Home – New Forums Money matters New Pty Ltd and Accountant Letter

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  • #978913
    Micatio
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    Hi All,

    I’ve just setup my Pty Ltd company just under 2 months.

    At the moment I’m still developing the company however my bank (Home Loan application) wants an Accountant’s Letter to confirm its trading profitably or has no outstanding liabilities.

    I havent yet found an accountant yet, any suggestions and costs?

    #1110595
    Anonymous
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    Hi Micatio,

    Exciting times for you! I hope you get the info you need soon.

    Good luck with both the business and the home loan,
    Jayne

    #1110596
    Cjay
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    Hi Miacatio,

    Essentially you need to find yourself an accountant (preferably one you wish to fullfil your accounting needs in the future. The accountant then looks at your current cashflow and if you’re cashflow positive or neutral (making money or nothing), then a letter can be written stating as such.

    Banks generally want two full years of financials for Pty Ltd Co. directors when they go for homeloans. There are some banks which accept less but there are other issues. Through showing the company doesn’t require constant financial input from yourself, the bank is willing to ignore its potential income and not count it as a liability.

    Can’t speak of costs, best thing would be to get calling and go from there.

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