How to Track Business Income Properly for Tax in Nigeria
Why bank statements are not enough and how to build a simple income trail using invoices.
The problem: bank alerts are not tax records
Bank statements show money received, but they do not explain what the payment was for.
Tax reporting needs a clear link between work done, invoices issued, and payments received.
Simple explanation
The cleanest income trail is: quote, invoice, payment, receipt. Each step proves the previous one.
- Issue an invoice for every job
- Mark payments against each invoice
- Store invoices and receipts together
Real business example
A consulting firm used only bank statements and struggled to justify income sources during a review.
When they matched each payment to an invoice, the report was clear and accepted quickly.
Why this matters
Clear income trails reduce audit risk and make tax filing faster.
They also make it easier to measure profitability by client or service.
A calm path forward
Make invoices your default proof of income and keep them organized.
- Invoice every transaction, even small ones
- Reconcile invoices to bank deposits monthly
- Keep one system of record for all invoices
Invoices create proof
ShieldInvoice creates a clean income trail automatically so you can file with confidence.
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