Accountants Letter


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Who Is This For

It is often a requirement during the tendering process to prove financial stability. Generally the Buyer requests the last three year’s audited financial records. However, for a small to medium-size company, this can be an onerous requirement.

Most private companies do not get their financial records audited, and there is no legal obligation to do so. In addition, it is none of the Buyer’s business what the company’s revenue and profitability is. They are merely attempting to ensure the proponent is not teetering on the edge of insolvency prior to engaging them.

What to do in this situation

In the above situation we generally advise our clients to ask the Buyer if a letter from their Accountant attesting to their financial solvency will suffice. We have never been told no, since this information is generally the limit of the procurement team’s inquiry. Send this simple draft template to your Accountant and they will do the rest.

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