Financial Q&A: Your Questions Answered
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Bookkeeping & Accounting
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How do I handle personal transactions in business records?
In 2026, the Nigeria Tax Act 2025 and the Nigeria Revenue Service (NRS) have made "Commingling" (mixing personal and business money) a high-risk activity. Because tax authorities now use automated data matching with your bank, unexplained personal transfers can be wrongly taxed as business income.
What supporting documents must I keep?
In 2026, the Nigeria Revenue Service (NRS) has shifted toward "Data-Driven Audits." This means they use AI to cross-check your bank inflows against your tax filings. To protect yourself, you must keep "Primary Source Documents" that prove every single entry in your books. Under the Nigeria Tax Administration Act 2025, you must retain these for at least 6 years.
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:
Can I do my own bookkeeping or must I hire an accountant?
In 2026, the answer depends on your business type and revenue. While you can legally do your own day-to-day bookkeeping, Nigerian law makes a professional accountant mandatory for certain end-of-year filings and high-turnover businesses.
Is bookkeeping mandatory for small businesses?
In 2026, bookkeeping is mandatory for all small businesses in Nigeria. While many small business owners previously operated informally, the Nigeria Tax Act 2025 and the Nigeria Revenue Service (NRS) reforms have made record-keeping a legal prerequisite for accessing tax benefits. Here is why you cannot ignore bookkeeping in 2026: