Preparing business-name statements for CAC each year
How a firm prepares the January-to-December financial statement a Nigerian business-name client files with its CAC annual return by 30 June.
By Achekam · · 4 min read · For Accountants & audit firms in Nigeria
Many of a Nigerian firm's smallest clients are not companies at all. They trade under a registered business name: a sole trader's shop, a consultant's practice, a family partnership. They still have a filing with the Corporate Affairs Commission each year, and that filing needs a financial statement that someone has to prepare.
For an accounting firm, this is a recurring piece of work that is easy to price, easy to schedule and, done well, easy to roll forward. This article sets out what the law asks for, how to handle clients whose own year differs, and how to build and repeat the statement in Achekam.
The calendar-year statement and the 30 June date
Under the Companies and Allied Matters Act, 2020, every individual, firm or corporation carrying on business under a registered business name must deliver an annual return to the CAC not later than 30 June each year, except the calendar year of registration. The return must be accompanied by the business's financial statement for the preceding 1 January to 31 December. Section 822 of the Companies and Allied Matters Act as published by the CAC contains the requirement.
The return is signed by the individual or individuals, or by a director and the secretary where the proprietor is a corporation. The form is CAC/BN 06 in the Companies Regulations 2021.
So the work has a fixed shape: a statement covering the calendar year just ended, ready in time for the client to sign and file by the end of June.
Clients whose own year differs
Some business-name clients keep their books to a different year-end, perhaps because they started trading mid-year or because their trade is seasonal. The CAC filing still asks for a January-to-December statement.
The practical answer is a calendar-year cut of the books. Ask the client for a trial balance at 31 December, as well as at its own year-end, and prepare the CAC statement from the December trial balance. Explain to the client why two sets of figures exist and which one goes to the CAC. If the client is willing, moving its own year-end to 31 December removes the duplication from the following year.
Choosing the engagement type and building the set
When creating an engagement in Achekam, staff choose its type, such as an annual financial statements compilation, an independent review or a statutory audit, and a firm can add its own named types. A firm with many business-name clients may prefer its own named type, for example one for the CAC business-name statement, so these engagements can be planned and reported on as a group.
From a mapped trial balance, the Studio builds a draft set of annual financial statements with every figure calculated in code, including the directors' report, the four primary statements, policies, notes and a detailed income statement. The practitioner's report follows the level chosen, which for most business-name clients will be a compilation. A business name has a proprietor rather than directors, so edit the report headings and wording accordingly; a block a person edited is kept when the draft is rebuilt.
Rolling forward each year
The second year is where the time is saved. Staff can roll a set of statements forward to the next year, carrying settings, policies, notes and wording and rebuilding every figure from the new trial balance. Adjusting entries, typed comparatives and signatures are not carried forward, so each year still needs its own adjustments and its own signature from the proprietor.
A yearly routine for the firm:
- In January, request the client's December trial balance and supporting records.
- Roll last year's set forward and load the new trial balance.
- Post the year's adjusting entries and review the draft.
- Send the statement to the proprietor for approval and signature.
- Hand it over, or file it, well before 30 June.
Filing fee and penalties for the client
The fee schedule in the Companies Regulations 2021 sets the CAC fee for a business name's annual returns, and other post-registration and miscellaneous filings, at ₦3,000 each. The schedule's cover is dated December 2020, so check for later fee changes before quoting it to a client.
CAMA section 822(4) applies a penalty and a daily default penalty, prescribed in the Commission's regulations, if the return is not delivered. The daily element is the reason to file on time rather than late: the cost grows with every day of delay.
The filing itself is changing. A public notice on CAC's iCRP home page says filing of annual returns is now available for all business names registered before July 2025, and the page also says a new AI-powered annual returns process for business names will be introduced soon so that returns for names created both before and after July 2025 can be processed and approved automatically. The notice gives no date for "soon", so clients registered after July 2025 should check the portal before assuming they can file. The filing steps are covered in the business name annual return.
The yearly service a firm can offer
| Element | Who does it | When |
|---|---|---|
| December trial balance and records | The client | January |
| Roll-forward, adjustments and draft statement | The firm | February to April |
| Approval and signature | The proprietor | May |
| Annual return filed with the statement | The client, or the firm on its behalf | By 30 June |
Offered as a fixed yearly service, with the dates agreed in advance, this is work clients understand and value. It also fits naturally into the firm's wider plan for CAC filings, described in company secretarial deadlines for Nigerian clients.
General guidance only, not advice on your own circumstances. Tax and payroll rules change: check the current position with the authority or your adviser.
