CPA Letters and Audited
Profit and Loss Statements
What Do We Do?
When small business owners are ready to buy a home, they may need a letter from a CPA that states the length of time the business has operated, verify the business registration, and a review of the business tax returns and other items that are a testament to the business’s legitimacy. The CPA has to certify that they have researched and reviewed all pertinent records to answer all the lender’s specific questions. We provide these letters at a reasonable cost.
Your lender may also require an audited profit and loss statement. This is used to show adequate income year to date (YTD) from your business in order to afford the home you desire to purchase. Whereas the lender will have your prior tax returns to verify the previous year’s annual income, they need the audited P&L to verify your YTD income. The audited P&L should be able to be verified through your bank statements and to some extent your previous tax returns.