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
Keep on the shelf only the parts your own job cards show you fit every week, set a reorder point for each (daily use × supplier lead time + safety stock), and buy everything else to order against a customer deposit. Value stock at the lower of cost and net realisable value using FIFO or weighted average; PwC notes LIFO is not permitted for Nigerian tax.
A workshop’s parts shelf is often its biggest hidden cost. Money sits in boxes of pads and belts that fit cars you rarely see, while customers wait for the oil filter you ran out of yesterday. Good stock control frees cash and shortens jobs.
Decide what to stock
Start from your own records, not a supplier’s list. Go through the last three months of job cards and count how often each part was fitted. Then group parts:
| Group | How to treat it | Typical candidates (check your own data) |
|---|---|---|
| Fast movers | Always in stock with a reorder point | Oil and air filters, brake pads, spark plugs, bulbs, engine oil |
| Steady movers | Small stock, reorder weekly | Belts, wiper blades, common sensors |
| Slow or model-specific | Order per job with a deposit | Gearbox parts, body panels, electronics |
Focus stock on the makes and models you see most. A workshop near a ride-hailing hub will have a different list from one serving trucks.
Reorder points that work
For each fast mover, the reorder point is the stock level that triggers a new order:
Reorder point = average daily use × supplier lead time (days) + safety stock.
Example. You fit an average of 3 oil filters a day, your supplier delivers in 4 days, and you keep 6 extra as safety stock. Reorder point: 3 × 4 + 6 = 18. When the shelf drops to 18, order. Choose an order quantity that balances supplier discounts against cash tied up; a week or two of use is a common starting point.
Counting and valuing stock
- Count fast movers weekly and everything monthly. Compare the count with what job cards say you used; the gap is shrinkage.
- Under IAS 2, stock is valued at the lower of cost and net realisable value (para 9). Cost includes purchase price, non-recoverable duties, transport and handling, less trade discounts (para 11).
- Use FIFO or weighted average consistently for similar items (para 25). PwC’s Nigeria tax summary notes FIFO is common, average cost is allowed and LIFO is not permitted.
- Write down damaged or obsolete parts item by item (para 29), for example pads for a model you no longer see.
Worked example: weighted average
Example. You buy 10 sets of brake pads at ₦12,000 and later 10 more at ₦14,000. Total cost ₦260,000 for 20 sets, so the weighted average is ₦13,000 a set. Fitting 6 sets moves ₦78,000 to cost of sales and leaves 14 sets valued at ₦182,000.
Supplier terms
- Credit period. Ask for 14 or 30 days once you have a payment record; pay on time to keep it.
- Returns. Agree in writing that unused, unopened parts in original packaging can be returned within a set period. This matters most for parts bought for a specific job.
- Warranty. Ask what happens if a part fails soon after fitting: who pays for the part, and who pays for your labour to replace it.
- Authenticity. Buy from suppliers who will put the brand and part number on the invoice. Section 123 of the FCCPA bars misleading representations about goods, so do not describe a part to a customer as original unless your invoice supports it.
- Price lists. Ask for a written price list and notice of increases so you can update estimates.
Pay suppliers against invoices and keep proof of each payment; proof of payment to suppliers explains why. If your business is a company and deducts withholding tax, PwC’s summary of the 2024 Regulations lists 2% on supply of goods by non-manufacturers for residents, with a small-company exception under ₦2 million where the vendor has a TIN.
Cash tied up on the shelf
Once a month, add up the value of everything on the shelf and compare it with what you fitted in the month. If the shelf holds three months of use, you are financing your suppliers. Run down slow lines, return what you can, and use the cash to keep the fast movers in stock. A part that sits for a year has cost you its price plus the jobs that cash could have paid for.
Controls against loss
- One person issues parts from the store, against a job card number.
- Old parts removed from customer cars are kept separate and logged, so they are not mixed with new stock.
- Spot checks on high-value items at random times.
- Pharmacies face similar shelf problems with expiry; see pharmacy stock control for count routines that carry over.
Where Pryme fits
Pay several suppliers in one run through Pryme bulk payouts. The Finance agent can prepare a weekly stock and supplier summary from your records for a person to review and approve. Deposits on special-order parts are covered in job cards and deposits.
Questions people ask
Which spare parts should a mechanic keep in stock?
The ones your own job cards show you fit most often, usually service items like filters, pads and plugs for the models you see. Order slow and model-specific parts per job.
How do I calculate a reorder point?
Average daily use × supplier lead time in days + safety stock. For 3 a day, 4 days and 6 spare, that is 18.
How should I value spare parts stock?
At the lower of cost and net realisable value under IAS 2, using FIFO or weighted average. PwC notes LIFO is not permitted for Nigerian tax.
How do I avoid fake parts?
Buy from suppliers who put the brand and part number on the invoice, agree a warranty, and keep the invoice with the job card.
Sources
- IFRS Foundation: IAS 2 Inventories · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria income determination · accessed Oct 2026
- LawGlobalHub: Section 123 FCCPA 2018 · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction at Source (Withholding) Regulations 2024 · 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.