What is an Accountant’s Letter?

Accountant Letter Template

You can have your accountant write the letter following their template if they have one. Otherwise, you can ask them to use this template to confirm your income.

Make sure they affix their letterhead and accurate details, and fax the official letter to us as your mortgage brokers.

Note that you can use this sample letter when the bank requires a confirmation letter indicating that the business you own is operating at a profit.

MM/DD/YYYY

To Whom It May Concern:

Re: {Applicant Name & Company Name}

We confirm the following details concerning {Applicant’s Name} and their company {Company Name}, for the purpose of their home loan application.

As the designated accountant for {Company Name}, we hereby confirm that to the best of our knowledge, based on our assessments and records, {Company Name} is operating profitably and can pay all the liabilities it has.

The information provided is accurate and entirely based on our internal records and bookkeeping.

Should you require further clarifications and additional information, please do not hesitate to contact our accounting office at {Accountant’s Number}. We are fully committed to providing all the necessary assistance to facilitate {Applicant’s Name}’s home loan application.

Warm regards,

(SIGN)

{Accountant’s Name}
{Accountant’s Position}

{Accounting Firm}

{Contact Information}

Feel free to talk to our Mortgage Pros senior mortgage brokers at 1300 030 388 or enquire now and we’ll assist with your letter.

Other Types of Accountant’s Letters

Aside from a simple confirmation, you may have unique circumstances requiring an accountant’s letter. Besides, your bank may request a letter for a different reason, especially if they want to confirm something from your application documents.

Note that privacy legislation restricts accountants from talking directly to your chosen bank or mortgage broker. That’s why you may need to request them to write a letter to your bank.

We’ve brought together different common types of letters that you may need so your accountant will have less work to do.

1. Businesses no longer trading/operating

As the designated accountant for {Company Name}, we hereby confirm that to the best of our knowledge based on our assessments and records, {Company Name} is no longer trading and operating and has no significant liabilities.

2. One-off expenses

We confirm that {Company Name} had a significant debt with their primary client during the 20XX-XX financial year which necessitated a write-off.

It’s important to note that this is a one-time event and is unlikely to reoccur. It would be appropriate to add this expense back when calculating {Applicant Name}’s ability to service a new loan.

3. Income change between financial years

We confirm that {Company Name} significantly increased their profit between 20XX-XX and 20XX-XX. This is because {Applicant’s Name} was not working for more than 6 months due to a personal emergency requiring their immediate attention.

For this reason, it would be appropriate to use the income figures from the previous financial year to assess {Applicant Name}’s capacity to take a new loan.

4. Income change due to start-up expenses

We confirm that there has been a significant increase in the profit generated by {Company Name} between 20XX-XX and 20XX-XX financial years. This is because 20XX-XX was the first year of company operation and several one-time expenses were necessary for start-up, including initial marketing costs and a comparatively smaller client base.

For this reason, it would be appropriate to use the 20XX-XX (newer) financial year to assess {Applicant Name}’s ability to service a new loan.

5. Owning a new business similar to the previous job

We confirm that {Applicant Name} was employed as a Data Security Consultant for 11 years before leaving to start his own business in the same industry.

{Applicant Name}’s business has only begun operating for a year, but it has already generated a substantial income with a consistently increasing customer base.

With successive enquiries with the company’s director and its recent business activity statements, it would be reasonable to expect the company’s income in the following financial year to be equal if not better than the previous financial year.

6. Contractor without any significant expenses

We confirm that {Applicant Name} is currently operating as a sole proprietor that contracts with several businesses. They are paid at an hourly rate and have incurred no significant expenses such as staff, rent, and tools unlike other business types.

For this reason, it would be appropriate to evaluate {Applicant Name}’s income as someone employed on a PAYG basis.

7. Recent changes in ABN or Business Structure

We confirm that the {Company Name} is the same business registered under {Applicant Name}’s sole trader ABN. While the company is a new entity, the business is essentially the same.

{Applicant Name} has been operating as a sole trader in this business for more than 10 years. For this reason, evaluating these two businesses as a single entity would be appropriate when assessing {Applicant Name}’s ability to take on a new loan.