AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
An aged debtors list shows every customer who owes you, split into not-yet-due, 1-30, 31-60, 61-90 and over-90-day columns. Update it weekly, give every overdue row a dated next action, and set a rule in advance for when credit stops, for example at 61 days. In Lagos, debts up to ₦5m can go to the Small Claims Court.
An aged debtors list is a single sheet that shows who owes you, how much, and for how long. Sales on credit are normal in Nigerian trade, from distributors supplying supermarkets to agencies billing corporate clients. The list turns a vague sense that "people owe us money" into a weekly decision: who to call, who to stop supplying and who to pass to a lawyer.
The template
Copy these columns into a spreadsheet or exercise book. One row per customer, with every unpaid invoice for that customer summed into the right age column. Age is counted from the invoice due date, not the invoice date.
| Customer | Contact | Credit limit | Not yet due | 1-30 days overdue | 31-60 days | 61-90 days | Over 90 days | Total owed | Last payment date | Next action and date |
|---|---|---|---|---|---|---|---|---|---|---|
| [Customer name] | [Phone / email] | ₦[ ] | ₦[ ] | ₦[ ] | ₦[ ] | ₦[ ] | ₦[ ] | ₦[ ] | [dd/mm/yyyy] | [Call / letter / hold supply / legal] |
| TOTALS | ₦[ ] | ₦[ ] | ₦[ ] | ₦[ ] | ₦[ ] | ₦[ ] | ||||
| % of total | [ ]% | [ ]% | [ ]% | [ ]% | [ ]% | 100% |
Add a "WHT receivable" column if your customers are companies that deduct withholding tax. A gap equal to 2%, 5% or 10% of an invoice is usually tax deducted, not an unpaid balance, and should be chased as a receipt rather than as cash. A separate guide covers what to do when a customer pays less than the invoice.
The weekly routine
- Every Monday, record last week's payments against the invoices they settle, oldest first unless the customer says otherwise.
- Move each balance into its new age column.
- Sort by the over-90 column, then 61-90, so the oldest debts sit at the top.
- Fill in "Next action and date" for every row with anything overdue. A row with no action is a debt no one owns.
- Compare total owed to last week's figure. If it grows faster than sales, credit control is slipping.
Deciding who to chase and when to stop supplying
Set rules in advance so the decision is not personal each time. The thresholds below are an example policy; adjust them to your trade and margins.
| Age of oldest unpaid invoice | Action (example policy) |
|---|---|
| Not yet due | Friendly reminder three days before due date |
| 1-30 days | Call, then written reminder; confirm the customer has the invoice and no dispute |
| 31-60 days | New orders on cash or transfer before delivery only; agree a dated payment plan in writing |
| 61-90 days | Stop supplying on credit; formal demand letter |
| Over 90 days | Letter before action; consider small claims or a lawyer; review whether the debt is recoverable |
Templates for each stage are in invoice reminder letters, a payment plan agreement and letter before action.
The court route for smaller debts
In Lagos, the Small Claims Court handles liquidated money claims of up to ₦5,000,000, excluding interest and costs, under the Lagos State Practice Direction on Small Claims Court 2023. The claimant first sends a letter of demand on Form SCA 1, which gives the debtor 14 days. Your aged debtors list, invoices and delivery notes become the evidence. See the Lagos small claims guide.
Worked example
Example only. A drinks distributor in Port Harcourt has these balances on Monday.
| Customer | Not due | 1-30 | 31-60 | 61-90 | 90+ | Total |
|---|---|---|---|---|---|---|
| Shop A | ₦400,000 | ₦0 | ₦0 | ₦0 | ₦0 | ₦400,000 |
| Hotel B | ₦600,000 | ₦350,000 | ₦250,000 | ₦0 | ₦0 | ₦1,200,000 |
| Bar C | ₦0 | ₦0 | ₦0 | ₦180,000 | ₦270,000 | ₦450,000 |
| Totals | ₦1,000,000 | ₦350,000 | ₦250,000 | ₦180,000 | ₦270,000 | ₦2,050,000 |
Bar C's whole ₦450,000 is over 60 days: under the example policy, credit stops and a demand letter goes out today. Hotel B is the larger risk by size: ₦250,000 is already 31-60 days, so its next order should be paid before delivery. Over-60 debt is ₦450,000 of ₦2,050,000, about 22%.
Reading the percentages
The bottom row of the template matters more than any single customer. If the share of debt over 60 days creeps up month on month, the business is lending more to its customers than it planned, often funded by delaying its own suppliers. Two numbers worth tracking each month are the over-60 share and the total owed divided by the last month's credit sales. When either rises for two months running, tighten terms for new customers before chasing old ones harder.
Disputed invoices
Mark a disputed invoice with a note in the action column and keep it in its age bucket. Hiding it in a separate list makes the sheet look healthier than it is. Resolve the dispute first, issue a credit note if part of the invoice was wrong, then chase the balance.
Tax and records
- Keep the list with your invoices. The Nigeria Tax Administration Act 2025 s.31 requires books and records to be kept for at least six years after the year of assessment.
- PwC's summary of Nigerian corporate deductions (reviewed May 2026) notes that bad debts incurred in the trade are deductible, while related-party bad debts are excluded. The list helps show when and why a debt was judged bad.
Where Pryme fits
With Pryme's invoicing and a dedicated account number per customer through virtual accounts, payments land against the right customer, and the Finance agent can prepare the weekly aged list and draft reminders for a person to approve. For the wider approach, see chasing invoices well.
Questions people ask
What is an aged debtors report?
A list of every customer who owes you, with balances split by how long they have been overdue, usually 1-30, 31-60, 61-90 and over 90 days, so you can see which debts need action first.
How often should a small business update its debtors list?
Weekly is a good rhythm for most Nigerian businesses selling on credit. Monthly is too slow to stop supplying a customer before the debt grows.
When should I stop supplying a customer who owes me?
Set the rule in advance. A common policy is to move to payment before delivery at 31-60 days overdue and stop credit at 61-90 days.
Can I take a debtor to small claims court in Lagos?
Yes, for liquidated money claims up to ₦5m excluding interest and costs, under the 2023 Practice Direction, after a Form SCA 1 demand giving 14 days.
Sources
- Lagos State Practice Direction on Small Claims Court 2023 (copy on lagosmepb.org) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- Nigeria: corporate deductions (PwC Worldwide Tax Summaries, reviewed 29 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.