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
Record each naira transaction in euros at the exchange rate for the day it happens: Italian tax law (art. 110 TUIR) values foreign-currency income and costs by reference to the date they are received or incurred, and IAS 21 uses the spot rate at the transaction date. When you later pay or collect at a different rate, the difference is an exchange gain or loss in that period. Italian rules also allow multi-currency bookkeeping, so you can keep a naira ledger alongside the euro books.
The principle: one rate per transaction date
An Italian company keeps its books in euros. When it sells to a Nigerian customer, buys from a Nigerian supplier or holds a naira bank account, each item has to be expressed in euros. Article 110, paragraph 2, of the TUIR (as updated to 26 September 2026 on Brocardi) values income, proceeds, expenses and charges in foreign currency by reference to the date they are received or actually incurred, and it permits multi-currency accounting (contabilità plurimonetaria).
International standards say the same. IAS 21, the IFRS standard on foreign exchange, records a foreign-currency transaction at the spot rate at the date of the transaction (paragraph 21), and allows an average rate for a week or month if rates do not fluctuate significantly (paragraph 22). Many Italian companies report under Italian accounting standards rather than IFRS, so ask your commercialista which framework applies to you; the logic is the same.
Where the rate comes from
For tax purposes, art. 110 paragraph 9 provides that the exchange rate for each month is set by the authorities, and also allows alternative rates from independent international providers, provided they can be verified. Our separate guide on which rate to use for naira invoices deals with the source and the date in detail. Whatever you choose, write the source and the rate next to each entry, and use the same method every time.
Worked example (illustrative rates)
On 10 March your company invoices a Lagos client ₦2,000,000. Assume the rate that day is €1 = ₦1,700. On 20 April the client pays, and the rate is €1 = ₦1,800.
| Date | Entry | Naira | Rate (example) | Euro |
|---|---|---|---|---|
| 10 Mar | Sale and receivable | ₦2,000,000 | 1,700 | €1,176.47 |
| 20 Apr | Cash received | ₦2,000,000 | 1,800 | €1,111.11 |
| 20 Apr | Exchange loss | €65.36 |
The sale stays at €1,176.47 in revenue. The €65.36 is a separate exchange loss, because the naira weakened between invoice and payment. If the naira had strengthened, you would book a gain.
Year-end balances
At the year end you may still hold naira in a bank account, or have unpaid naira invoices. IAS 21 (paragraph 23) translates monetary items, such as cash, receivables and payables, at the closing rate, and keeps non-monetary items carried at cost at the historical rate; differences go to profit or loss (paragraphs 28 and 29). Italian tax treatment of these year-end differences has its own rules: paragraph 3 of art. 110 was repealed by legislative decree 192 of 13 December 2024, so ask your adviser how the current text applies to unrealised differences.
Naira-specific points
- More than one rate: if quoted rates differ, IAS 21 (paragraph 26) uses the rate at which the cash flows could actually have been settled. Record the rate your bank or provider actually applied when you convert.
- Naira inside Nigeria: under the CBN's 2026 FX Manual, as reported by TheCable, the naira is the legal tender for transactions conducted within Nigeria, and domestic deals between Nigerian entities are priced and settled in naira. A Nigerian subsidiary's books will therefore be naira-first.
- Bank charges: keep the fee lines from each conversion and transfer separate from the exchange difference, so they can be booked as costs.
Common mistakes
- Booking the sale at the rate on the payment date instead of the invoice date, which hides the exchange difference inside revenue.
- Netting bank fees against the exchange loss, so neither figure is right.
- Using a rate from a website with no date or source, which is hard to defend in a check.
- Treating a naira transfer to a Nigerian subsidiary as an expense when it is a loan or capital, which belongs on the balance sheet.
- Forgetting naira cash held in Nigeria at year end, which still has to appear in the euro balance sheet.
Each of these is easy to avoid with a monthly routine, and much harder to unpick at the year end when the commercialista is closing the accounts under deadline.
If the business grows to regular naira flows, a separate naira bank account and ledger for the Nigerian activity make all of this easier: the euro books then receive a monthly summary rather than dozens of individual conversions.
A routine that works
- Keep a naira ledger (or a multi-currency module) with original amounts.
- Record each entry with its date, the rate and the rate source.
- Book exchange gains and losses when invoices are settled.
- At year end, list naira balances and open invoices and agree the treatment with your commercialista.
- Keep invoices, bank statements and conversion confirmations together: see what an Italian accountant needs.
Where Pryme fits
A Pryme Business Account keeps euro and naira balances separate, and Swap shows the rate and the fee before you approve, so each conversion leaves a dated record of the rate actually applied. The Finance agent can prepare a reconciliation for a person to check. See also the Nigeria library on bookkeeping for small businesses.
Questions people ask
How do I record naira transactions in Italian books?
In euros, at the exchange rate for the transaction date, keeping the naira amount, rate and source alongside.
Can an Italian company keep accounts in more than one currency?
Yes. Art. 110 TUIR permits multi-currency bookkeeping, with euro figures for reporting.
What is an exchange difference?
The gain or loss when an invoice is settled at a different rate from the one used when it was recorded.
Which rate do I use at year end?
IAS 21 uses the closing rate for cash and receivables; check Italian tax treatment with your commercialista.
Sources
- Brocardi: Art. 110 TUIR (DPR 917/1986), updated 26 Sep 2026 · accessed Oct 2026
- IFRS Foundation: IAS 21 The Effects of Changes in Foreign Exchange Rates (2026 issued standards) · accessed Oct 2026
- TheCable: CBN FX Manual 2026, what changes (3 Jun 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.