Quick answer
A business lender usually needs three things from an accountant: recent financial statements and tax returns showing income and lodgement status; current-year figures such as a year-to-date P&L and balance sheet; and explanations of anything unusual, from add-backs to an ATO balance. Exactly how much depends on the loan type — cash flow lenders lean on bank statements and BAS, larger term and secured loans lean on full financials.
Key points
- Financial statements and tax returns for the last one or two years are the foundation.
- Year-to-date figures bridge the gap between the last return and today.
- An ATO account statement answers the 'any tax debt?' question before it's asked.
- A short covering note explaining unusual items saves days of back-and-forth.
- Core
- Financials + tax returns
- Current
- YTD P&L and balance sheet
- Tax position
- ATO account statement
- Context
- Covering note
When a client tells you they’re applying for finance, the next email is often a lender’s document list. Some items are obvious; others leave you wondering why the lender wants them or how much detail is enough. This page sets out what lenders generally need from an accountant, why they need it, and how to present it so the file moves quickly.
The foundation: statements and returns
Almost every business lender starts with the same core documents:
- Financial statements for the last one or two completed financial years — profit and loss, balance sheet, and notes where prepared
- Business tax returns for the same years
- Notices of assessment confirming the ATO has processed the returns
- Individual tax returns for directors or owners, where they guarantee the loan or the business is a sole trader or partnership
Business.gov.au’s own list of what lenders may request includes financial reports, cash flow statements where available, financial forecasts and the owner’s personal financial information. The format you already prepare for lodgement is usually fine.
Bridging to today: current-year figures
A tax return describes a year that may have ended many months ago. Lenders want to know the business is still trading at least as well. That’s where you come in with:
- Year-to-date profit and loss, ideally to the last completed month
- Year-to-date balance sheet, so they can see current debts and working capital
- A comparison to the same period last year, if it’s easy to produce
Label draft or unreviewed figures clearly. A lender would much rather see “management accounts, unaudited, to 30 September” than discover later that the figures were rough. Our page on management accounts for lenders covers format and level of detail.
The tax position: ATO statements
Lenders routinely ask whether the business owes the ATO. You can answer before they ask by providing:
- An ATO account statement or transaction history for the activity statement and income tax accounts
- Details of any payment plan and whether it’s being kept
- Confirmation that lodgements are up to date
The ATO’s Online services for business lets you download transactions in CSV or HTML format, which makes this straightforward. See how lenders read an ATO statement of account.
Context: the covering note
This is where accountants add the most value, and it’s the item most often missing. A one-page note that explains:
- Why profit moved significantly between years
- Any add-backs — one-off costs, non-cash items like depreciation, owner expenses run through the business
- Related-party loans and what they represent
- How any ATO balance arose and the plan for it
- Anything about the structure — trusts, multiple entities, recent restructures
A good note turns a confusing file into a clear one. It’s different from a formal accountant’s letter, which confirms specific facts; see writing an accountant’s letter for that.
How the request changes by loan type
| Loan type | What lenders usually lean on | Accountant’s role |
|---|---|---|
| Unsecured cash flow, smaller amounts | Bank statements, BAS turnover | Light — confirm lodgements, explain any ATO balance |
| Line of credit | Bank statements, BAS, recent P&L | Moderate — YTD figures help sizing |
| Larger unsecured term loan | Full financials, tax returns, YTD | Substantial — statements, returns, covering note |
| Property-secured business loan | Property security plus income evidence | Varies — full or lighter documentation depending on product |
| Low-documentation secured loan | Property security, accountant’s letter or BAS | Targeted — a letter confirming specific facts |
As a guide, trading-based facilities without property tend to sit between $5k and $500k, while property-backed loans can range from $20k to $5m. For how each document links to each loan type, see the Linking the numbers hub.
Presentation that speeds things up
- One PDF per document, clearly named. “ABC Pty Ltd — FY25 Financial Statements.pdf” beats “Scan_0042.pdf”.
- Consistent figures. If the YTD P&L disagrees with BAS turnover, explain why (GST, timing, accruals).
- Entity clarity. If there are several entities, show which one is borrowing and how the others relate.
- Send once, completely. Partial uploads create follow-up questions.
Personal information for guarantors
Where directors will guarantee the loan, lenders usually want some personal information too, and accountants often hold part of it. Typical requests include:
- Individual tax returns and notices of assessment for each guarantor
- A statement of personal assets and liabilities
- Details of other entities the guarantors control, and any debts those entities carry
If the client has a financial planner, coordinate so the asset and liability statement is consistent with what the planner holds.
What not to include
You don’t need to send working papers, general ledgers or every bank reconciliation unless asked. Over-supplying can slow a file just as much as under-supplying, because someone has to read it all.
When the lender asks follow-up questions
Expect at least one round of questions on larger files. Answer them directly, attach the supporting document, and copy your client in. If a question goes beyond what your client has authorised you to discuss, check with them first.
Help your client get matched well
If your client is ready, the cleanest route is through the standard enquiry with a note that you referred them. Start the enquiry with your client and include your name and firm. There’s no credit check when they enquire, their file is matched to one fitting lender instead of being shopped around, and a specialist calls them before contacting you. Encourage them to answer accurately — especially about amount, purpose and property — so the right lender is chosen first time. Begin the referral.
Frequently asked questions
Do lenders want signed financial statements?
Many prefer financial statements on the firm's letterhead or with a compilation report, as prepared for the tax return. Unsigned draft figures are usually accepted for year-to-date periods if clearly labelled.
How recent do year-to-date figures need to be?
As recent as practical — ideally to the end of the last completed month or quarter. If the last lodged return is more than about nine months old, expect a lender to ask for them.
Should I send the tax return or just the notice of assessment?
Often both. The return shows the detail; the notice of assessment confirms the ATO has processed it. Some lenders accept one or the other depending on the loan.
What if the client's returns aren't lodged yet?
Say so up front and provide management accounts and BAS instead. Some lenders accept an accountant's letter confirming income for a period. See our page on interim financials.
Does every loan need accountant documents?
No. Smaller unsecured cash flow facilities are often assessed largely on bank statements and BAS. Accountant documents matter more as amounts rise or files get complex.