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
A bank reconciliation compares your own record of money in and out (the cash book) with the bank statement for the same period, ticks off every item that appears in both, and explains every item that appears in only one. When the adjusted cash book balance equals the adjusted bank balance, the month is reconciled.
Why bother every month
Your bank statement shows what the bank processed; your cash book shows what you think happened. They differ for ordinary reasons, such as timing, charges and forgotten entries, and for worrying ones, such as a fake transfer alert, a duplicated payment or a staff member diverting money. Monthly reconciliation catches both while the trail is still fresh. It also keeps your books in the shape the law expects: section 31 of the Nigeria Tax Administration Act 2025 requires records with enough information on all relevant transactions to determine tax liability, kept for at least six years.
Do one reconciliation per account. Many Nigerian businesses run a main bank account, a second bank, a POS settlement account and one or more fintech accounts. Each needs its own.
The monthly steps
- Download the statement for the full month, from the first to the last day, in a format you can sort (CSV or Excel is easier than PDF).
- Bring your cash book up to date for the same period: every sale banked, every transfer out, every cash deposit.
- Agree the opening balance. Last month's reconciled closing balance should equal this month's opening. If not, fix last month first.
- Tick matching items on both sides: same amount, similar date, same customer or supplier. Sorting both lists by amount speeds this up.
- List what is only on the statement: bank charges, SMS alert fees, stamp duty, card maintenance, interest, customer transfers you did not record, reversals.
- List what is only in the cash book: payments you made that the bank has not yet processed, deposits made on the last day that appear next month, and entries made in error.
- Update the cash book for the genuine statement-only items (charges, unrecorded receipts).
- Prepare the reconciliation statement showing the bank balance adjusted for timing items.
- Investigate anything left over before you close the month.
Worked example
Example only. A pharmacy's cash book shows ₦2,480,000 at 31 October. The bank statement shows ₦2,615,500. The unmatched items are:
- A ₦150,000 transfer to a supplier entered on 31 October that the bank shows on 1 November.
- A ₦80,000 cash lodgement made late on 31 October, not yet on the statement.
- ₦4,500 of bank charges on the statement, not in the cash book.
- A ₦70,000 customer transfer on the statement that nobody recorded.
Step 1: correct the cash book
| ₦ | |
|---|---|
| Cash book balance | 2,480,000 |
| Add: customer transfer not recorded | 70,000 |
| Less: bank charges | (4,500) |
| Adjusted cash book | 2,545,500 |
Step 2: adjust the bank balance for timing
| ₦ | |
|---|---|
| Bank statement balance | 2,615,500 |
| Less: payment not yet processed | (150,000) |
| Add: lodgement not yet credited | 80,000 |
| Adjusted bank balance | 2,545,500 |
Both sides now show ₦2,545,500. The two timing items should clear in the first days of November; check that they do.
Handling unmatched items
| Item | What to do |
|---|---|
| Bank charges and levies | Record them as an expense in the cash book |
| Unknown credit | Find the sender before treating it as a sale; it may be a mistaken transfer you must return |
| Payment in cash book not on statement after a week | Check with the bank; it may have failed or been reversed |
| Same amount twice on statement | Possible duplicate; raise a dispute with the bank promptly |
| Credit you recorded but the bank never shows | Treat it as a possible fake alert; compare with the statement, not the SMS |
| Difference you cannot explain | Do not plug it. Carry it as a reconciling item and keep investigating |
Keeping the evidence
Save each month's statement, your reconciliation sheet and the supporting documents together. A BusinessDay guide to tax record retention (September 2025) lists the records a business should keep for at least six years, including receipts and invoices, withholding tax credit notes, payroll records and VAT documents. A reconciliation that points to each of these makes any later query from a tax officer, auditor or lender quick to answer. File by month and by account so anyone can find a given statement in minutes.
Making it faster
- Ask customers to use a reference such as the invoice number when they transfer.
- Use one account per purpose, for example sales collection separate from supplier payments.
- Reconcile weekly in busy months; small batches are easier than a month of transfers.
- Keep a short note on each reconciling item so the next person understands it.
For matching high volumes of transfers, see payment reconciliation in Nigeria, and for what software can and cannot do, AI bank reconciliation. Reconciled figures also feed a reliable 13-week cash flow forecast.
Where Pryme fits
Pryme's virtual accounts can give each customer or invoice its own account details, so incoming transfers identify themselves. The Finance agent prepares a draft reconciliation for a person to review and approve.
Questions people ask
What is bank reconciliation in simple terms?
Checking that your own record of money in and out agrees with the bank statement, and explaining every difference.
How often should a small business do bank reconciliation?
At least monthly for every account. Weekly is better when you have many transfers.
What causes differences between the cash book and bank statement?
Timing (payments or deposits not yet processed), bank charges not recorded, customer transfers not entered, errors and, occasionally, fraud.
What should I do with money in my account I cannot identify?
Do not treat it as income until you know who sent it. Ask your bank for the sender details; a mistaken transfer may have to be returned.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy), sections 11, 22 and 31 · accessed Oct 2026
- Nigeria tax record retention: know the rules (BusinessDay, 2 Sep 2025) · 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.