What are Year End Accounts?

Year-end accounts are financial reports sent to leaseholders, detailing the actual expenses incurred in managing their building compared to the initial block budget provided at the start of the service charge period. These accounts are usually prepared by an independent service charge accountant, as specified by the lease. If the actual spending exceeds the budget, leaseholders typically receive a balancing charge, requiring them to pay the difference. Conversely, if the expenses are lower than anticipated, leaseholders may receive a surplus, resulting in a refund. Understanding these accounts is crucial for anticipating potential additional costs or refunds at the end of the financial year.