News on the Block Guide 2021
for a smoother process and reduces the risk of delays and misunderstandings. If you don’t have an established relationship with any accountants it’s worth talking to firms you are considering using to ask them how they work, what information they need, what format the records will be provided in, what their normal turnaround times are like etc. It’s also worth reviewing the accountants’ website to see what that says about the firms approach and values as this may give an insight into whether they are the kind of people you would feel comfortable dealing with.
Value for money
Employing an accountant should be subject to the same consideration as any other contractor or professional. It’s likely the cost of year end accoun ts preparation will be recoverable under a lease, either as a specifically allowed item of expenditure or from a combination of other clauses. If there is any doubt about that, consideration should be given to how the cost could be recovered, perhaps being built into the management fee if the wording of the lease allows. It’s also worth considering the level of the fee. As with other costs, it is not essential to choose the cheapest of all available options, but all service charge costs must be reasonable, so making sure the chosen accountant provides a service that justifies their fee is essential. Choosing the right accountant can help ensure the service charges are reported in a clear and timely fashion, at a reasonable cost to leaseholders and in an appropriate timeframe and format. Such an accountant could also provide other support and services if required as well as reassurance that if the costs in the accounts are ever challenged there is the best chance of explaining and justifying them. The right service charge accountant can be a trusted partner and adviser as well as a contractor providing accounting services and help the service charge process run more smoothly and with much less cause for disputes.
If you have any questions about the above please feel free to contact Tim Lunt on tlunt@wrpartners.co.uk. Tim is a fellow of the Association of Chartered Certified Accountants and a member of the Institute of Residential Property Managers and leads the specialist service charge accounts team at WR Partners. WR Partners are a firm of chartered accountants and business advisors who are ARMA partners, registered auditors and members of the UK200 Group - the UK’s leading professional services group of independent quality assured chartered accountancy and law firms.
This guide is in partnership with WR Partners
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