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 your euro books at the exchange rate for the date of the transaction, and restate naira balances you still hold at the year end at the closing rate. The rate you actually received on a conversion is the best evidence for that conversion; for other entries choose one reliable published source and use it consistently. An average rate is a shortcut that IAS 21 says is inappropriate when rates swing significantly.
The starting rule: the transaction date
Under IAS 21, the international standard on foreign exchange, a company with euro as its functional currency records each foreign-currency transaction at the rate on the date of that transaction. For naira, that covers invoices to Nigerian clients, bills from Lagos suppliers, payroll funding and naira bank movements. If you are unsure whether euro is your functional currency, start with keeping books in euro and naira.
We did not find a Revenue page that prescribes a particular naira rate for Irish accounts. What Revenue does ask for, on its record-keeping page, is that records clearly show the accounting process and that the original documents behind your figures are kept for six years. A rate you cannot explain or evidence is weak on both counts.
Choosing a rate source
| Source | Best used for | Watch out for |
|---|---|---|
| Rate on your own conversion confirmation | The conversion itself, and the payment it funded | It includes the provider's margin; it is a real cost, not a market rate |
| A published official rate (e.g. CBN) | Invoices, bills and balances where no conversion happened that day | Pick one published rate type and stick to it |
| A monthly average | High volumes of small, similar transactions | IAS 21 paragraph 40: inappropriate if rates fluctuate significantly |
| A rate typed in from a search or social media | Nothing | No evidence trail |
Nigerian payroll has its own rule. DLA Piper's August 2026 guide says Nigerian employers convert foreign-currency pay to naira at the CBN rate at the time of payment to work out PAYE and other deductions. If your Nigerian subsidiary or employer of record does that, its payroll records will carry a CBN rate. Your Irish books can still record the funding transfer at the rate you actually got. Just keep both, and label them.
Year-end and settlement differences
Two kinds of difference appear. When a naira invoice is paid at a different rate from the one used to record it, the gap is a realised exchange gain or loss. When you still hold naira, or are still owed naira, at the year end, IAS 21 asks you to restate it at the closing rate, and the movement is an unrealised gain or loss. Both go through profit or loss for transactions in your own books.
Worked example (illustrative rates)
- On 10 November you pay a Lagos supplier's bill of ₦3,200,000. You recorded it on 1 November at an illustrative ₦1,600 to €1: €2,000.
- On 10 November you convert euro to pay it, at an illustrative ₦1,580 to €1 on your confirmation: €2,025.32.
- The €25.32 extra is a realised exchange loss, recorded separately from the supplier cost.
- At 31 December you hold ₦1,000,000 in a naira balance, bought at ₦1,580. The closing rate you use is ₦1,650. You restate the balance from €632.91 to €606.06, an unrealised loss of €26.85.
Common errors we see
- Recording a conversion at a published rate instead of the rate you actually got, which hides the provider's margin inside the cost of sales.
- Using the rate on the day the invoice was paid for the original invoice, so the exchange difference disappears into revenue.
- Mixing rate sources month to month, which makes the year look more or less profitable for reasons unrelated to trading.
- Converting naira at one rate in the subsidiary and a different, undocumented one in the parent, so intercompany balances never agree.
- Not restating naira balances at the year end at all.
A short rate policy
Write down, in a paragraph your accountant agrees, how your company treats naira. A good one covers:
- Conversions: the rate on the provider's confirmation, with the fee recorded separately.
- Other entries: one named published rate, taken for the transaction date.
- Averages: whether you use them at all, and for which transactions.
- Year end: which closing rate, from which source, on which day.
- Evidence: where confirmations and rate screenshots are filed. See record keeping for Nigerian transactions.
For more on revaluation, see foreign currency accounting.
Where Pryme fits
Each Swap on a Pryme Business Account shows the rate and the fee before you approve, and the confirmation gives you a dated record for your books. You can also download receipts and statements, including verifiable versions made with VerifyDoc.ai, for your accountant.
Questions people ask
Which naira rate should I use in my Irish accounts?
The rate for the transaction date. For a conversion, the rate on your confirmation is the best evidence. For other entries, use one reliable published source consistently.
Can I use an average naira rate for the month?
IAS 21 allows averages as an approximation, but says they are inappropriate when rates fluctuate significantly. Agree with your accountant whether that applies.
Does Revenue publish a naira exchange rate?
We did not find a Revenue page prescribing one. Revenue asks that your records show how your figures were worked out and that you keep the original documents for six years.
What rate does Nigerian payroll use?
DLA Piper says employers convert foreign-currency pay at the CBN rate at the time of payment for PAYE and other statutory deductions.
Sources
- IFRS Foundation: IAS 21 The Effects of Changes in Foreign Exchange Rates (2026 text) · accessed Oct 2026
- Revenue: Keeping records (published 20 Oct 2025) · accessed Oct 2026
- DLA Piper Africa: FAQs on payroll taxes and employer liability (28 Aug 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.