Picture a provision shop owner who closes at 8 p.m., counts the cash drawer, and sees ₦45,000. Is that profit? Maybe not. Some of it is money owed to suppliers, some is stock money that must be spent again tomorrow, and some is a customer's change from a transfer. Without records, you can't tell which is which. This guide shows you how to keep books that answer those questions using only the phone in your pocket.
What bookkeeping must tell you
You don't need accounting jargon. A small shop needs records that answer five questions:
- How much did I sell today, by cash, transfer and POS?
- How much did I spend, and on what?
- Who owes me, and how much?
- Who do I owe, and when is it due?
- What did I take out for myself?
If you can answer these every week, you are ahead of most small traders. Everything below is just a way to capture those five numbers with little effort.
Step 1: Separate shop money from personal money
This is the single most important habit. Open a separate bank or fintech account just for the shop. Most Nigerian banks and fintech apps let you open another account with your existing BVN and NIN, but check your bank's current rules. Ghana, Kenya and South Africa readers can do the same with a second bank account or a separate mobile money wallet or business till where available.
Every naira from sales goes into that account or the cash drawer. Every shop expense comes out of it. When you need money for yourself, you pay yourself a fixed amount, like a small salary, and record it.
Step 2: Choose a tool you will actually use
The best tool is the one you open every day. Here is how the common options compare.
| Tool | Best for | Weakness |
|---|---|---|
| Notes app | Beginners, very small shops | No automatic totals, easy to make errors |
| Spreadsheet app (Google Sheets or similar) | Owners who want totals and weekly summaries | Needs some setup; typing on a small screen is slow |
| Free or low-cost bookkeeping or sales app | Shops with many items and customers on credit | Features and pricing change; may need data; check reviews before trusting your records to it |
| Voice notes plus end-of-day typing | Busy owners with no time at the counter | Easy to skip the typing |
If you've never kept records, start with a spreadsheet or even a notes app for one month. Move to a dedicated app only when you know what you need from it. Whatever you pick, back it up: sign in with your email so the data isn't lost if the phone is stolen or spoiled.
Step 3: Set up a simple daily sheet
Make one sheet called "Daily". Use these columns:
- Date
- Cash sales
- Transfer and POS sales
- Credit sales (given on trust)
- Expenses
- Notes
At closing time, fill one row. Total sales is the first three columns added together. Check that cash in the drawer plus the bank account balance movement matches your figures. If it doesn't, write the gap in Notes rather than ignoring it. A small repeated gap is a clue, perhaps unrecorded change, a wrong transfer, or a staff problem.
Always confirm transfers inside your bank app before counting them as sales. Our guide on fake bank alert scams at shops and POS explains how to do it.
Step 4: Keep a separate expenses and stock list
Create a second sheet called "Expenses" with date, item, amount and category. Useful categories are stock purchases, transport, rent, power or fuel, data, staff pay, repairs, and personal withdrawals. Keep personal withdrawals as their own category, never mixed with expenses.
For stock, don't try to count everything at first. Pick your ten fastest-selling items and track their opening count, restocking and closing count weekly. This shows you what is moving, what is stuck, and where shrinkage may be happening.
Step 5: Track credit and debts
A third sheet, "Credit", lists customer name, phone number, amount, date given, promised pay date and amount paid. Review it every Monday. Debts that are not written down are rarely collected in full.
Do the same for what you owe suppliers. Knowing that ₦60,000 is due Friday stops you from spending it on Wednesday.
Step 6: Do a ten-minute weekly review
On the same day each week, add up sales, expenses and personal withdrawals. A simple view:
- Total sales for the week
- Minus cost of the stock you sold (an estimate is fine at first)
- Minus other expenses
- Equals your rough profit before you pay yourself
Using purchases instead of cost of goods sold can mislead you if you stocked heavily that week. If you restocked a lot, compare over four weeks rather than one.
A hypothetical worked example
These numbers are invented to show the method. Your own figures will differ, so use current local quotes and your own records.
Assume a small provision shop. In one week it records:
- Sales: ₦300,000 (₦120,000 cash, ₦180,000 transfer and POS)
- Estimated cost of the goods sold: ₦230,000
- Other expenses (transport, power, data, helper's pay): ₦35,000
Rough profit: ₦300,000 − ₦230,000 − ₦35,000 = ₦35,000. If the owner withdrew ₦50,000 for the household that week, the shop paid out more than it earned by ₦15,000. Without records, the drawer might still have looked busy, and the owner would not have noticed that capital was shrinking.
The fix isn't always to sell more. It might mean lowering the withdrawal, cutting a slow stock item, or revisiting prices. Our guide on pricing your products for profit helps with the last one. This example is not a promise that any shop will earn this or any amount.
Common mistakes
- Recording only at month end. You will forget. Record daily, even if it is three minutes.
- Mixing personal and shop money. It makes every number unreliable.
- Treating sales as profit. Sales is what came in; profit is what remains after stock and costs.
- Ignoring small expenses. Daily transport, data and fuel for a generator add up quickly.
- Using a complicated app too soon. If you stop entering data, the app is useless.
- No backup. A lost phone can mean lost records.
- Letting staff handle records alone. Review the numbers yourself weekly.
Weak records are one of the usual reasons small businesses collapse. Our piece on why small businesses fail covers the other warning signs.
Records, registration and tax in general terms
Good records help if you ever apply for a loan, grant or supplier credit, because lenders want to see sales history. They also help with tax. Rules differ by country and by business type. In Nigeria, a business may need to register a name with the Corporate Affairs Commission, and tax obligations can depend on structure and turnover. Local councils and states may have their own levies or permits, and food, health or similar trades may need specific approvals. Check the official websites of the CAC and the tax authority, or speak to a licensed accountant, before assuming what applies to you. Readers in Ghana, Kenya and South Africa should check their own revenue authority and business registry.
Keep receipts or photos of supplier invoices in a phone folder named by month. Photos are not a replacement for formal requirements, but they help you reconcile.
Frequently asked questions
Do I need an accountant?
Not at the start. As you grow, register, hire staff or face tax filing, a licensed accountant is worth paying for. Good phone records make their work faster and cheaper.
What if my shop has hundreds of items?
Track only your top sellers and your highest-value items. A sales app with barcode or item lists may help, but check current features and costs yourself.
How do I record sales when I'm too busy?
Take a quick voice note or keep a paper tally at the counter, then enter totals at closing. A simple tally is better than no record.
Should I record money I borrow?
Yes. Add it as a separate line, not as sales. Borrowed money isn't income, and it must be repaid.
Your next step
Tonight, open your phone, create the three sheets (Daily, Expenses, Credit) and fill in today's numbers. Do it for seven days, then do your first weekly review.
This article is for general information only and is not financial, legal, or tax advice. Prices, rates and rules change quickly, so check current details before making money decisions.