Introduction
Many directors of utility-based limited companies believe that having an accountant means one thing:
“They do my accounts and tax return.”
While that might keep you technically compliant, it often falls well short of what a good accountant should actually be doing — especially in a commission-based utility business.
Selling utilities brings a unique mix of:
- Recurring but variable commission income
- Clawbacks and adjustments
- VAT complexity
- Cash flow pressure despite profitability
In this environment, a reactive, once-a-year accountant isn’t just unhelpful — they can cost you money.
In this blog, we’ll explain:
- What many accountants only do
- What a good accountant should be doing
- Why this matters so much for utility-based limited companies
- How the right support changes outcomes
The Bare Minimum: What Most Accountants Do
Let’s start with the baseline.
A compliance-only accountant will typically:
- Prepare annual accounts
- Submit corporation tax returns
- File personal tax returns
- Process year-end adjustments
This keeps HMRC happy — but it’s backward-looking and usually happens months after decisions were made.
For simple businesses, this might be enough. For commission-based utility companies, it rarely is.
Why Utility Businesses Need More Than Compliance
Utility-based limited companies don’t operate in neat, predictable patterns.
Directors are constantly making decisions about:
- How much to draw
- Whether they can afford dividends
- How VAT will impact cash
- What future tax bills might look like
Without timely advice, these decisions are often made in the dark.
That’s where a good accountant earns their keep.
What a Good Accountant Should Be Doing (In Practice)
1. Helping You Understand Your Numbers
A good accountant doesn’t just produce figures — they explain them.
You should understand:
- Where your profit comes from
- Why your cash balance moves the way it does
- What money is actually safe to take
If you don’t feel confident explaining your own numbers, something is missing.
2. Proactive Director Pay Planning
In utility businesses, director pay should never be an afterthought.
A good accountant should:
- Advise on salary vs dividends
- Review drawings regularly
- Warn you before tax problems arise
This avoids:
- Overdrawn Director’s Loan Accounts
- Unnecessary personal tax
- Cash flow shocks
3. Monitoring Director’s Loan Accounts
DLAs are one of the biggest hidden risks in utility-based limited companies.
A good accountant will:
- Track the balance throughout the year
- Flag problems early
- Offer solutions before year-end
If you only hear about your DLA when the accounts are finished, that’s too late.
4. Making VAT Understandable (and Predictable)
VAT causes more stress than it should — often because it’s not explained properly.
A good accountant should:
- Confirm the correct VAT treatment of commissions
- Help you budget for VAT
- Ensure VAT doesn’t erode cash flow
VAT should never come as a surprise.
5. Providing Management Accounts (Not Just Statutory Accounts)
Statutory accounts are designed for HMRC and Companies House — not for running a business.
Management accounts are what directors actually need.
For utility businesses, these should show:
- Real profitability
- Tax provisions
- Cash position
- Director drawings
This turns guesswork into informed decision-making.
6. Flagging Issues Before They Become Problems
A good accountant is proactive.
They should tell you:
- If you’re heading towards a tax spike
- If dividends aren’t supported by profits
- If cash flow is tightening
You shouldn’t be the one discovering problems first.
7. Supporting You Throughout the Year — Not Just at Year-End
Utility businesses operate year-round.
Your accountant should:
- Be available for questions
- Check in periodically
- Adjust advice as your business changes
Annual contact is not enough for a commission-based business.
The Cost of a “Cheap” Accountant
Many directors choose accountants based on price.
What often gets missed is the hidden cost:
- Excess tax paid
- Missed reliefs
- Poor cash decisions
- Stress and uncertainty
The cheapest accountant on paper is often the most expensive in reality.
Signs Your Accountant Isn’t the Right Fit
You may want to review your current setup if:
- You don’t know your current tax position
- VAT bills catch you off guard
- Director’s Loan Accounts are a mystery
- You only speak once a year
- Advice is reactive, not proactive
What “Good” Looks Like for Utility-Based Companies
A good accountant for a utility business should feel like:
- A sounding board
- An early warning system
- A strategic partner
Not just a form-filler.
How We Support Utility-Based Limited Companies
We work with utility-focused limited companies to:
- Provide ongoing bookkeeping and management accounts
- Plan director pay and tax proactively
- Keep VAT and cash flow predictable
- Remove uncertainty from financial decisions
Our approach is built around clarity, not complexity.
Final Thoughts
A good accountant doesn’t just keep you compliant — they help you make better decisions.
For utility-based limited companies, where income is variable and cash flow can be tight, this support is invaluable.
If your accountant only looks backwards, it may be time to ask what they should be doing — and whether you’re getting it.