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
Pharmacy bookkeeping works when the books and the stock records are the same system: every purchase is recorded with batch and expiry, every sale reduces stock, and a monthly count gives cost of goods sold and gross margin. Under the Nigeria Tax Act 2025, medical products are listed among zero-rated supplies in Mondaq's summary, which is different from exempt. Keep your PCN premises licence and superintendent records ready for inspection.
A pharmacy can be busy all day and still not know whether it made money. Medicines have thin, uneven margins, expire, and are easy to lose to theft or poor counting. Ordinary small-business bookkeeping is not enough on its own; the books must be tied to stock.
The records you need
| Record | What it holds | How often |
|---|---|---|
| Purchases register | Supplier, invoice number, item, batch, expiry, quantity, cost, payment due date | Every delivery |
| Daily sales summary | Cash, POS, transfer and credit sales; totals from the till or sales book | Daily |
| Stock card or system | Quantity in, out and on hand for each item, with batch and expiry | Every movement |
| Expiry and returns log | Near-expiry items, items returned to suppliers, items destroyed | Weekly |
| Supplier ledger | What you owe each distributor and when | Every delivery and payment |
| Expenses book | Rent, power, staff, licence fees | As paid |
Record purchases from the supplier's invoice, not from memory, and file the invoice. The batch and expiry make recalls and returns possible.
Linking stock and the books
Gross margin depends on cost of goods sold, and that comes from stock. The basic formula: opening stock + purchases − closing stock = cost of goods sold. Sales minus cost of goods sold is gross profit.
Worked example (labelled example)
| Item | ₦ |
|---|---|
| Opening stock at cost, 1 March | 4,200,000 |
| Purchases in March | 3,100,000 |
| Closing stock at cost, 31 March (counted) | 4,000,000 |
| Cost of goods sold | 3,300,000 |
| Sales in March | 4,400,000 |
| Gross profit | 1,100,000 |
Gross margin is ₦1,100,000 ÷ ₦4,400,000 = 25%. If your pricing assumes a 30% margin, the five-point gap is stock lost to expiry, theft, giveaways or unrecorded sales. A monthly count of high-value and fast-moving items, with a full count each quarter, keeps the gap visible. PwC's tax summary notes that FIFO and average cost are accepted ways to value stock in Nigeria, while LIFO is not.
A daily routine that keeps the books honest
- Open with a counted float and record it.
- Record every sale in the till or sales book, including credit sales with the customer's name.
- At closing, total cash, POS and transfers separately and agree them to the sales record; confirm transfers in your banking app, not from customers' screenshots.
- Enter any delivery received that day in the purchases register before the invoice is filed.
- Note items sold out or running low for the next order.
Ten minutes a day prevents the month-end scramble that leads to guessed figures.
VAT on medicines and the pharmacy
A May 2026 Mondaq examination of the Nigeria Tax Act 2025 lists medical services and products among zero-rated supplies in section 187. Zero-rated is not the same as exempt: a zero-rated supply is taxable at 0%, so a registered supplier may be able to recover VAT paid on its own inputs, whereas an exempt supply carries no such right. Not everything a pharmacy sells is a medical product; cosmetics, snacks and toiletries may be standard-rated at 7.5%.
Separately, small businesses with turnover up to ₦100 million and fixed assets up to ₦250 million are exempt from VAT registration, charging and filing under the Act (Forvis Mazars, March 2026). If you sell both medical and non-medical goods, code each item in your system so sales can be split. Confirm which of your lines are zero-rated with an adviser. This is information, not tax advice.
PCN licence and inspection records
The Pharmacists Council of Nigeria's guidelines for registering pharmacists and premises, effective 11 November 2024, require a community pharmacy to be registered with a fully registered superintendent pharmacist, and the premises licence to be renewed from 1 January each year. PCN inspects premises before licensing, within a month of a complete application. Keep on file and to hand:
- The current premises licence and receipts for renewal
- The superintendent pharmacist's registration and current practising details
- CAC documents for the business
- Purchase invoices showing medicines came from licensed sources
- The expiry and destruction log
PCN's website offers public checks of registered pharmacists and premises, which you can use to confirm your suppliers' status too.
Records for tax
The Nigeria Tax Administration Act 2025 requires records sufficient to work out tax for at least six years after the year of assessment. A small company (turnover up to ₦100 million, fixed assets up to ₦250 million) is exempt from company income tax but still files a return.
Where Pryme fits
Pharmacies are one of the sectors in Spaces, Pryme's merchant ecosystem in Lagos, Abuja and Port Harcourt, where customers can spend Loans on Spaces lent by Solid Allianze MFB. The Finance agent on a Business Account prepares purchase and payment records for a person to approve. See also pharmacy stock control and buying from distributors on credit.
Questions people ask
Is VAT charged on drugs in Nigeria?
Mondaq's May 2026 summary of the Nigeria Tax Act 2025 lists medical products among zero-rated supplies. Non-medical items a pharmacy sells may be standard-rated at 7.5%. Small businesses under the turnover and asset thresholds are exempt from VAT registration.
How do I calculate my pharmacy's profit?
Opening stock plus purchases minus closing stock gives cost of goods sold. Sales minus cost of goods sold is gross profit; subtract expenses for net profit.
What records does PCN inspect in a pharmacy?
PCN's guidelines cover registration of the superintendent pharmacist and premises. Keep the premises licence, superintendent details, CAC documents and purchase invoices from licensed sources ready.
When is a pharmacy premises licence renewed?
From 1 January each year, under PCN's premises guidelines effective November 2024.
Sources
- Examination of the VAT provisions under the Nigeria Tax Act 2025 (Mondaq, 28 May 2026) · accessed Oct 2026
- 2025 NTA: VAT key business changes (Forvis Mazars, 16 Mar 2026) · accessed Oct 2026
- Guidelines for Registration of Pharmacists and Pharmaceutical Premises (PCN, effective 11 Nov 2024) · accessed Oct 2026
- Pharmacists Council of Nigeria: verify pharmacist and premises · accessed Oct 2026
- Nigeria corporate: income determination (PwC Worldwide Tax Summaries, reviewed 29 May 2026) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · 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.