Accountants for RMC and RTM Companies
Clear Service Charge Accounting for Resident-Led Buildings
Reflex Accounting provides specialist Service Charge Accounting for resident-led developments. Our RMC & RTM Accountants help turn incomplete records, multiple cost schedules and unexplained balances into clear accounts and practical financial information for directors, managing agents and leaseholders.
From annual service charge accounts and statutory company accounts to budgeting, reserve-fund reporting and handover support, you receive one coordinated service shaped around your building and its leases.
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Clear Year-End Accounts
See what was collected, what was spent and what remains unpaid
Service-Charge Funds Kept Clear
Keep money held for the building identifiable.
Payroll, VAT & Corp. Tax
Complete compliance under one roof
Accounting Support for Resident-Led Companies
The accounting responsibilities of an established RMC, a newly formed RTM company and a self-managed block are not identical. Support should reflect who manages the property, what the leases require, how many service-charge schedules exist and whether the records are maintained by directors or a managing agent.
Residents’ Management Companies
An RMC may be named in the leases and responsible for arranging services, repairs, insurance and maintenance. As Accountants for Residents’ Management Companies, we help directors understand the service-charge fund separately from the company’s own finances, prepare the required year-end reporting and keep statutory filings on track.
Right to Manage Companies
Taking over management gives leaseholders greater control, but it also creates ongoing financial administration. Our Accountants for Right to Manage companies help establish sound records, account for transferred balances, monitor service-charge funds and support the company’s annual reporting obligations.
Self-Managed Blocks
Volunteer directors often manage invoices, contributions and queries alongside full-time work. Our RMC accountants can take over agreed bookkeeping and year-end tasks, reconcile the records and give the board a clearer view of available funds and outstanding commitments.
Companies With Managing Agents
Appointing an agent does not remove the directors’ need to understand the financial position. Our RTM accountants and RMC specialists work with your agent, agree a year-end information pack, investigate gaps and give the board an independent point of contact for the accounting work.
New RMC and RTM Companies
The first accounting period can involve opening balances, transferred service-charge funds, supplier contracts, reserve schedules and company setup costs. We help create a clean starting position and identify which items belong to the company and which relate to the service-charge trust.
Service Charge Accounting Built Around Your Building
There are different leases, accounting records and accounting requirements for every development. You have the option of support for a particular year-end task or accounting services for the whole company, service charge fund and board accounts.
Annual Service Charge Accounts
We produce annual accounts of income, expenditure, accruals, prepayments, amounts receivable from leaseholders, amounts payable to suppliers, and movements in reserve or sinking funds. Accounts are produced in relation to the leases, accounting records and appropriate professional guidance. Where necessary, a balance sheet, comparison with the previous year or budget and notes of explanation are provided to help directors and leaseholders understand the movements rather than being provided with bare figures.
Service-Charge Bank Reconciliations
We reconcile the service-charge account with the bank and look into any unaccounted receipts, double booking, unreconciled payments and old reconciling items. Where there is a single client account containing the money for more than one building, the accounting records have to distinguish between schemes. Service charge funds should not be used to pay for the company’s own expenses or other buildings’ bills.
Reporting on Reserve and Sinking Funds
We prepare detailed schedules for each fund illustrating their opening balances, contributions, expenditure, income, and closing balances. This makes it easy for directors to understand how much has been reserved for future works and whether the balances reconcile with the bank and accounting records. The contribution and expenditure of the reserve funds should be consistent with the leases. We can model the financial impact of future works by taking into consideration information provided by you or your surveyor or managing agent.
Budgets and Forecast of Cash Flows
A balanced annual budget may not be enough to help the property cover its cash requirements when, for instance, insurance and utility payments fall due before all contributions have been received. Our accountants for RMC and RTM companies make budgets and forecasts for cash flows based on what is expected to be spent, the dates payments are due, and the arrears and contributions.
Ledgers for Leaseholders and Recording of Arrears
We keep accounts for leaseholders such that the board knows what current, advance payments, credit, past arrears and disputed amounts. The reports enable one to see the effect of late payments on the commitments to suppliers and the cash flow of the building.
Cost Schedules and Apportionments
There may be different cost schedules for different parts of a development such as individual blocks, lifts, parking lots, heating systems and general estate costs. We apportion the recorded cost to the right schedules based on the accounting basis agreed and the information provided by the person who has interpreted the lease.
Independent Reports, Certification and Audit
We first understand what is required by the leases and then decide the appropriate scope, process, outcome and timeline. Where an audit is actually required, it should be done as an audit and not just a lesser scope check. Any independent reporting is subject to agreement, access to sufficient records, independence, and applicable standard of reporting.
RMC and RTM Statutory Accounts
Service charge accounts and company accounts are not the same thing. The service charge accounts set out the income and expenditure on the building, whereas the statutory accounts state the financial standing of the RMC or RTM company. Our RMC accountants prepare the relevant company accounts and arrange any required Companies House filing, such as the confirmation statement.
Request a quote or ask for advice
We work with a wide range of businesses on a national level and can give you the friendly and expert accounting advice you need.
Common Accounting Challenges We Solve for SaaS Businesses
Accounts Are Overdue
Missing records and unresolved queries can keep accounts open long after year end. We establish what is available, identify the gaps, agree responsibilities and create a realistic completion plan.
The Bank Balance Looks Healthy but Is It?
Cash may already be committed to unpaid invoices, reserve funds, advance contributions or one particular schedule. We reconcile those commitments so the board can see a more accurate available position.
Arrears Are Holding Up Repairs
A budget may look sufficient while late payments create a real cash shortage. We show what is outstanding, how long balances have remained unpaid and the effect on upcoming supplier payments.
Leaseholders Are Challenging the Figures
Unexplained overspends and vague cost headings damage trust. We improve the accounting trail, show material budget variances and organise supporting information so directors can respond with facts.
Reserve Funds May Be Inadequate
A large roof, lift or external-works project can expose years of underfunding. We use the available professional cost information to model the gap and timing, giving directors an earlier view of the financial challenge.
The Managing-Agent Handover Is Incomplete
Transferred cash may not agree with the ledger, or reserve and arrears schedules may be missing. We document the discrepancies and help the incoming board establish defensible opening balances.
Why Directors Choose Specialist Support
An RMC or RTM director may be a volunteer, but the company’s financial responsibilities are real. Directors need an accountant who understands both company reporting and the separate leasehold accounting issues behind service charges.
Our Accountants for RMC and RTM Companies bring those areas together without blurring them. We work with directors and managing agents, agree what records are needed, explain material issues and provide a clear route from day-to-day bookkeeping to signed year-end accounts.
As specialist RMC & RTM Accountants, we focus on the questions that matter to a board:
- Do the bank and ledgers agree?
- Are the service-charge funds and company transactions clearly separated?
- What do the leases require from the accounts?
- What remains unpaid or unrecorded?
- How have reserve balances changed?
- Can the building meet its upcoming commitments?
- Is an audit, certification or another accountant’s report required?
- Are company and trust tax obligations being assessed separately?
You receive practical explanations, a defined scope and a reporting timetable rather than unexplained figures at the end of the process.
Better Financial Control Between Year Ends
Board Reports That Prompt Action
We turn detailed accounting records into a concise picture of expenditure, cash, arrears, creditors and reserve movements. Significant variances are highlighted so the board can investigate early rather than waiting for the annual accounts.
As Accountants for Residents’ Management Companies, our role is not simply to total invoices. It is to help directors understand what the figures mean for supplier commitments, future budgets and communication with leaseholders.
FAQs
What is a Residents’ Management Company?
A Residents’ Management Company usually manages services, repairs and maintenance for a residential development under the leases or related arrangements. Leaseholders are commonly members or shareholders, while the directors make the company’s day-to-day decisions.
Our Accountants for Residents’ Management Companies support the company’s statutory reporting alongside the separate service-charge accounts and financial records.
What is a Right to Manage company?
A Right to Manage company is a specific company through which qualifying leaseholders take over the management of their building without having to prove that the previous manager was at fault.
Our Accountants for Right to Manage companies can help with opening records, service-charge reporting, statutory company accounts and the financial aspects of agent handovers.
Are service-charge accounts the same as company accounts?
No. Service-charge accounts report money collected and spent for the building, whereas statutory accounts report the RMC or RTM company’s own financial position. Service-charge trust balances do not simply become company assets, and professional guidance recommends a separate service-charge statement.
Our RTM accountants coordinate the two reporting streams while keeping their purposes clear.
Does every RMC or RTM company need annual service-charge accounts?
The lease is the first place to check. Under the current framework, there is not a universal statutory requirement prescribing routine annual accounts in every case, but leases commonly require them and current professional best practice supports annual reporting to leaseholders.
The 2024 Act contains broader future requirements, but the relevant accounts-and-annual-reports section is still prospective and depends on commencement and secondary legislation.
What is the difference between RMC and RTM companies?
An RMC’s management role commonly arises from the leases or the ownership and governance arrangements of the development. An RTM company is created under the statutory right-to-manage framework and has prescribed constitutional requirements.
Both can have company-law obligations and responsibilities connected with service charges, but their documents, powers and funding arrangements should be reviewed individually.
How soon should service-charge accounts be prepared?
Follow any deadline stated in the leases. Current professional guidance supports issuing annual statements within six months after the accounting year end, but this should not be presented as a universal current statutory deadline in every case.