It may be a surprise to many people, but the income verification letter template you choose to send to a potential employee or business partner will make a great deal of difference in how successful they are in your business. In this article I will explore the difference between the two types of letters and talk about why income verification letters are very important for both new and existing clients.
The Income Verification Letter is a public document that will detail to a potential business client your income from a particular month. The income verification letter will include details such as your employment status, bank account details, and details about your specific job responsibilities. Depending on your state's laws and requirements you may also be required to provide other financial information including your income tax returns and government tax forms.
The income verification letter is a standard, solid type of document that should be used in conjunction with other written documents in order to make sure all of your financial details are correct. The income verification letter helps you to not only identify your income, but it also helps to protect yourself from various types of fraud by helping you to stay up to date with the latest laws and regulations around the country.
In this piece I will outline the differences between an income verification letter and a thank you letter. In my opinion, the income verification letter should be used to help a client to create an impression of a business that is credible and professional.
A thank you letter should be used for personal business relationships only and is an inappropriate use of a template for an average client. Thank you letters are often sent by companies that they hire to provide some type of service or product, but can also be sent by anyone who has a personal relationship with the business and would like to offer their input or service to the business.
Thank you letters are always appropriate for any type of business but are rarely used as income verification letters. A thank you letter will make the average client feel like they have been thanked for their service by the business and for good reason.
When it comes to a thank you letter there are a few things that should be taken into consideration:
*Do not disclose personal information such as tax returns or any other financial information to a potential customer. They are generally used as a way to thank a client for their time and assistance, and they will not be used in a tax reporting capacity.
*In order to prove a business is legitimate and has a legitimate purpose, they should provide a very accurate and honest income statement. Make sure that the income statement is written in a way that accurately portrays the financial situation of the business.
*The last thing to remember is that the income statement is intended to be viewed by the investing public, and a solid income statement will include detailed details about the business such as where the business is located, the average salaries of all employees, and what type of equipment and financial assets the business possesses. An income statement should not be a glorified company ad.
*It is also extremely important to provide your clients with access to your tax returns. The best way to accomplish this is to provide all of your income documentation in PDF format.
Using a template for your income verification letter is never a bad idea, but there are also many ways that your income verification letter can be completed properly. Therefore, when you are creating your income verification letter template, it is always important to remember to use these three guidelines.