line comparative schedules against the original signed leaseholder budget.
Service charge and company funds commingled
Bank accounts or ledgers mix service charge money with managing agent or company operating funds, creating reconciliation headaches and lease breaches.
Designated statutory trust bank accounts under Section 42 of the Landlord and Tenant Act 1987.
Variance notes informal or missing
Explanations of significant variances between budget and actual are absent or buried in informal notes, leaving leaseholders confused.
Structured explanatory variance notes for material deviations over agreed thresholds.
Incorrect accounting basis applied
Accounts are prepared on receipts and payments when the lease requires accruals, or vice versa, resulting in non-compliance.
Formal lease clause audit to align reporting directly with mandatory accounting covenants.
Ready to review your scheme's existing accounts?
We carry out independent pre-takeover reviews for freeholder boards and RMC directors.
What we need from you
Gather these five items before we begin. Having them ready ensures your certification proceeds without delays.
All service charge bank account statements covering the period.
All invoices and receipts for payments made during the year.
The approved budget for the year.
A copy of the lease.
The prior year's service charge accounts (or trial balance if new block).
Unsure about any specific document?
Speak directly with our team to confirm alternative records.
Fixed fees by block size, plus VAT per year
Clear, upfront professional fee schedules for residential landlords, block managers, and right-to-manage companies.
Included coverage
- Annual service charge certificate
- full statutory reconciliation
- direct director liaison
Included coverage
- Full service charge accounts
- bank reconciliation
- trial balance review
- written certificate
Included coverage
- Comprehensive certification
- detailed expenditure scrutiny
- lessee queries support
Included coverage
- Institutional-scale certification
- complex apportionment review
- dedicated partner point of contact
The fee is agreed in writing before work starts.
Turnaround
Accounts are delivered within 10 working days of receiving complete records.
Clear answers to common questions
Everything you need to know about our timelines, standards, and onboarding process.
Have a specific question about your accounts?
Our chartered accountants are ready to discuss your requirements.
Fixed-Fee Accounting
Get a fixed quote for your block.
Tell us about your property and we will send a detailed, fixed proposal within 24 hours.