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
Run petty cash in the Nigerian office as an imprest float: a fixed naira amount, held by one named custodian, topped up only by the value of receipted spending. Set a ceiling per payment, require a receipt or voucher for every outflow, reconcile and count the float at least monthly, and move anything regular onto bank transfer. Nigerian tax law requires records kept for at least six years.
Every Nigerian office spends small sums that do not suit a bank transfer: a dispatch rider, a plumber, printer toner, a generator repair on a Sunday. From the UK, petty cash is the expense line you see least and trust least. A simple system makes it visible without slowing the office down.
Use an imprest float
Under the imprest method the float is a fixed amount, say ₦300,000 in this example. The custodian spends from it and keeps the receipts. At top-up, the receipts are totalled and exactly that amount is added back, so cash plus receipts always equals the float. Any gap shows immediately.
Worked example
Example only. Float: ₦300,000. During the month the custodian pays out ₦212,500 with receipts. Cash counted: ₦85,000. Cash plus receipts: ₦297,500, so ₦2,500 is missing and needs explaining. Topping up the receipted ₦212,500 brings the cash to ₦297,500; the ₦2,500 shortfall is either explained or written off with approval and topped up separately, restoring ₦300,000.
Rules to write down
- One custodian, named, with a deputy for leave; the cash box is locked and the key controlled.
- A ceiling per payment (for example ₦50,000) above which spending goes through a purchase order and bank transfer.
- Receipts or vouchers for everything. Where a vendor cannot give a receipt, a signed petty cash voucher stating what, who and why, countersigned by a second person.
- Allowed categories listed: transport, small repairs, office supplies, refreshments. Salaries, advances to staff and supplier invoices are excluded.
- No IOUs from the float.
- Top-up by transfer from the company account, never from personal money.
The monthly check from the UK
- The custodian scans or photographs every receipt and voucher and uploads them with a petty cash sheet.
- Someone other than the custodian counts the cash, preferably on a video call, and signs the count.
- The UK finance lead compares the sheet to the receipts and approves the top-up.
- Do occasional unannounced counts as well as the monthly one.
- Watch for patterns: round amounts, the same vendor many times a month, spending just under the ceiling.
What to do when the count is short
Small differences happen: a forgotten receipt, a rounding error on change. Treat them calmly but consistently. Agree a tolerance in writing (for example, any shortfall above ₦5,000 or any shortfall two months running is escalated), ask the custodian to explain in writing, and record the outcome. Larger or repeated gaps mean the float is suspended, the cash is counted by two people, and the receipts for the last few months are reviewed.
Be careful how this lands. The custodian is usually a trusted staff member doing an extra job. Clear rules protect them as much as the company, because a documented count clears an honest custodian quickly.
Shrink the float over time
Most regular small costs in Nigeria can be paid by bank transfer, and every payment moved off cash is one fewer receipt to chase. Recurring vendors (cleaners, internet, diesel suppliers) can be set up as suppliers and paid on invoice. The float can then fall to what is needed for genuine one-off cash needs.
Paying staff expenses
Staff who spend their own money on company errands should be reimbursed by transfer against receipts, not from the float in cash. That keeps the float for small vendor payments and gives each staff claim its own record. Set a deadline, such as claims within 30 days of spending, so old receipts do not arrive in a pile at year end, and approve claims in the same way as other spending.
Tax and records
The Nigeria Tax Administration Act 2025 says every person must keep books and records with enough information to determine tax liability, in English, for at least six years after the year of assessment. Petty cash sheets and receipts are part of those records. Where a petty cash payment is for a service from a company, the withholding tax rules may apply; PwC's summary of the 2024 regulations notes an exemption for small companies on transactions under ₦2 million where the supplier has a TIN. Regular service providers are usually better paid by transfer, where WHT can be handled properly.
Store the scanned receipts by month in one shared folder that both offices can see, named consistently, so an auditor or the UK finance lead can find any payment in seconds.
Where Pryme fits
Moving petty spending to transfers is easier with a Pryme Business Account, where payments above a set ceiling need a person's approval and every action is recorded. Receipts and statements can be generated, and verifiable versions checked, through Pryme's partnership with VerifyDoc.ai (receipts). Related: purchase controls across the UK and Nigeria, an audit trail for UK-Nigeria payments and the Nigerian guide to petty cash.
Questions people ask
How much petty cash should a Nigerian office hold?
Enough for about a month of genuine small cash needs, set as a fixed imprest float. Review it as you move regular costs to bank transfer.
What if a vendor in Nigeria cannot give a receipt?
Use a signed petty cash voucher stating what was bought, from whom and why, countersigned by a second person.
How often should petty cash be counted?
At least monthly, by someone other than the custodian, plus occasional surprise counts.
How long must I keep petty cash receipts in Nigeria?
The Nigeria Tax Administration Act 2025 requires records for at least six years after the year of assessment.
Sources
- Nigeria Tax Administration Act 2025 (gazette copy) · 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.