Quick answer
An accountant letter business loan uses a signed letter from your registered tax agent or accountant to confirm your business income, instead of lodged tax returns. The letter states how long the accountant has acted for you, your structure and your estimated income. Some low doc lenders accept it alongside bank statements, which helps when returns are late.
Key points
- A signed letter from your accountant confirms income.
- Usually used with bank statements, not on its own.
- The accountant must be registered and know your business.
- Useful when returns are late but trading is steady.
- Who signs
- Your registered accountant or tax agent
- Used with
- Bank statements, ID, ABN
- Best for
- Returns late or in progress
- Not accepted by
- Every lender; ask first
Sometimes the person who knows your business finances best isn’t you, it’s your accountant. An accountant’s letter puts that knowledge to work. Instead of waiting for a lodged return, a lender takes your accountant’s written confirmation of what the business earns.
It’s not a magic key, and not every lender accepts one. But for the right application it can save months.
What an accountant’s letter is
It’s a short, signed letter on your accountant’s letterhead confirming a few facts about your business so a lender can rely on them. It’s independent: the accountant puts their professional name to it, which is why lenders treat it differently from your own declaration.
A typical letter covers:
- Your name, business name, ABN and structure.
- How long the accountant has acted for you.
- Your estimated income or turnover for the current or most recent year.
- Confirmation that your tax lodgements are up to date, or a plan to bring them up to date.
- The accountant’s name, firm and registration details.
Some lenders supply their own template, which makes it easier for everyone. Ask before your accountant writes from scratch.
When it helps most
An accountant’s letter works best when the business is trading well but the paperwork is in progress:
| Situation | Why a letter helps |
|---|---|
| Last return not yet lodged | Confirms current income without waiting |
| Recently changed structure | Explains the old and new entities |
| Strong growth this year | Shows income the old return doesn’t |
| Seasonal or uneven deposits | Puts the bank statements in context |
It’s usually used with business bank statements, not instead of them. The statements show the money moving; the letter confirms what it adds up to.
What it won’t do
A letter won’t hide a problem. If there’s tax debt, an accountant can’t responsibly leave it out, and lenders will check anyway. It also won’t replace property for a no doc loan, and it won’t satisfy lenders who need full financials for larger amounts.
Asking your accountant
Give them plenty of notice and tell them exactly what it’s for. They’ll want to be comfortable with the income figure they’re confirming, so if your bookkeeping is behind, they may need you to catch up on the last few months first. Expect a modest fee at some practices.
If your accountant isn’t willing to estimate your income, take that as useful feedback. It usually means the records need work before any lender will be comfortable either. Our guide to getting a loan when your tax returns are late has a step-by-step plan.
Which lenders accept one
Acceptance varies a lot. Specialist and non-bank lenders are the most likely to take an accountant’s letter, usually for unsecured amounts up to a set limit or where property also supports the loan. Banks rarely accept one in place of returns for new lending. Even lenders that accept letters tend to have rules: the accountant must have acted for you for a minimum period, the letter must be recent, and the income figure must line up with what your bank statements show.
That last point matters most. If the letter says the business turns over $600,000 a year and the bank account shows deposits closer to half that, the lender will trust the account. A letter that matches the statements builds confidence; one that doesn’t raises questions. Before your accountant signs, make sure their estimate is grounded in what’s actually been banked, and be ready to explain any income that arrives somewhere else, such as a second account or a merchant facility that settles separately.
An illustrative example
A Hobart bookkeeping-software consultant restructured from sole trader to a company eight months ago. The company has no lodged return yet, and the old sole trader return doesn’t reflect the new contracts. She wants $25,000 for equipment and a marketing push. Her accountant writes a letter confirming the restructure, the current contracted income and that lodgements are on track. Combined with eight months of company bank statements, that’s enough for a low doc lender to assess her. Illustrative only.
Self-declaration versus accountant’s letter
Some lenders accept a signed income declaration from you instead. It’s quicker but carries less weight, and the amounts available tend to be smaller. If you have a good accountant, the letter is usually the stronger option. Compare both against the wider low doc options.
Find out if a letter will work for you
Tell us where your returns are up to and what you need the funds for. We’ll tell you whether an accountant’s letter is likely to help with the lenders who fit. There’s no credit check to make an enquiry, we don’t hand your details to a queue of lenders, and one real person reviews it. Answer accurately and we can match you properly the first time. Start your enquiry here.
Frequently asked questions
Will my accountant write one?
Most will if they've acted for you for a while and know your figures. Some charge a small fee, and some decline if your records are too far behind to estimate income responsibly.
What should the letter include?
Your name and business, how long they've acted for you, your structure and ABN, estimated income for the current or last year, and their registration details. Lenders may have their own template.
Can I use a bookkeeper instead?
Usually not. Lenders want a qualified accountant or registered tax agent. A bookkeeper's reports can support the application but rarely replace the letter.
Is it the same as a self-declaration?
No. A self-declaration is your own signed statement of income. An accountant's letter is independent confirmation, so lenders give it more weight.