The accountant's letter for a business loan: what it should say

On a clean file, an accountant’s letter is a nice extra. On a difficult file, it can be the document that makes the rest make sense. When financial statements are late, when the ATO balance is in flux, or when last year’s numbers don’t reflect how the business is trading now, a lender needs someone independent to confirm the facts. Your accountant is usually the best-placed person to do it.

This guide covers what lenders hope to read, what accountants can and can’t say, and how to brief yours so the letter helps rather than just ticking a box.

When do lenders ask for an accountant’s letter?

Most often in these situations:

Situation	What the lender needs confirmed
Financial statements not finalised	Draft or management figures and when final accounts are expected
Overdue tax lodgements	What’s outstanding and the catch-up timetable
ATO debt	The balance, its make-up and any payment arrangement
A loss year followed by recovery	Year-to-date trading and the reason for the loss
Low-documentation lending	Turnover or income for a recent period
Refinancing a specialist loan to a bank	Current position after the specialist loan fixed the original problem

If you’re relying on bank statements and BAS while your books catch up, the accountant’s letter is often the piece that ties them together.

What should the letter confirm?

Lenders vary, but these are the items that carry most weight on a difficult file.

1. The relationship. How long the accountant has acted for the business, and in what capacity (tax agent, accountant, BAS agent).

2. Lodgement status. Which income tax returns and activity statements have been lodged, and which are outstanding. If some are outstanding, the expected lodgement dates.

3. The ATO position. The current balance as shown on the ATO account, what it’s made up of, and whether a payment plan is in place and being kept.

4. Recent trading. Depending on what the accountant is comfortable confirming: turnover for the last financial year, year-to-date figures from management accounts, or figures from lodged BAS. The letter should say clearly whether figures are final, draft or unaudited.

5. Explanation of an anomaly. If there’s a loss year or an unusual item, a sentence on what caused it can help, provided the accountant knows the facts.

6. Structure. For trusts and companies, confirmation of the entities involved and their relationship, if relevant to the loan.

What can’t, or won’t, an accountant say?

Accountants are careful about what they put in writing, and for good reason. Most won’t:

• guarantee or forecast that the business can repay the loan;
• confirm figures they haven’t prepared or reviewed;
• describe the business’s prospects in promotional terms;
• comment on matters outside their engagement.

That’s fine. Lenders know the limits. A factual letter from a professional who knows the business is worth far more than an enthusiastic one with no specifics.

Not sure what your lender needs the letter to say? Ask a specialist before you brief your accountant; there’s no credit check to enquire.

How should you brief your accountant?

Accountants write better letters when they know exactly what the lender wants. Send a short email that includes:

1. The lender’s request, word for word if you have it.
2. The purpose of the loan and the amount.
3. The specific facts you need confirmed (lodgement status, ATO balance, turnover for a period).
4. The date the letter should be “as at”.
5. Who it should be addressed to, or “To whom it may concern” if the lender is happy with that.
6. Your deadline, with a reasonable lead time.

Make it easy: if your bookkeeping is current, the accountant can confirm figures quickly. If it isn’t, you may need to catch up the records first.

What does a useful letter look like?

Here’s an illustrative outline, with invented details. Your accountant will use their own wording and format.

[Accountant’s letterhead]

[Date]

To whom it may concern

Re: [Business name] — ABN [number]

We have acted as tax agent and accountant for [business] since [year].

As at [date], income tax returns for the [years] financial years have been lodged. The [year] return is in preparation and is expected to be lodged by [date]. All activity statements up to and including the [period] quarter have been lodged.

As at [date], the ATO integrated client account shows a balance of $[x], comprising [activity statement amounts] and [income tax]. [A payment plan of $[x] per [period] has been in place since [date] and payments are up to date.]

Based on management accounts prepared by the business and reviewed by us, turnover for the period [dates] was approximately $[x]. These figures are unaudited.

[Optional: The loss reported for the [year] financial year was primarily attributable to [event]. Trading since [date] has returned to [description consistent with figures].]

This letter is provided at the request of our client for the purpose of a finance application and is based on information available to us at the date above.

[Name, qualification, registration number, contact details]

How do you keep the letter consistent with everything else?

On a difficult file, the lender will cross-check. Before the letter goes out:

• match the ATO balance to the ATO statement you’re providing;
• match turnover figures to BAS and bank statements for the same period;
• make sure lodgement dates align with what the ATO portal shows;
• use the same “as at” date as your proposal where possible.

If anything doesn’t match, fix it before sending. A discrepancy, even an innocent one, invites questions that slow everything down.

How does the letter fit into the bigger application?

Think of the application as a short story with evidence. Your one-page lending proposal tells the story. The bank statements, ATO statement and credit reports are the raw evidence. The accountant’s letter is an independent professional confirming that the story and the evidence line up. Together, they let a lender say yes with confidence.

What about the lodgement deadlines themselves?

If the letter promises lodgements by a date, make sure they happen. The ATO publishes due dates for activity statements; for example, quarterly BAS for July to September is due on 28 October for businesses that lodge themselves, with extensions for some online and agent lodgements. The ATO also advises calling before the due date if you can’t lodge on time. A lender that funded you on the strength of a lodgement timetable will check it was kept, particularly when you come back to refinance. See the refinance exit.

When is a letter not enough?

If the lender needs full financial statements, for example for a large loan or a bank refinance, a letter won’t substitute. In that case, the letter can confirm when the statements will be ready, and a specialist route that doesn’t depend on them can bridge the gap.

Questions to ask your accountant before the letter is written

• Which facts are you comfortable confirming, and which would you rather not?
• Are our records current enough for you to confirm turnover for the period the lender wants?
• Does the ATO account show anything we haven’t discussed, such as penalties or a lapsed plan?
• If lodgements are outstanding, what dates can you realistically commit to?
• Would you be willing to take a short call from the lender if they have a follow-up question?

The last question matters more than it looks. On a complicated file, a five-minute conversation between the credit assessor and your accountant can settle doubts that would otherwise take a week of emails. Agreeing to it in advance shows the lender you have nothing to hide.

Ready to put the letter to work?

A clear accountant’s letter, alongside the right route, can turn a stalled application into a funded one. Asking us doesn’t involve a credit check, your details aren’t sent to a long list of lenders, and a specialist will tell you exactly what the letter needs to cover for your situation. Please be accurate on the form about lodgements and the ATO position, so we can brief you properly from the start. See if you qualify.