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 a document for every business expense that shows who you paid, what for, when and how much: a supplier invoice or receipt is best, backed by the bank or POS record of payment. The Nigeria Tax Administration Act 2025 requires books and records sufficient to determine your tax, kept in English for at least six years after the year of assessment. A bank debit alone proves money left the account; it does not prove what it was for.
What the law asks for
Section 31 of the Nigeria Tax Administration Act 2025 (NTAA) requires every person, including those exempt from tax, to keep books and records with enough information on all relevant transactions to determine their tax liability. Records are kept in English (with a certified translation on demand) and for not less than six years after the year of assessment they relate to.
The tax authority can ask for them. Under s.57, it may require records held on computers, other electronic devices or cloud services, and a notice must give at least seven days to produce them. Failing to keep books is an offence under s.102, with a penalty of ₦10,000 for an individual or ₦50,000 for a company in the Act's text.
The other half of the rule is in the Nigeria Tax Act 2025. Section 20 allows expenses "wholly and exclusively incurred in the production of the income", and s.21 refuses any deduction for domestic or private expenses, fines and penalties, and capital withdrawn by the owner. Your receipts are how you show an expense passes that test.
What counts as good evidence
| Document | What it proves | Enough on its own? |
|---|---|---|
| VAT invoice from a registered supplier | Supplier, TIN, invoice number, date, items, amount, VAT charged | Yes, ideally with proof of payment |
| Shop or supplier receipt | That you paid a named seller for named goods on a date | Usually, for routine purchases |
| Bank transfer or POS record | That money left your account to a named account | No; add the invoice or a note of the purpose |
| Handwritten receipt | Payment, if it shows seller name, phone, date, items and amount | Acceptable but weaker; add a payment record |
| Petty cash voucher | Internal approval of a small cash payment | Attach the seller's receipt wherever possible |
| Contract or tenancy agreement | The basis of rent, service fees and retainers | With invoices or payment records for each payment |
| Withholding tax receipt from a customer | Tax deducted from what they paid you | Needed to claim the credit against your own tax |
Mondaq's review of the 2025 Act lists what s.153 requires on a VAT invoice: the supplier's TIN, its incorporation or registration number, an invoice number, the supplier's name and address, the date of supply, the purchaser's name, the gross amount, and the VAT charged with the rate. If a large supplier gives you a slip without these, ask for a proper invoice.
Expenses that cause trouble
- Market purchases with no receipt. Write a voucher at the time with the seller's name, phone number, location, items, quantity and price, signed by the staff member who paid, and pay by transfer where the seller accepts it so the bank record names them.
- VAT that should have been charged and was not. PwC's summary of Nigerian deductions (reviewed May 2026) says an expense on which VAT was due but not charged is not deductible.
- Mixed personal and business spending. Fuel for a car used for both, or a phone bill shared with the family, needs a reasonable split you can explain.
- Fines and penalties. Not deductible, receipt or not.
- Staff reimbursements. PwC notes employment benefits are taxable except reimbursements supported by third-party invoices or receipts, so a staff claim without a receipt can become taxable pay.
- Equipment. Capital purchases are claimed through capital allowances, not as an expense, so keep the invoice for as long as you own the asset and for six years after.
How to file them
- Photograph or scan each receipt the day you get it; thermal POS slips fade.
- Name each file by date, supplier and amount, for example 2026-10-14_SupplierName_45000.
- Keep one folder per month, with subfolders by expense type if you have many.
- Write the bank reference or voucher number on each receipt so it links to a line in your statement.
- Keep originals of VAT invoices and contracts in a box labelled by year.
- Back up the digital folder to a second place each month.
Scans are usable. The Evidence (Amendment) Act 2023 extended s.84 of the Evidence Act to electronic records, so a well-kept digital file is evidence, but keep originals of important documents where you can.
How long to keep them
At least six years after the year of assessment. For income earned in 2026, that means keeping the records until at least the end of 2032. Keep longer for assets you still own, for any year under dispute and for loan or lease agreements still running.
Linked guides: petty cash or expense cards, getting withholding tax credit notes back and bank reconciliation in steps.
Where Pryme fits
Pryme partners with VerifyDoc.ai so any customer can generate a regular or a verifiable receipt or statement, and anyone can check a verifiable one is genuine and unaltered. On a Business Account, the Finance agent can prepare a monthly list of payments with no matching receipt.
Questions people ask
How long should I keep business receipts in Nigeria?
At least six years after the year of assessment, under s.31 of the Nigeria Tax Administration Act 2025. Keep asset invoices for as long as you own the asset, plus six years.
Is a bank statement enough as a receipt for tax?
Not on its own. It shows a payment was made but not what it was for. Pair it with an invoice, receipt or a note of the purpose.
Can I keep scanned receipts instead of originals?
The NTAA lets the tax authority require records held electronically, and the Evidence (Amendment) Act 2023 covers electronic records. Keep clear scans, and originals of VAT invoices and contracts where possible.
What if a market seller cannot give me a receipt?
Write a signed voucher with the seller's name, phone, location, items and price, and pay by transfer where possible so the bank record names the seller.
Sources
- Nigeria Tax Administration Act 2025 (s.31, s.57, s.102) · accessed Oct 2026
- Nigeria Tax Act 2025 (gazette text: s.15, s.20, s.21, s.56) · accessed Oct 2026
- Mondaq: Examination of the VAT provisions under the Nigeria Tax Act 2025 (28 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate deductions (last reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual income determination (last reviewed 29 May 2026) · accessed Oct 2026
- Omaplex: An overview of the Evidence (Amendment) Act 2023 · 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.