What Is a CPA Net Worth Statement, and What Will a Co-op Board Ask For?

The short answer

A CPA net worth statement is a letter signed by a licensed CPA that lists your assets and debts and your net worth as of a stated date. Co-op boards often ask for a statement of assets and liabilities in the purchase package, and a CPA-signed one gives them a clear, checkable summary.

If you're buying into a co-op, you've probably been handed a board package and a long list of what to include. This guide explains what a net worth statement is, why boards and others ask for one, how a CPA-prepared statement compares with filling in the board's own form, and what to sort out before you order one.

What a net worth statement is

Net worth is what you own minus what you owe. A net worth statement lists your assets: bank, brokerage and retirement accounts, and on a fuller statement, real estate, business interests and trusts. It lists your debts: mortgages, car and student loans, credit cards and lines of credit. The difference between the two is your net worth, as of a specific date.

Lenders and boards often call the same summary a personal financial statement. The format varies, but the idea doesn't. A CPA net worth statement is that summary prepared and signed by a licensed CPA from your documents, so the reader doesn't have to assemble it from a stack of account statements.

People sometimes search for a "certified net worth letter." It is worth being precise about what the CPA's signature means. The statement is prepared from the documents you provide, and it is not an audit or a review. The CPA gives no assurance beyond what the statement says.

Why co-op boards, condo boards, landlords and lenders ask

Anyone who needs confidence in your financial standing before saying yes may ask for one:

• Co-op boards. Buying into a co-op usually means buying shares in the corporation that owns the building, and the board approves each buyer. Purchase and board packages often ask for a statement of assets and liabilities.
• Condo associations. Some ask for proof of financial standing for purchase approvals or applications. Requirements vary, so check.
• Landlords. Lease applications, guarantors and management companies sometimes want more than a pay stub.
• Lenders. A bank or private lender may ask for a personal financial statement.

What goes in a board financial package

Every board is different, and the instructions from the managing agent or the board itself control. In general terms, a co-op purchase package often asks for some mix of a financial statement of assets and liabilities, recent tax returns, recent account statements that support the figures, proof of income or employment, reference letters, and the contract and financing documents for the purchase.

Some boards supply their own financial statement form and ask for supporting documents behind every figure. Some ask for figures as of a particular date, or for documents no older than a set age. Read the instructions line by line before you gather anything, and if something is unclear, ask the managing agent rather than guessing.

A CPA-signed statement vs. the board's own form

Many boards provide their own form. If yours does, the question is whether it will accept a CPA-prepared statement instead of the form, or alongside it. Ask before you order. Some boards accept either, and some require their own form no matter what.

Where a CPA statement is accepted, it has practical advantages. The figures are taken from your documents by a licensed CPA rather than typed in by you, joint accounts are counted once, and the board gets a signed summary it can read quickly instead of reconciling dozens of pages. Ours also carries a Statement ID the board can check online.

Filling in the board's form yourself costs nothing and is exactly what they asked for, so if the board requires it, do that. Some applicants submit both: the board's form, with a CPA statement attached in support. That is a question for your managing agent.

Standard or Complex: what decides it

With us, the choice comes down to what you own:

• Standard, $150 per person: bank, brokerage and retirement accounts, plus your debts.
• Complex, $250 per person: also real estate, business interests or trusts.

Real estate, business interests and trusts don't come with a monthly statement that shows their value, so a Complex statement needs you to supply valuations: for each property, a tax assessment, appraisal or broker opinion, and for each business interest or trust, a document showing its value. The CPA works from those documents, so better valuations make a stronger statement.

If you choose Standard and the CPA finds real estate, a business interest or a trust that needs a Complex statement, you'll be asked to pay the difference ($100 per person, or $125 for a joint statement) before it is issued. Choosing the right one up front saves that step.

Couples: one joint statement or two?

Most couples buying or renting together need one joint statement: both names, your combined assets and debts, with joint accounts counted once. A joint statement is $200, or $325 if it is Complex. Each of you still uploads your own photo ID and documents.

If the board asks for a separate statement for each person, order separate statements instead at the per-person price, and each of you gets your own. When in doubt, the board's instructions decide.

How recent your documents should be

Boards and lenders care about how current the figures are. Check your board's instructions for any required date or document age, and follow them. For our statements, upload your most recent bank, brokerage and retirement statements (your board will tell you how recent), plus a statement for every debt and a current credit report for each person, which is free from AnnualCreditReport.com.

Tell us the date you need the statement by when you order. Statements are typically issued within 24 hours of complete documents, and Rush (+$50 per statement) is issued within 6 hours. You pay first, then upload, and a photo ID is required for each person. The clock starts once every document is in, so upload everything at once.

What a CPA statement is not

• Not an audit or a review. The CPA prepares the statement from the documents you provide and gives no assurance beyond what the statement says.
• Not a guarantee of approval. Whether a board, landlord or lender accepts the statement, and whether they approve you, is their decision.
• Not a substitute for the board's instructions. If they require their own form, a specific date or particular documents, those requirements come first.

This guide is general information, not legal or tax advice. Check what your board requires before you order.

How the board can check it

Every statement carries a unique Statement ID and a QR code. The board, landlord or lender can look it up on our statement lookup page to see whose statement it is and who it was prepared for, the dates, and the signing CPA's name, firm and license number. A digital fingerprint lets them confirm their copy is the original, unaltered file. The lookup never shows your financial figures.

Statements are prepared and signed by Christopher A. Smith, CPA, of 317 Accounting, PC, Indiana license CP12600077. Anyone can verify the license on the state's public search page by entering that number.

Renting rather than buying? Landlords more often want proof of income than net worth. Our guide to proving income to a landlord when you're self-employed covers that.

Frequently Asked Questions

What is a CPA net worth statement?

It is a letter signed by a licensed CPA that lists a person's assets and debts and the resulting net worth as of a stated date. It is prepared from the documents the person provides, such as bank, brokerage and retirement statements, loan statements and a credit report. It is not an audit or a review.

Will a co-op board accept a CPA net worth statement?

Many boards accept a CPA-prepared statement, but requirements vary and some require their own form. Check the board's instructions, usually sent through the managing agent, and confirm they will accept a CPA-prepared statement before you order. Acceptance and approval are the board's decision.

Is a personal financial statement the same as a net worth statement?

Generally, yes. Many lenders and boards use "personal financial statement" for the same summary of assets and debts. A CPA net worth statement is that summary prepared and signed by a licensed CPA from your documents.

How much does a CPA net worth statement cost?

With AccreditedNow, $150 per person for a Standard statement (bank, brokerage and retirement accounts plus debts) or $250 per person for a Complex statement that also includes real estate, business interests or trusts. One joint statement for a couple is $200, or $325 if Complex. Rush is $50 more per statement.

Should a couple get one joint statement or two?

Most couples applying together need one joint statement, with both names, combined assets and debts, and joint accounts counted once. If the board asks for a separate statement for each person, order separate statements instead. Each person uploads their own photo ID and documents either way.

More guides: all AccreditedNow guides.