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 most records for five years from when you made or obtained them, or completed the transaction, whichever is later. Each record must show the date, amount and description, plus GST details, purpose and the relationship between the parties where relevant, in English or easily converted. For a naira payment, that means the invoice, proof of payment and the exchange rate used.
Payments to Nigeria raise more questions at audit than domestic ones: an invoice with no date, a WhatsApp screenshot as proof of payment, a rate nobody wrote down. The ATO does not ask for anything exotic, but it does ask for records that explain each transaction. This guide sets out the ATO's rules and what they mean for cross-border payments. It is information, not tax advice.
How long: the five-year rule
The ATO says you need to keep most records for five years. The period generally starts from when you prepared or obtained the record, or completed the transactions it relates to, whichever is later. Some records start later, such as FBT records, which run from when you lodge the FBT return, and some must be kept longer.
What a record must show
According to the ATO, a record must explain the tax and super-related transactions your business conducted, with enough detail to show the essential features and purpose of each transaction and its relevance to your income and expenses. The minimum is generally:
- the date;
- the amount;
- a description;
- GST information;
- the purpose of the transaction;
- the relationship between the parties, where relevant (a payment to your brother's company in Lagos needs saying so).
Records must be in English or able to be easily converted to English. An invoice from a Nigerian supplier in English meets that; a handwritten receipt in Hausa needs a translation kept with it.
The cross-border file: what to keep for each payment
| Document | Why it matters |
|---|---|
| Supplier or contractor invoice | Shows what was bought, from whom, when and for how much, in naira or dollars |
| Contract or engagement letter | Shows the purpose and the relationship, especially for related parties |
| Proof of payment | Bank or provider statement showing the amount sent and received |
| Exchange record | The rate used and its source, so the AUD amount in your books can be traced |
| Fees charged | Kept separately so the expense is not mixed with the exchange difference |
| Receipt or acknowledgement | Confirms the payee received the money |
For the rate, the ATO's translation rules generally tie the conversion to the time of the transaction, allow average rates in many cases, and accept any reasonable externally sourced rate for currencies the ATO does not publish. Write down which one you used. Our guide to conversion rates for naira expenses goes into the choice.
Digital records
Electronic records are fine, but the ATO sets conditions. The information must not be able to be changed, you must be able to reconstruct the original data if your system changes, and when asked you must provide access details, such as passwords or encryption keys, and the data in a standard format such as Excel or CSV. A folder of screenshots that anyone could edit sits uneasily with that; bank statements and receipts exported from the provider are better.
Tax invoices on the Australian side
If you are registered for GST and charge it, the ATO's tax invoice rules apply to your sales: you must provide one within 28 days if asked, unless the sale is $82.50 or less including GST. An invoice under $1,000 shows that it is intended as a tax invoice, your identity and ABN, the date, a description with quantity and price, and the GST amount. From $1,000, the buyer's identity or ABN must be on it too.
Payments to family and related businesses
Cross-border businesses run by Nigerians often involve family: a sister who sources fabric in Kano, a cousin's logistics company in Apapa. These payments are legitimate business expenses when they are for business purposes, but they draw attention because the relationship is close. The ATO's minimum information includes the relationship between the parties where relevant, so say it plainly in the record, keep a written agreement setting the price, and make sure the amount is what you would pay a stranger for the same work.
Common gaps in Nigerian payments
- Paying a contractor with no invoice, only a chat message. Ask for an invoice every time.
- Cash given to a relative to pay a supplier. Get a receipt from the supplier, not just the relative.
- Using the rate from a search engine weeks later. Record the rate on the day.
- Mixing personal and business transfers in one account. Use a separate business account.
On the Nigerian side, withholding tax credit notes are another record worth chasing; see getting your withholding tax credit notes back. For a tamper-evident option, read verifiable receipts for an audit trail across two countries.
Where Pryme fits
Every transfer from a Pryme Business Account shows the rate and the fee before you approve, and both are kept in the record. Verifiable receipts and statements from VerifyDoc.ai can be checked by anyone to confirm they are genuine and unaltered, which suits the ATO's concern that digital records cannot be changed.
Questions people ask
How long must I keep business records in Australia?
Most records for five years, starting from when you prepared or obtained the record or completed the transaction, whichever is later, according to the ATO. Some records must be kept longer.
Can my records be in naira?
Amounts can be in naira, but the records must be in English or easily converted to English, and you need a record of the exchange rate used to convert to AUD.
Is a screenshot enough proof of payment to Nigeria?
It is weak. The ATO expects digital records that cannot be changed and can be produced in a standard format. A statement or receipt exported from your bank or provider is better.
Do I need an invoice for every payment to a Nigerian contractor?
You need records showing the date, amount, description and purpose of each transaction. An invoice from the contractor is the clearest way to show that.
Sources
- ATO: Overview of record-keeping rules for business (updated 18 Jun 2026) · accessed Oct 2026
- ATO: Tax invoices (updated 18 Sep 2026) · accessed Oct 2026
- ATO: Translation (conversion) rules · accessed Oct 2026
- ATO: Foreign exchange rates overview (updated 14 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.