Is Your Business Audit-Ready for 2026?
A tax audit is one of those things nobody really wants to think about, but every business should be ready for. Imagine it as a surprise visit from your in-laws. You may not be expecting them, but if your house is in order, there’s nothing to fear.
With the new tax landscape in Nigeria and the increased enforcement we’re already seeing, 2026 will be a year where businesses need to stay sharp. The good news is that preparing for a tax audit is easier than most people imagine. The even better news is that when you run your business with the right habits, an audit becomes far less stressful.
Why Your Business Might Get Audited in 2026
Tax authorities don’t pick companies at random. Red flags trigger most audits in your filings or financial behavior. These are some of the most common ones:
- Inconsistent Tax Returns
If the figures you file for different years tell two different stories, expect to be questioned. For example, when your revenue suddenly drops without explanation, or administrative expenses fall drastically for no clear reason. Tax authorities look out for trends, and anything that doesn’t follow a logical pattern catches attention.
- Suspicious Spikes in Expenses
Imagine making ₦50 million in revenue but claiming ₦48 million in expenses without proper proof. Or suddenly recording a huge jump in travel, logistics, or “miscellaneous.” These are classic audit triggers. Any expense that looks exaggerated or disconnected from your business operations will raise eyebrows.
- Not Filing NIL Returns
Many businesses think that if they didn’t operate or make money in a year, they can simply ignore filing. But the tax laws require filing even when you made no profit or activity. Failure to file NIL returns is one of the fastest ways to get flagged.
- Poor Record Keeping
No matter how legitimate your transactions are, if you cannot show proper documentation, regulators assume the worst. Missing invoices, unsigned receipts, no payroll records, or vague explanations for payments all create opportunities for an audit.
These triggers are not guesses. They align with real patterns that the Federal Inland Revenue Service (FIRS) and state revenue agencies commonly investigate. Inconsistent data, unusual expense behavior, and poor record-keeping appear frequently in reported audit cases across Nigeria.
5 Steps to Prepare for an Audit
Preparing for an audit doesn’t need to feel like preparing for JAMB. At Havivah Trust Consult, we like to talk solutions, not just pinpoint what you’re doing wrong. If you follow these steps consistently, anyone can walk into your workspace and you’ll be calm, confident, and compliant.
Step 1: Clean Up Your Records
Start with the basics. Organize your receipts, invoices, payroll details, contracts, bank statements, assets and tax filings. Keep both digital and physical copies. Make sure every document has a date, description and clear purpose. When your records speak intentionality, half the work is already done.
Step 2: Reconcile Your Financial Statements
Your numbers should agree everywhere. If your financial statements say one thing but your tax filings say something else, that’s a red flag. Ensure your revenue, expenses, and profits align across your internal books, your bank reports and your tax returns. Fix any inconsistencies now before they get noticed later.
Step 3: Review Your Expense Patterns
Look at your expenses the way an auditor would.
Do you have sudden jumps?
Do some expenses feel too high for your business size?
Do you have proof for everything?
If the answer is shaky, adjust your books and ensure your business expenses are realistic, necessary, and well-documented. Every deduction you claim must be supported by valid evidence.
Step 4: File On Time
Never miss filing deadlines. Whether your business made money or not, file your returns. NIL returns show transparency and prevent suspicion. Late filing doesn’t just trigger audits, it also attracts penalties. Having a digital calendar that helps you keep track of dates is a simple way to stay on the safe side.
Step 5: Prepare a Clear Audit Folder
This is your “just in case” file. Store your most important documents in one place:
- Tax clearance certificates
- Past returns
- Audited financial statements
- CAC documents
- Payroll summaries
- Asset register
- Expense schedules
Think of it as a first-aid kit for your business. When the need arises, you won’t panic because everything you need is already organized.
A tax audit is not a punishment. It’s simply a check to ensure your business is doing the right thing. And the truth is, many issues that lead to audits are avoidable. When your records are tidy, your filings are consistent, and you stay compliant, you avoid trouble, but much more than that you run a healthier, more accountable business.
Start preparing now. Your 2026 self will thank you for it.
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