If you are in need of a financial reference letter from a certified public accountant (CPA), there are several important factors to keep in mind. A CPA’s letter is often used to verify a person’s income, assets or financial status to potential employers, financial institutions, or other interested parties. In this article, we will explain the key points that should be covered in a financial reference letter from a CPA, provide you with some examples, and answer some frequently asked questions.
Tips for Writing a Financial Reference Letter From a CPA
Before we dive into some examples, here are some tips to help you write a strong financial reference letter from a CPA:
Title: Keep It Simple
Make sure the title of the letter is simple, clear, and easy to understand. For example, “Financial Reference Letter from CPA” or “Certification of Income and Assets”.
Explanation: The title should be straightforward and indicate the primary purpose of the letter. It should not be too lengthy or complex.
Examples of Financial Reference Letters from CPA
Verification of Income
Greeting: To Whom It May Concern,
Letter Body: I am writing this financial reference letter on behalf of [Name]. As a certified public accountant, I have reviewed [Name]’s tax returns and financial statements for the past two years. Based on my analysis, [Name] earned a gross income of [Amount] in the previous year. I can confirm that this income is accurate and has been reported correctly. Please feel free to contact me if you have any further questions.
Complimentary Close: Sincerely,
Verification of Assets
Greeting: Dear [Recipient Name],
Letter Body: I am writing this letter on behalf of [Name] to verify his/her assets. As a certified public accountant, I have reviewed his/her financial statements and tax returns for the past two years. Based on my analysis, [Name] has [Amount] in liquid assets, which includes savings accounts, money market accounts, and stocks. I can confirm that these assets are accurate and have been reported correctly. Please feel free to contact me if you have any further questions.
Complimentary Close: Respectfully,
Certification of Financial Statements
Greeting: Dear Sir/Madam,
Letter Body: I am writing to certify the financial statements of [Name]. As a certified public accountant, I have reviewed the financial statements for the past two years and have found them to be accurate and complete. The financial statements include [list of items], all of which have been reported correctly. Please feel free to contact me if you have any further questions.
Complimentary Close: Best Wishes,
Verification of Business Income
Greeting: To Whom It May Concern,
Letter Body: I am writing to verify the business income of [Business Name]. As a certified public accountant, I have reviewed the financial statements and tax returns of the business for the past two years. Based on my analysis, the business had a gross income of [Amount] in the previous year. I can confirm that this income is accurate and has been reported correctly. Please feel free to contact me if you have any further questions.
Complimentary Close: Regards,
Verification of Rental Income
Greeting: Dear [Recipient Name],
Letter Body: I am writing to verify the rental income of [Name]. As a certified public accountant, I have reviewed [Name]’s tax returns and financial statements for the past two years. Based on my analysis, [Name] earned a gross rental income of [Amount] in the previous year. I can confirm that this income is accurate and has been reported correctly. Please feel free to contact me if you have any further questions.
Complimentary Close: Yours Sincerely,
Verification of Self-Employment Income
Greeting: Dear [Recipient Name],
Letter Body: As a certified public accountant, I am writing to verify the self-employment income of [Name]. I have reviewed [Name]’s tax returns and financial statements for the past two years. Based on my analysis, [Name] earned a gross income of [Amount] in the previous year through self-employment. I can confirm that this income is accurate and has been reported correctly. Please feel free to contact me if you have any further questions.
Complimentary Close: Best Regards,
Verification of Child Support Income
Greeting: To Whom It May Concern,
Letter Body: I am writing to verify the child support income of [Name]. As a certified public accountant, I have reviewed [Name]’s financial statements and tax returns for the past two years. Based on my analysis, [Name] received $[Amount] in child support in the previous year. I can confirm that this income is accurate and has been reported correctly. Please feel free to contact me if you have any further questions.
Complimentary Close: Best Wishes,
Frequently Asked Questions
What should be included in a financial reference letter from a CPA?
A financial reference letter from a CPA should include the name of the person being referred to, the date, the CPA’s contact information, the purpose of the letter, details about income, assets or financial statements, and a statement of accuracy and completeness.
Who can request a financial reference letter from a CPA?
A financial reference letter from a CPA can be requested by an employer, financial institution, landlord, or any other interested party who needs to verify a person’s income, assets or financial status.
Can I edit the examples provided to fit my specific needs?
Yes, the examples provided are meant to be a starting point. You can edit them as needed to fit your specific situation.
How long should a financial reference letter from a CPA be?
A financial reference letter from a CPA should be one to two pages long, depending on the amount of detail needed to verify the person’s income, assets or financial status.
What is the purpose of a financial reference letter from a CPA?
The purpose of a financial reference letter from a CPA is to verify a person’s income, assets or financial status to potential employers, financial institutions, or other interested parties.
Is a financial reference letter from a CPA legally binding?
No, a financial reference letter from a CPA is not legally binding. It is simply a letter of reference that verifies a person’s income, assets or financial status.
How much does it cost to get a financial reference letter from a CPA?
The cost of a financial reference letter from a CPA varies depending on the CPA’s hourly rate, the complexity of the letter, and the amount of detail needed. It is best to contact a CPA directly to discuss pricing.
Conclusion
A financial reference letter from a CPA is an important document that can help verify a person’s income, assets or financial status. By following the tips and examples provided in this article, you can create a strong letter that meets your specific needs. If you have any further questions or need additional assistance, please do not hesitate to contact a certified public accountant in your area.