1) Never submit a self-prepared P&L — it must be CPA/EA/CTEC. 2) Line up your CPA early; it's the foundation. 3) Choose the right period (12 vs 24 months). The rest are below. See Requirements.
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Statement mistakes
1. Submitting a self-prepared P&L
QuickBooks exports & spreadsheets are not accepted. Must be CPA/EA/CTEC.
2. Choosing the wrong period
12 vs 24 months can swing qualifying income six figures — compare both.
3. A P&L that ignores add-backs
Depreciation & one-time purchases can often be added back — ask your preparer.
4. Deposits that don't match the P&L
On bank-statement paths, big mismatches raise flags — reflect real cash flow.
CPA & verification mistakes
5. Not lining up your CPA early
The #1 delay. Confirm they'll prepare & sign before you apply.
6. Not framing the ask to a hesitant CPA
They're not guaranteeing the loan — only verifying the P&L & active business.
7. Missing letterhead / license / signature
The P&L must be on letterhead with license number, signature & date.
8. No proof of a 2-year business
Have your Sec. of State filing, license, or DBA ready.
Planning mistakes
9. Assuming P&L = bank statement pricing
P&L often prices better via CPA credibility. Rates →
10. Taking the first non-QM quote
Make specialty investors compete.
11. Fixing a price before pre-check
Confirm your P&L income first; it sets your real budget. Calculator →
The Don't / Do checklist
| Don't | Do |
|---|---|
| Submit a self-prepared P&L | Use a licensed CPA/EA/CTEC preparer |
| Pick 12 or 24 months blindly | Compare both; take the stronger |
| Ignore legitimate add-backs | Ask your preparer about depreciation |
| Let deposits contradict the P&L | Reflect real, verifiable cash flow |
| Line up your CPA last | Confirm they'll prepare & sign early |
| Spring the request on a wary CPA | Frame it: verify only, not guarantee |
| Skip letterhead/license/signature | Ensure the P&L is fully credentialed |
| Forget business proof | Have Sec. of State / license / DBA ready |
| Assume bank-statement pricing | Expect P&L to often price better |
| Take the first quote | Make specialty investors compete |
| Fix a price before pre-check | Confirm P&L income first |
P&L mistake FAQs
Most common mistake?
Submitting a self-prepared P&L — it must be CPA/EA/CTEC.
Must the P&L match deposits?
On bank-statement paths, yes — big mismatches raise flags.
12 or 24 months?
Compare both; the right period can swing qualifying income six figures.
Line up CPA early?
Yes — a slow/hesitant preparer is the #1 delay.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties. Nothing here is tax advice.