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 action log records who prepared each piece of financial work, who approved it, when, and what changed. In a Nigerian tax audit it does not replace your books, which the Nigeria Tax Administration Act 2025 says must be kept in English for at least six years after the year of assessment, but it shows how each figure in those books came to be.
What a tax auditor can ask you to produce
Since 1 January 2026 the main rules on records and audits sit in the Nigeria Tax Administration Act 2025 (NTAA). Section 31 requires every person, including those who owe no tax, to keep books or records with enough information on all relevant transactions to work out their tax liability. The books must be in English (a certified translation is required on demand if they are kept in another language), in any format the tax authority prescribes, and kept for not less than six years after the year of assessment to which the income relates.
Section 57 lets the tax authority require records, including records held in computers, electronic devices or cloud facilities. The time given in such a notice cannot be less than seven days from the date it is served, and you may apply in writing for more time before that period runs out. Section 58 gives an authorised officer access to business premises and records at reasonable times; a private home cannot be entered without consent or a warrant.
What an action log is, and what it is not
When software agents or staff prepare financial work, an action log is the running record of each step: a bill drafted, a payment prepared, a VAT schedule built, an approval given or refused, a figure edited. A useful entry answers five questions: what was done, by whom (person or agent), when, on what source document, and who approved it.
It is not a ledger. The auditor will still want your sales and purchase records, invoices, bank statements, payroll records, VAT and withholding tax (WHT) workings and the returns themselves. What the log adds is the trail between them. If a payment of a supplier invoice appears in the bank statement, the log shows who prepared it, the invoice it was matched to and who signed it off. That is the evidence auditors look for when they test whether controls work, not only whether totals agree.
| Typical audit question | Primary evidence | What the action log adds |
|---|---|---|
| Is this expense a real business cost? | Invoice, receipt, bank debit | Who matched the invoice to the payment and who approved it |
| Why does VAT output differ from sales? | Sales records, credit notes, VAT return | When each credit note was raised, by whom, and the approval |
| Were salaries and PAYE consistent? | Payroll register, PAYE remittance receipts | Who prepared each payroll run and any changes before approval |
| Was WHT deducted and remitted? | WHT schedules, credit notes, remittance proof | When deductions were calculated and payment prepared |
Building an audit pack from the log
Most audits start with a letter listing the periods and taxes under review. Work from that list rather than handing over everything.
- Note the periods, taxes and any specific transactions named in the notice, and the date the response is due (at least seven days from service under section 57).
- Pull the books for those periods first: ledgers, bank statements, invoices, payroll and returns filed.
- Filter the action log to the same periods and the same transaction types, and export or print the entries for each transaction the auditor names.
- Pair each log entry with its source document so the auditor can follow the chain without asking.
- List any manual corrections in the period with the reason recorded at the time. Unexplained edits draw more questions than errors that were corrected openly.
- Keep a copy of exactly what you hand over, with the date, and a note of who received it.
Worked example: a VAT difference explained
Example only. A VAT-registered trader's sales invoices for March total ₦4,300,000 before VAT. At 7.5%, VAT on those invoices would be ₦322,500, but the March return shows output VAT of ₦300,000. The auditor asks about the ₦22,500 gap.
The action log shows a credit note for ₦300,000 raised on 18 March for goods returned, prepared by the finance assistant and approved by the director the same day. Net sales are ₦4,300,000 minus ₦300,000, which is ₦4,000,000, and 7.5% of ₦4,000,000 is ₦300,000, matching the return. The credit note, the returned-goods note and the log entry together close the query in one reply.
Gaps an action log cannot fill
- Cash sales that were never recorded anywhere. The log only covers what passed through the system.
- Decisions made by phone or WhatsApp and never entered. Record the approval in the system, not only in a chat.
- Shared logins. If two people use one login, the log cannot say who did what.
- Retention. If your software keeps logs for less than six years after the year of assessment, keep your own copies.
What to check first
- Every person who prepares or approves money movements has their own login.
- Approvals are recorded in the system with a date and the approver's name.
- You can produce log entries filtered by period and transaction type.
- Log copies for closed years are stored with your books for at least six years after the year of assessment.
- Read our guide to how long to keep tax records and what to expect in a small business tax audit.
Where Pryme fits
A Pryme Business Account comes with Finance, Compliance and other agents built by Pryme Intelligence. They prepare work, a person approves anything above a ceiling you set, and actions are recorded. The app shows the formats in which that record can be downloaded; if an auditor needs something specific, ask through contact. You can also issue verifiable statements and receipts with VerifyDoc.ai so a third party can confirm they are genuine and unaltered. For what a good log should hold, see audit trails for AI agents.
Questions people ask
How long must a Nigerian business keep tax records?
The Nigeria Tax Administration Act 2025, section 31(5), says books and records must be kept for not less than six years after the year of assessment to which the income relates.
Can the tax office ask for records on my computer or in the cloud?
Yes. Section 57 of the NTAA 2025 covers records stored in computers, electronic devices or cloud facilities.
How many days do I get to respond to a tax audit notice?
The time in the notice cannot be less than seven days from service under section 57(2), and you can apply in writing for an extension before it expires.
Is an agent's action log enough on its own for a tax audit?
No. It supports your books, invoices, bank statements and returns by showing who prepared and approved each item, but it does not replace them.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
- BusinessDay: Nigeria tax record retention, know the rules (2 Sep 2025) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria corporate tax administration (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.