Most property directors don’t change accountants because of price.
They change because of frustration.
It usually sounds like this:
“They do the accounts… but I still don’t really understand what’s going on.”
“I only hear from them once a year.”
“I didn’t realise there would be a tax bill like that.”
“I assumed they’d tell me if there was a problem.”
The uncomfortable truth is this:
Many accountants do exactly what they’re paid to do — and nothing more.
They file the accounts.
They submit the tax return.
They meet deadlines.
But for property limited companies, that simply isn’t enough.
In this blog, we’ll explain:
- What compliance accounting actually covers
- Why property companies need more
- What a good accountant should be doing differently
- And how better advice changes both results and stress levels
The Problem Isn’t Bad Accountants — It’s the Wrong Level of Service
Let’s be clear:
Most accountants are competent.
The issue is that property companies are complex, and many directors are still on a service designed for:
- Small trading companies
- Simple income streams
- Minimal asset ownership
Property businesses don’t fit that mould.
If your accountant treats your property company like any other limited company, problems are almost guaranteed to appear — just not immediately.
What Compliance Accounting Actually Covers
A basic compliance service typically includes:
- Annual accounts
- Corporation tax return
- Companies House filings
- Possibly a personal tax return
This work is essential.
It keeps you legal.
But it is also:
- Backward-looking
- Historic
- Reactive
By definition, compliance tells you what has already happened — not what’s about to cause trouble.
Why Property Companies Need More Than Compliance
Property limited companies face challenges that don’t show clearly in year-end accounts, including:
- Cashflow strain from mortgages
- Capital repayments vs profit
- Director’s loan account exposure
- Dividend mistakes
- Tax timing issues
- Refinancing implications
If these are only reviewed after the year ends, the opportunity to fix them has often passed.
This is why so many property directors feel blindsided — even though nothing illegal or reckless actually occurred.
What a Good Accountant Should Be Doing (But Often Isn’t)
A good accountant for a property limited company doesn’t just report numbers.
They interpret, challenge, and plan.
Here’s what that looks like in practice.
1. Explaining the Numbers in Plain English
Property directors don’t need jargon.
They need answers to questions like:
- “How much money can I safely take?”
- “Why is the profit higher than the cash?”
- “What tax is coming, and when?”
- “What’s likely to be a problem next year?”
A good accountant translates figures into decisions.
If you leave a meeting with more confusion than clarity, the service is failing — not you.
2. Reviewing Director Pay Before It Becomes a Problem
As covered in Blog 1, salary vs dividends is not a one-time decision.
A good accountant:
- Reviews director pay during the year
- Checks dividend affordability
- Flags personal tax exposure early
- Aligns 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.
A good accountant:
- Reviews loan balances regularly
- Warns when withdrawals are risky
- Explains consequences clearly
- Helps plan repayments or restructuring
Silence here is costly.
4. Focusing on Cashflow, Not Just Profit
Property companies don’t fail because they’re unprofitable.
They fail because they run out of cash.
A good accountant:
- Highlights cash pressure early
- Separates profit from liquidity
- Helps forecast tax and mortgage impact
- Prevents nasty surprises
This is especially important where portfolios are growing.
5. Planning Tax Before the Bill Arrives
One of the biggest complaints we hear from property directors is:
“I didn’t realise the tax would be that high.”
That shouldn’t happen.
A good accountant:
- Estimates tax during the year
- Encourages funds to be set aside
- Explains how decisions affect future tax
- Reduces shocks and stress
Tax planning is not avoidance.
It’s preparation.
6. Supporting Growth, Not Just Reporting History
Property companies evolve:
- New purchases
- Refinancing
- Incorporation of portfolios
- Changes in funding structure
A good accountant:
- Advises before decisions are made
- Explains consequences clearly
- Supports lenders’ requirements
- Helps directors choose the right path
Waiting until after the event often means fewer options and higher costs.
Why Many Property Directors Stay Too Long With the Wrong Setup
Most directors don’t leave their accountant because of one big issue.
They stay because:
- “It’s probably fine”
- “I don’t want the hassle”
- “They’ve always done it this way”
- “I don’t really know what I should expect”
But over time, small gaps turn into:
- Repeated surprises
- Stress around tax deadlines
- Lack of confidence in decisions
- A feeling of being reactive, not in control
That’s not how running a property business should feel.
What Good Advice Feels Like
Property directors with the right accountant often say:
- “I understand my numbers now”
- “Nothing sneaks up on me anymore”
- “I know what I can take and what I can’t”
- “Tax isn’t scary — it’s planned”
That confidence doesn’t come from intelligence or experience.
It comes from visibility and guidance.
The Real Difference Isn’t Cost — It’s Value
A proactive accountant may cost more than a basic compliance service.
But the cost of:
- Unexpected tax
- Cashflow stress
- HMRC penalties
- Poor decisions
- Missed opportunities
Is almost always higher.
Final Thought: You Don’t Need More Accounting — You Need Better Accounting
Property limited companies don’t need complicated reports.
They need:
- Clear explanations
- Timely advice
- Ongoing review
- Someone who understands property specifically
If your accountant only speaks to you when something is due, they’re not supporting your future — they’re recording your past.