(And Why Compliance Alone Isn’t Enough)

Most property company directors don’t change accountants because of fees.

They change because of frustration.

It usually sounds like this:

“They file everything… but I still don’t really understand what’s going on.”

“I only hear from them once a year.”

“I didn’t expect that tax bill.”

“I assumed they’d warn me if there was a problem.”

Here’s the reality:

Many accountants do exactly what they’re engaged to do — and nothing more.

They prepare the accounts.

They submit the corporation tax return.

They file with Companies House.

They meet deadlines.

That’s compliance.

But for property limited companies, compliance alone is not enough.

In this blog, we’ll explain:

• What compliance accounting actually covers
  
• Why property companies need more than that
  
• What a proactive accountant should be doing differently
  
• And how better advice changes both your results and your stress levels
  

The Issue Isn’t “Bad Accountants” — It’s the Wrong Level of Service

Let’s be fair.

Most accountants are technically competent.

The problem is that many property directors are still on a service model designed for:

• Simple trading companies
  
• Straightforward income streams
  
• Minimal asset ownership
  
• Low borrowing complexity
  

Property companies do not fit that mould.

Mortgages.

Refinancing.

Capital repayments.

Director funding.

Dividend timing.

Tax planning around acquisitions.

If your accountant treats your property company like a small retail business, issues won’t show immediately — but they will surface eventually.

What Compliance Accounting Actually Covers

A basic compliance package usually includes:

• Annual statutory accounts
  
• Corporation tax return
  
• Companies House filings
  
• Possibly your personal tax return
  

This work is essential. It keeps you compliant and avoids penalties.

But it is also:

• Backward-looking
  
• Historic
  
• Reactive
  

Compliance tells you what has already happened.

It does not tell you what’s about to cause a problem.

And in property, timing is everything.

Why Property Limited Companies Need More Than Compliance

Property businesses face financial pressures that don’t always show clearly in year-end accounts, including:

• Cashflow strain from mortgage payments
  
• The difference between capital repayments and accounting profit
  
• Director’s loan account exposure
  
• Dividend affordability issues
  
• Corporation tax timing
  
• Refinancing implications
  
• Portfolio restructuring decisions
  

If these are only reviewed after the year has closed, your options are often limited.

This is why so many property directors feel blindsided — even when they’ve done nothing reckless or wrong.

What a Good Accountant Should Be Doing (But Often Isn’t)

A strong property accountant doesn’t just report numbers.

They interpret them.

They challenge decisions.

They plan ahead.

Here’s what that looks like in practice.

1. Explaining the Numbers Clearly

You don’t need jargon.

You need answers to questions like:

• “How much can I safely take from the company?”
  
• “Why is my profit high but my bank balance tight?”
  
• “What tax is coming — and when?”
  
• “What could become an issue next year?”
  

A good accountant translates figures into decisions.

If you leave meetings feeling more confused than when you arrived, the service isn’t working.

2. Reviewing Director Pay During the Year

Director salary and dividends should never be a once-a-year afterthought.

A proactive accountant will:

• Review drawings during the year
  
• Check dividend affordability
  
• Flag personal tax exposure early
  
• Align withdrawals with cashflow
  

They don’t wait until year end to say:

“You probably shouldn’t have taken that.”

3. Monitoring Director’s Loan Accounts Proactively

Director’s Loan Accounts rarely explode overnight.

They creep up quietly.

A proactive accountant will:

• Review loan balances regularly
  
• Warn when withdrawals are becoming risky
  
• Clearly explain Section 455 tax implications
  
• Help plan repayments or restructuring
  

Silence here can become expensive very quickly.

4. Focusing on Cashflow — Not Just Profit

Property companies rarely fail because they’re unprofitable.

They fail because they run out of cash.

A good accountant will:

• Highlight pressure points early
  
• Separate accounting profit from real liquidity
  
• Forecast tax liabilities
  
• Consider mortgage and refinancing impact
  

This becomes even more critical as portfolios grow.

5. Planning Tax Before the Bill Arrives

One of the most common frustrations we hear from property directors is:

“I didn’t realise the tax would be that much.”

That should not happen.

A proactive accountant:

• Estimates corporation tax during the year
  
• Encourages funds to be set aside
  
• Explains how acquisitions and refinancing affect tax
  
• Removes surprises
  

Tax planning isn’t avoidance.

It’s preparation.

6. Supporting Growth Decisions — Before They’re Made

Property companies evolve:

• New purchases
  
• SPV structures
  
• Refinancing
  
• Portfolio incorporation
  
• Changes in funding models
  

A good accountant advises before decisions are locked in.

They:

• Explain consequences clearly
  
• Help structure funding properly
  
• Support lender requirements
  
• Identify risks early
  

Waiting until after completion often means fewer options — and higher costs.

Why Many Property Directors Stay Too Long With the Wrong Setup

Most directors don’t leave because of one dramatic failure.

They stay because:

• “It’s probably fine.”
  
• “I don’t want the hassle of switching.”
  
• “They’ve always done it this way.”
  
• “I’m not sure what I should expect anyway.”
  

But over time, small gaps create:

• Repeated tax surprises
  
• Cashflow anxiety
  
• Reactive decision-making
  
• Reduced confidence
  

That isn’t how running a property portfolio should feel.

What Good Advice Actually Feels Like

Directors working with the right accountant often say:

• “I understand my numbers now.”
  
• “Nothing sneaks up on me anymore.”
  
• “I know what I can safely withdraw.”
  
• “Tax isn’t stressful — it’s planned.”
  

That confidence doesn’t come from being more experienced.

It comes from visibility, structure, and guidance.

The Real Difference Isn’t Cost — It’s Value

A proactive advisory relationship may cost more than a basic compliance package.
But the cost of:

• Unexpected tax bills
  
• Cashflow pressure
  
• HMRC penalties
  
• Poor structuring decisions
  
• Missed planning opportunities
  

Is almost always higher.

Final Thought: You Don’t Need More Accounting — You Need Better Accounting

Property limited companies don’t need thicker reports.

They need:

• Clear explanations
  
• Regular reviews
  
• Forward-looking advice
  
• An accountant who understands property specifically
  

If you only hear from your accountant when something is due, they are recording your past — not supporting your future.

And in property, the future is where the real money is made.