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.
1. Can you do your own day-to-day bookkeeping?
Yes. In fact, for small businesses, the Nigeria Tax Act 2025 encourages DIY bookkeeping through digital tools.
- Self-Assessment: Nigeria operates a "Self-Assessment" system, meaning the government trusts you to calculate and file your own records initially.
- Tools: You can use Excel, Google Sheets, or simple accounting apps (like Moniepoint Business, Bumpa, or Sage) to track your daily income and expenses.
2. When is a Professional Accountant mandatory?
While you can track your own cash flow, you must involve a licensed professional in these three scenarios:
| Scenario | Legal Requirement | Why you need an Accountant |
|---|---|---|
| Annual Audit | Mandatory for Standard Co. | Only a Chartered Accountant licensed by ICAN or ANAN can sign an "Audited Financial Statement." |
| CAC Annual Returns | LTD Companies | While you can upload the files, the financial summary must usually be "certified" or prepared by a professional for accuracy. |
| Professional Services | Law, Med, Eng, etc. | Under the 2025 Act, "Professional Service Firms" are excluded from small business tax exemptions regardless of their turnover. You need an accountant to navigate this higher tax burden. |
3. The "Small Company" Exception (DIY Friendly)
If your business is a Small Company (Turnover ≤ ₦100 million AND Fixed Assets < ₦250 million), the rules are more relaxed in 2026:
- Statement of Accounts: Instead of a full "Audited Financial Statement" (which requires an external auditor), small companies can often submit a Statement of Affairs signed by the company directors.
- 0% Tax Rate: Because you pay 0% Company Income Tax, the "computation" is simple. However, you still need to file a "Nil Return" to prove you qualify for the zero-rate.
4. Risks of "Pure" DIY Bookkeeping
Even if you do it yourself, the Nigeria Revenue Service (NRS) uses AI-driven data matching in 2026. If your DIY records don't match your bank inflows (which banks report quarterly for accounts over ₦100m), you face:
- Best of Judgment (BOJ) Assessment: The NRS ignores your records and "guesses" your tax, usually at a much higher rate.
- Inaccurate Filing Penalty: A ₦100,000 fine for "negligent" record-keeping.
Recommendation for 2026
- Daily/Monthly: Do it yourself using a dedicated business bank account and an accounting app.
- Quarterly: Have a freelance accountant review your books for 1 hour to ensure you aren't missing Withholding Tax (WHT) or VAT triggers.
Annually: Hire a professional to file your Tax Returns and CAC Annual Returns. The cost of a professional (₦50k – ₦100k for small firms) is much lower than the 2026 daily late penalties.