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
Use the exchange rate for the day the income is received or the cost incurred: art. 110 paragraph 2 TUIR values foreign-currency items by reference to that date. For the rate itself, accountants commonly use the rates published on the Banca d'Italia's exchange-rate service, and art. 110 paragraph 9 also allows rates from independent international providers that can be verified. Whatever source you use, record it next to each entry and apply it consistently.
The rule in Italian law
Article 110 of the TUIR (the Italian income tax code, as updated to 26 September 2026 on Brocardi) has two paragraphs that matter here.
- Paragraph 2
- Income, proceeds, expenses and charges in foreign currency are valued by reference to the date they are received or actually incurred. The same paragraph permits multi-currency bookkeeping.
- Paragraph 9
- The exchange rate for each month is set by the authorities on the basis of official data, and alternative rates supplied by independent international operators may be used, provided they can be verified.
So there are two decisions to make: which date, and which source.
Which date
- Sales invoice: the date of the transaction, which is normally the invoice date for services or the delivery date for goods.
- Purchase invoice: the date the cost is incurred.
- Payment or collection: the date the money moves. The difference from the invoice rate is an exchange gain or loss.
- Year end: open naira balances are dealt with under the year-end rules; ask your commercialista how the current text of art. 110 applies, since paragraph 3 was repealed by legislative decree 192 of 2024.
IAS 21 takes the same line for companies using IFRS: the spot rate at the date of the transaction (paragraph 21), with an average for a week or month acceptable if rates do not fluctuate significantly (paragraph 22). With the naira, which has moved sharply at times, an average can be far from the actual rate, so use daily rates when the naira is volatile.
Which source
The Banca d'Italia runs an exchange-rate service (tassidicambio.bancaditalia.it) that Italian accountants commonly consult for daily and monthly rates. We could not read its currency list for this article, so check that the naira is listed for your date and note the rate type shown. The ECB's euro reference rates cover a limited list of major currencies; check whether the naira is among them before relying on it. Where no official rate fits, paragraph 9 allows a verifiable independent provider.
When naira rates diverge
There have been periods when several naira rates existed at once. IAS 21 (paragraph 26) says that where several rates are available, use the rate at which the cash flows could have been settled. In practice, when you actually convert money, the rate your bank or provider applied is the best evidence for that transaction; keep the confirmation.
Worked example (illustrative rates)
A naira invoice of ₦3,400,000 is issued on 2 May. Suppose the official rate that day is €1 = ₦1,700, so the invoice is booked at €2,000.00. The client pays on 30 May, and your provider converts at €1 = ₦1,760, giving €1,931.82. The exchange loss is €68.18.
| Step | Rate (example) | Euro |
|---|---|---|
| Invoice 2 May, ₦3,400,000 | 1,700 | €2,000.00 |
| Payment 30 May, ₦3,400,000 | 1,760 | €1,931.82 |
| Exchange difference | −€68.18 |
Had you used a May monthly average of, say, 1,730 for both entries, you would have booked €1,965.32 and no loss, which does not reflect what happened. That is why a consistent daily approach is easier to defend for a volatile currency.
Invoicing in euros instead
One way to avoid most of this is to invoice Nigerian customers in euros. Your books then need no conversion for the sale, and the currency risk sits with the customer. Many Nigerian businesses, however, prefer or need to pay in naira: under the CBN's 2026 FX Manual, as reported by TheCable, the naira is the legal tender for transactions within Nigeria, and a customer may find it simpler to pay a naira invoice into a local account. If you accept naira, the rate rules above apply, and the exchange gain or loss on collection is yours. Decide which approach suits each customer, and write the currency and the rate rule into the contract.
Whichever currency you invoice in, show both the naira amount and the euro equivalent with its rate and date on internal copies. It costs nothing at the time and saves questions at the year end.
A short policy to adopt
- Source: name the rate source (for example, the Banca d'Italia service) in a one-page internal policy.
- Date: invoice or transaction date for bookings; actual conversion rate for payments.
- Gaps: if no rate is published for a date, use the nearest previous published rate and note it.
- Evidence: save the rate screenshot or file for each month with your records.
- Review: ask your commercialista to confirm the policy once a year.
See also euro and naira bookkeeping and receipts for Nigerian expenses.
Where Pryme fits
Converting with Swap in a Pryme Business Account shows the rate and the fee before you approve, and the confirmation records the rate actually applied on that date, which is the evidence IAS 21 points to.
Questions people ask
What exchange rate should an Italian company use for naira?
The rate for the transaction date, from an official or verifiable source such as the Banca d'Italia service, applied consistently.
Can I use a monthly average rate for naira invoices?
IAS 21 allows an average only if rates do not fluctuate significantly; for the naira, daily rates are usually safer.
What if the naira rate on the invoice date is not published?
Use the nearest previous published rate and note it; ask your commercialista to confirm.
Is the exchange difference taxable in Italy?
Exchange gains and losses on settled items affect profit; confirm the tax treatment with your adviser.
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.