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Bookkeeping & Accounting2/4/2026

What basic accounting reports should I prepare?

In 2026, the Nigeria Tax Administration Act (NTAA) 2025 and CAMA 2020 mandate a specific set of reports that move beyond simple internal tracking. To be compliant with the Nigeria Revenue Service (NRS) and the CAC, you should prepare these four primary reports:

1. Statement of Profit or Loss (Income Statement)

This is your most important tax document. It calculates your "Assessable Profit."

  • What it shows: Your total revenue minus operating expenses (rent, salaries, etc.) over a specific period.
  • Why it matters in 2026: Small businesses (turnover ≤ ₦100m) use this to prove they qualify for the 0% Company Income Tax rate. Even at 0%, the NRS requires this report to be filed annually as part of your "Nil Return."

2. Statement of Financial Position (Balance Sheet)

This provides a snapshot of what your business owns and owes at the end of your financial year.

  • What it shows: * Assets: Cash in bank, inventory, and equipment.
    • Liabilities: Unpaid loans, taxes owed, and supplier debts.
    • Equity: The capital you invested and retained earnings.
  • 2026 Requirement: The NRS now cross-checks your "Net Asset Value" to ensure you are correctly classified as a small, medium, or large business.

3. Statement of Cash Flows

This report tracks the actual movement of physical cash in and out of your business.

  • Why it matters: In 2026, the NRS uses Data Matching between your bank's quarterly reports and your tax filings. If your Profit/Loss shows a loss but your Cash Flow shows massive inflows that aren't explained, you may trigger an automated tax audit.

4. Fixed Asset Register (Mandatory for 2026)

While not a "financial statement" in the traditional sense, the 2026 reforms make this a mandatory supporting document.

  • What it shows: A list of every piece of equipment over ₦50,000, its purchase date, and its current value.
  • Why it matters: You cannot claim the Economic Development Incentive (a 5% tax credit for new equipment) without an up-to-date Fixed Asset Register.

Report Summary by Business Size (2026)

Report TypeBusiness Name (Enterprise)Small Company (≤ ₦100m)Large Company (> ₦100m)
Profit & LossRequired for PITRequired for Nil ReturnRequired (Audited)
Balance SheetRecommendedRequiredRequired (Audited)
Asset RegisterRecommendedMandatoryMandatory
Audit ReportNot RequiredExemptedMandatory

Two Critical 2026 "Deadlines" for these Reports:

  1. CAC Annual Returns: Small companies must submit a simplified Statement of Affairs by June 30th each year.

NRS CIT Filing: You must upload your Profit & Loss and Balance Sheet to the TaxPro Max portal within 6 months of your year-end (e.g., by June 30th for a December 31st year-end).