If you’re self employed—consultant, contractor, creator, or small business owner—you already know that proving income isn’t as simple as handing over pay stubs. Underwriters, mortgage lenders, and even landlords want clear verification from a trusted third party. That’s where a Certified Public Accountant (CPA) comes in. A concise letter on firm letterhead can help translate your tax returns, financial statements, and bank statements into the language that lenders and leasing agents use to assess credibility, accuracy, and compliance.
This guide walks you through How to get a CPA letter for self-employment, what to prepare, how to communicate with your CPA, and how to avoid the pitfalls that trigger delays or denials.
What a CPA Letter Is (and Isn’t)
A focused verification, not a guarantee
A CPA letter is a short, signed document from a licensed professional confirming facts about your self-employment—time in business, nature of operations, and income derived from documents like Schedule C, balance sheets, cash flow statements, and filed tax returns. It’s often requested for mortgages, home loan approvals, refinance/refinancing, credit reviews, or leases.
Key boundaries to understand
- It is not an audit and does not promise repayment of a loan.
- It must reflect accuracy and compliance with professional standards (e.g., AICPA ethics) without overstating assurance.
- CPAs may reference GAAP, and in cross-border or consolidation settings, International Financial Reporting Standards.
Why Lenders and Landlords Ask for It
What underwriters really need
Underwriting focuses on documentation and consistency. Lenders will compare your credit history, reported income, and debts to the numbers on your bank statements and returns to the IRS. A clear CPA letter reduces friction by summarizing the essentials they evaluate during background checks and risk scoring.
Common use cases
- Mortgage or mortgage loan (purchase or refinance)
- Leases for residential or commercial space where the landlord needs income stability
- Business loan applications or lines of credit with a money lender
How to Get a CPA Letter for Self-Employment: The Step-by-Step
Step 1: Choose the right CPA
- Look for certified public accountants with mortgage and lending experience.
- Confirm licensure and good standing (state board) and note AICPA membership (American Institute of Certified Public Accountants).
- If you need SBA programs, ask whether they’re familiar with Small Business Administration documentation.
What to ask upfront
- Turnaround time, pricing, and whether your books need cleanup before they can sign.
- Whether the letter will reference GAAP or International Financial Reporting Standards if applicable.
Step 2: Assemble your documentation
Organize a single, clean package to help the CPA verify quickly:
- Two most recent tax returns (personal and business—include Schedule C if sole proprietor)
- YTD financial statements: profit and loss (income statement), balance sheets, and cash flow statements
- Last 2–6 months of bank statements (operating and savings)
- Business registration, EIN, and ownership docs
- Notes on expenses, seasonality, major clients, or one-time items
Quality control checklist
- Reconcile your books to filed returns (accuracy first).
- Make sure entity names match exactly across all documents.
- Flag any changes (ownership, structure, large debts) since your last filing.
Step 3: Clarify purpose, recipient, and scope
Tell your CPA exactly what the letter is for and who will read it.
- Purpose: CPA letter for self-employment proof (lease, credit review) or CPA letter for self-employed mortgage (purchase, refinancing)
- Recipient: Specific mortgage lenders, landlords, or institution name and address
- Scope: Time in business, basis of income verification (returns, YTD statements, bank activity), and period covered
Privacy and permissions
- Provide written authorization for your CPA to share details with the named recipient, consistent with privacy laws.
- Limit distribution to only those who need it; broad sharing can create risks of non-compliance with confidentiality policies.
Step 4: Request the right content in the letter
Ask for these elements—precise, but not overreaching:
- CPA firm identity and license on letterhead
- Your legal name, entity name, and business self-employment status
- Time in business and nature of operations
- Income summary (e.g., last two years and YTD) derived from tax returns, financial statements, and bank statements
- Statement of standards and limitations (not an audit; no assurance beyond stated facts)
- Framework reference (GAAP or International Financial Reporting Standards, if relevant)
- Purpose and named recipient (e.g., mortgage underwriter or landlord)
Tone and precision
- Avoid “guarantee” language.
- Request clear references to the documents reviewed and dates covered.
Step 5: Review the draft carefully
Even small misstatements can stall underwriting or a lease approval.
- Verify numbers, dates, and spelling of names.
- Confirm your entity type and ownership details.
- Ensure the recipient and address match the loan or lease file.
Common red flags to fix before sending
- Income figures that don’t match IRS filings or bank activity
- Missing context for big swings in revenue or expenses
- No mention of time in business or changes in structure
Step 6: Deliver securely and track status
- Many mortgage lenders prefer the CPA to send the letter directly.
- Keep a copy in your records; document when and to whom it was sent.
- If the underwriter asks follow-up questions, answer quickly and route them through your CPA when the matter concerns financial methodology.
After submission
- Expect requests for clarifications, especially around year-to-date trends or reserve assets.
- If pursuing refinance, underwriters may ask for an updated letter closer to closing.
What a Strong CPA Letter Looks Like
Suggested structure for your CPA
[CPA Firm Letterhead]
Date
To: [Lender/Underwriter or Landlord Name & Address]
Re: CPA letter for self-employment proof — [Your Full Name, Business Name]
- I am a CPA licensed in [State]. Our firm has provided accounting and tax services to [Business Name] since [Year].
- Based on our preparation/review of tax returns for [Years], and review of YTD financial statements (profit and loss, balance sheets, cash flow statements) through [As-of Date], along with recent bank statements, [Client] reported approximate net income of $[X] (20XX) and $[Y] (20XX).
- This letter is provided to assist [Recipient] in evaluating a mortgage/home loan/lease/loan application. It is not an audit, review, or examination; no opinion or assurance is expressed beyond the information stated. Figures are presented under [GAAP/International Financial Reporting Standards], as applicable.
[CPA Name], CPA
[Firm Name] | License [#] | [Address] | [Email/Phone]
For mortgage-specific use
Ask your CPA to include the phrase “CPA letter for self-employed mortgage” in the subject or reference line if your lender requests it explicitly.
Pitfalls That Trigger Delays (and How to Avoid Them)
Inconsistent numbers across documents
Underwriters compare your letter to returns and bank activity. Mismatches are the #1 cause of slowdowns.
- Fix: Reconcile first; attach a short note explaining seasonality or one-time items.
Missing context for debts and obligations
High debts or big swings in monthly outflows without explanation can spook a file.
- Fix: Provide context (e.g., inventory build, equipment purchase) and show reserves.
Scope creep and overstatements
If a letter implies assurance or uses absolute language, it can create compliance issues.
- Fix: Keep the letter factual, with clear limitations. Protect both you and your CPA from non-compliance risks.