The process is usually straightforward, but providing the right information at the beginning can help your CPA understand exactly what is required and determine what documentation is needed.
A CPA letter can cover different types of financial information, including business ownership, self-employment income, business revenue, tax return information, or other financial details. Because each request can have different requirements, it is important to give your accountant the exact instructions provided by the organization requesting the letter.
This guide explains how to request a CPA letter, what to prepare, what your accountant may need, and what to do if additional information is required.
What Is a CPA Letter?
A CPA letter is a professional letter prepared by a Certified Public Accountant for a specific purpose. Depending on the circumstances, it may provide information or confirmation concerning a client’s financial or business activities.
For example, a CPA letter may address:
- Business ownership
- Self-employment
- Business income
- Revenue
- Profit and loss information
- Tax return preparation
- Financial records
- Business operations
- Income and expense information
The exact information that can be included depends on the purpose of the letter, the CPA’s relationship with the client, and the records available for review.
A CPA letter should accurately reflect information the CPA can appropriately support rather than simply stating whatever information a requester wants included.
Step 1: Find Out Exactly Why the Letter Is Needed
Before contacting your accountant, identify the purpose of the CPA letter.
Ask the organization requesting the letter:
- What information needs to be verified?
- What period should the letter cover?
- Does the letter need to be on CPA firm letterhead?
- Does it need to be signed?
- Is a specific format required?
- Does the organization provide a template?
- Does the letter need to be submitted directly by the CPA?
- Is there a deadline?
For example, a lender may want verification of self-employment income, while a business transaction may require verification of ownership.
Knowing the exact purpose helps your CPA determine what information is relevant.
Step 2: Give Your Accountant the Requester’s Instructions
If the lender, landlord, agency, or other organization gave you written instructions, send those instructions to your CPA.
This is one of the most important steps in the process.
Rather than simply saying:
“I need a CPA letter.”
provide details such as:
“My lender needs a signed letter confirming that I am self-employed and providing information about my business income for the current year.”
If the requester has supplied a template or specific wording, provide the original document to your accountant.
This can help prevent unnecessary revisions later.
Step 3: Tell Your CPA What Information You Need Verified
Be specific about what the letter should address.
Depending on the request, you may need verification of:
Business Ownership
You may need confirmation that you own or have an ownership interest in a particular business.
Self-Employment
A lender or other organization may want confirmation that you are self-employed.
Business Income
The letter may need to address revenue, net income, or another specific income figure.
Income and Expenses
Some requests may require information concerning both business income and expenses.
Tax Return Information
A requester may ask the CPA to confirm that the CPA prepared or assisted with certain tax returns.
Business Activity
The organization may want information about whether the business is currently operating.
Do not assume that “income verification” means the same thing in every situation. Clarify whether the requester means gross revenue, net income, taxable income, or another figure.
Step 4: Gather the Necessary Documents
Your CPA may need supporting records before preparing the letter.
Depending on the request, these may include:
- Recent tax returns
- Business tax returns
- Profit and loss statements
- Balance sheets
- Bookkeeping reports
- Bank statements
- Invoices
- Receipts
- Payroll records
- Business formation documents
- Ownership records
- General ledgers
- Year-to-date financial reports
You may not need every document on this list. Your accountant can tell you which records are relevant to your specific request.
Step 5: Make Sure Your Bookkeeping Is Current
If the CPA letter concerns current or year-to-date financial information, up-to-date bookkeeping can be especially important.
Your accountant may need to determine:
- How much revenue the business generated
- What expenses were recorded
- Whether transactions are properly categorized
- Current profit or loss
- Whether bank accounts have been reconciled
- Whether owner transactions have been properly recorded
If bookkeeping is incomplete, your CPA may need additional time to organize or review the records before preparing the letter.
This is one reason it is better to request a CPA letter before the deadline rather than waiting until the last minute.
Step 6: Confirm the Relevant Time Period
Always identify the period that needs to be covered.
A CPA letter might concern:
- A previous tax year
- The current calendar year
- Year-to-date income
- A specific month
- Several years
- A specific business period
For example, if a lender asks for current-year income but your request to the CPA only mentions last year’s tax return, the accountant may not have enough information to prepare the requested letter.
Providing the exact dates can prevent confusion.
Step 7: Ask About the CPA’s Review and Requirements
Your accountant may need to review records before determining what can be included.
Depending on the request, the CPA may consider:
- Tax returns
- Accounting records
- Financial statements
- Bank records
- Bookkeeping information
- Business documents
- Other supporting documentation
The CPA may also explain that certain information cannot be verified if there is insufficient documentation or if the CPA does not have an appropriate basis for making the requested statement.
Step 8: Ask About Cost and Turnaround Time
CPA letters may be billed differently depending on the accountant and the amount of work required.
Before the work begins, ask:
- Is there a fee for the letter?
- Is the fee separate from regular accounting services?
- Does reviewing additional records create additional charges?
- Is there an expedited service fee?
- When can the letter be completed?
A simple letter based on readily available records may require less work than a request involving several years of financial information or incomplete bookkeeping.
Step 9: Review the Request Before Submission
Once the letter is prepared, review it for basic accuracy.
Check:
- Your name
- Business name
- Reporting period
- Type of information verified
- Dates
- Business ownership information, if applicable
- Income figures, if included
- Contact information
- Requester’s specific requirements
If the requesting organization supplied a required format, confirm that the letter follows it.
Do not ask your CPA to make unsupported statements simply because a third party prefers certain wording. The letter should accurately reflect the information the CPA can support.
Step 10: Submit the Letter According to the Instructions
Some organizations allow the client to submit the CPA letter. Others may require the CPA or accounting firm to send it directly.
Follow the requester’s instructions carefully.
If the organization requires direct submission from the CPA, ask your accountant how they prefer to deliver the document.
What Should You Say When Requesting a CPA Letter?
A clear request can save time.
You can tell your accountant:
- Why you need the letter
- Who requested it
- What information needs to be verified
- What period needs to be covered
- When it is due
- Whether a template was provided
- How the letter must be submitted
For example, a business owner requesting income verification should explain whether the requester needs gross revenue, net business income, or another specific measure.
Sample CPA Letter Request
You can use a simple message like the following when contacting your accountant:
Subject: Request for CPA Letter
Hello,
I am requesting a CPA letter for [purpose]. The organization requesting the letter needs verification of [specific information] for the period from [date] to [date].
I have attached the requirements/template provided by the organization. Please let me know what documents or additional information you need from me to prepare the letter.
The requested deadline is [date].
Thank you.
What If You Need a CPA Letter Quickly?
If you have a short deadline, tell your accountant immediately.
Provide all available information at once, including:
- The requester’s instructions
- Required template
- Deadline
- Tax returns
- Current financial reports
- Relevant bookkeeping records
- Business ownership documents, if applicable
Avoid sending information in multiple batches unless necessary. Having the relevant records available from the beginning may help reduce back-and-forth communication.
However, a CPA should not be expected to verify information that has not been adequately supported simply because the deadline is urgent.
What If Your CPA Did Not Prepare Your Tax Return?
You can still ask a CPA about a letter, but what they can state may depend on their relationship with you and the records they have reviewed.
For example, a CPA who did not prepare a particular tax return may not be able to personally confirm that they prepared it.
Similarly, a CPA may need to review underlying records before addressing certain financial information.
Be prepared to provide supporting documentation and explain exactly what the requester needs.
Can Any Accountant Write a CPA Letter?
Not every accountant is a CPA, and not every CPA will necessarily provide every type of letter.
A CPA may have professional, engagement, independence, documentation, or liability considerations that affect whether they can provide a particular letter.
The best approach is to discuss the request with your accountant and provide the exact requirements before assuming the letter can be prepared.
Common Mistakes When Requesting a CPA Letter
Asking for a Letter Without Explaining the Purpose
Your CPA needs to understand why the letter is being requested.
Not Providing the Requester’s Instructions
A general letter may not satisfy a lender or other organization if specific information is required.
Waiting Until the Deadline
Your accountant may need time to review records or update bookkeeping.
Confusing Revenue With Net Income
These figures are not interchangeable.
Providing Incomplete Records
Missing financial information can delay the process.
Assuming the CPA Can Verify Anything
A CPA can only appropriately address information supported by the records and circumstances of the engagement.
Failing to Confirm the Reporting Period
Always specify the dates that matter.
How Concepts CPA Can Help
If you need a CPA letter for a lender, financial application, business transaction, or another verification purpose, Concepts CPA can help you understand what information and financial records may be needed for the request.
Providing clear instructions, organized records, and the requester’s requirements can make the process easier and help your accountant determine the appropriate scope of the letter.
Frequently Asked Questions
How do I ask my CPA for a letter?
Contact your CPA and explain why you need the letter, what information needs to be verified, the relevant time period, the deadline, and any instructions or template provided by the requesting organization.
What documents should I send my CPA?
Depending on the request, you may need tax returns, bookkeeping records, financial statements, bank statements, invoices, receipts, ownership documents, or other supporting records.
How much does it cost to request a CPA letter?
The cost varies depending on the CPA, the complexity of the request, the amount of record review required, and whether additional accounting work is necessary.
How long does it take to get a CPA letter?
Turnaround time varies. A straightforward request with organized records may be completed relatively quickly, while complex requests or incomplete bookkeeping may require additional time.
Can my CPA send the letter directly to the lender?
Possibly. Some organizations require direct submission by the CPA, while others allow the client to submit the letter. Follow the instructions provided by the requesting organization.
Can a CPA write a letter confirming self-employment?
A CPA may be able to provide information concerning self-employment when the relevant facts and records can be appropriately supported.
What if my accountant says they cannot provide the letter?
Ask why the request cannot be completed. The issue may involve insufficient documentation, the scope of the CPA’s engagement, professional considerations, or wording the CPA cannot appropriately support.
Should I request the CPA letter before applying for a loan?
If you know a lender will require one, requesting it early can help avoid delays. Confirm the lender’s exact requirements before asking your CPA to prepare the letter.
Conclusion
Requesting a CPA letter does not have to be complicated. The key is to give your accountant clear information about why the letter is needed, what needs to be verified, which period it should cover, and when it is due.
Providing the requester’s instructions and organized financial records can help your CPA determine what information can appropriately be included and reduce unnecessary delays.
Whether the letter concerns business ownership, self-employment, income, expenses, tax information, or another financial matter, start by getting the exact requirements from the organization requesting it. Then provide those requirements directly to your accountant so the letter can be prepared for its intended purpose.
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