Quick answer
An accountant's letter is a short, signed letter from your registered tax agent or accountant confirming key facts about your business, usually its turnover or income, its structure, and that tax lodgements are up to date or in progress. Lenders sometimes accept one instead of full financial statements, especially when returns aren't lodged yet. It should state facts the accountant can verify, not forecasts or guarantees.
Key points
- It's a short factual letter, not a full set of financials.
- Useful when tax returns aren't lodged or financials aren't finished.
- It must come from someone who actually knows your figures.
- Ask the lender what it needs confirmed before your accountant writes it.
Sometimes the simplest way to fill a paperwork gap is a single page from the person who knows your numbers best. That’s the accountant’s letter. Here’s when it helps, what it should contain, and how to ask for one without it turning into a week of emails.
What is an accountant’s letter?
It’s a short letter, on the accounting firm’s letterhead and signed by your accountant or registered tax agent, that confirms specific facts about your business. It’s sometimes called an accountant’s declaration or confirmation letter.
It is not:
- a full set of financial statements,
- a forecast or business plan,
- a promise that you can afford a loan.
Think of it as a trusted professional saying “yes, these facts are correct” so the lender doesn’t need a stack of documents to reach the same conclusion.
When would a lender ask for one?
The most common situations:
- Tax returns aren’t lodged yet. The letter confirms income for the period and that lodgement is underway. More on this in business loans without tax returns.
- Financial statements aren’t finalised. A mid-year letter can confirm turnover while the full accounts are being prepared.
- Income is complex. A business with several entities, or income that doesn’t show neatly in one bank account, may benefit from a professional summary.
- Checking tax status. Confirming that BAS and returns are lodged and whether any tax is owing.
Whether a letter will help depends on the option and the lender. We’ll tell you before you spend time or money getting one. If you’re not sure where you stand, start with a no-check enquiry.
What should the letter include?
A useful letter is short and factual. Typically:
| Include | Example wording (illustrative) |
|---|---|
| Who the client is | “We act for XYZ Pty Ltd (ACN …) and have done since 2021.” |
| Structure | “The company trades as trustee for the XYZ Family Trust.” |
| Income or turnover | “Turnover for the year ended 30 June 2026 was approximately $…” |
| Lodgement status | “BAS are lodged to the March 2026 quarter; the 2025 company return is in preparation.” |
| Tax debt (if any) | “There is an ATO payment plan in place, currently up to date.” |
| Signature and registration | Name, firm, tax agent number, date |
Avoid asking the accountant to comment on things they can’t verify, or to say you “can afford” a loan. Lenders make that judgement themselves, and most accountants won’t sign it anyway.
How do I ask my accountant for one?
Make it easy for them. A good request email covers:
- What it’s for: “a business loan application”.
- Exactly what needs confirming: list the items above that apply.
- Which period: for example, the last financial year, or the year to date.
- Who it’s addressed to: often “To whom it may concern” is fine; ask us if the lender has a preference.
- When you need it by.
Clear requests get quick letters. Vague ones get phone tag.
How is an accountant’s letter different from BAS or tax returns?
| Document | What it gives the lender | Timeliness |
|---|---|---|
| Tax return | A full year’s income and profit, as lodged | Can be well over a year old |
| BAS | Quarterly or monthly GST turnover | Recent, if lodged on time |
| Accountant’s letter | Confirmed key facts from a professional | Can be current to this month |
| Bank statements | Actual money moving | Up to date |
Often a lender combines them: bank statements plus recent BAS plus a short letter can do the job that full financials would otherwise do. See BAS for a business loan for how BAS fits in.
How do I check my accountant is registered?
The Tax Practitioners Board keeps a public register of registered tax agents and BAS agents. A quick search confirms registration, which is something lenders value when relying on a letter. It’s also a good habit for your own protection.
What happens after the lender receives it?
Usually, not much fuss. The lender reads the letter alongside your bank statements and any BAS, checks that the figures broadly line up, and may call your accountant to confirm the letter is genuine. That’s routine and nothing to worry about. If anything doesn’t match, the lender will ask a question rather than decline on the spot, which is why a clear, accurate letter matters more than a long one.
It also helps to keep a copy. If you proceed with a later application, a recent letter can sometimes be refreshed rather than rewritten from scratch. And if you’re still gathering everything else, our paperwork checklist builder keeps the rest of the list in one place.
Illustrative example: the café between returns
Illustrative only.
A café owner is refitting her kitchen and her 2026 return isn’t due to be lodged for months. The lender for her chosen option asks for six months of bank statements and an accountant’s letter confirming the business’s turnover for the year to 30 June and that BAS are up to date. Her accountant, given a clear list, turns it around in two days.
If your books need a tidy first, our guide on tidying your books before borrowing makes the accountant’s job faster too.
Ask before you ask your accountant
There’s no point paying for a letter you may not need. Our enquiry takes about 60 seconds, has no credit check when you first enquire, and your details stay with our lending team rather than being sent to a pile of lenders. A real person tells you plainly whether an accountant’s letter would help your application, and exactly what it should say.
Please tell us honestly where your tax lodgements are up to on the form. It helps us work out the simplest document path for you.
Frequently asked questions
When would I need an accountant's letter?
Usually when full financial statements aren't available or practical, for example when recent tax returns haven't been lodged, or when a lender wants a professional to confirm the income shown in your bank statements.
Can any accountant write one?
It should come from the accountant or registered tax agent who actually prepares your figures. You can check a tax or BAS agent's registration on the Tax Practitioners Board register.
Will my accountant charge for it?
Many do, as it takes their time and they're putting their name to it. A clear request with exactly what needs confirming keeps it quick.
Should the letter say I can afford the loan?
No. Accountants generally won't, and shouldn't, give that kind of assurance. The letter should confirm facts; the lender does its own assessment of affordability.
Is an accountant's letter always accepted?
Not always. It depends on the option, the amount and the lender. We'll tell you whether it's useful for your situation before you ask your accountant for one.