AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A private school should hold fees in a collection account separate from the account it spends from, keep development levies and PTA money apart, and run every payment on a two-person rule: the bursar prepares, the proprietor or principal approves, and the board approves anything above a set amount. Banks record this in the account mandate, set by a board resolution if the school is a company.
In many schools the proprietor started with one account, often a personal one, and fees, salaries, building costs and family spending all passed through it. That works until it does not: a parent disputes a payment, a bursar leaves, a co-owner asks where the development levy went, or the tax office asks for records. Separating accounts and setting signatories is cheap and protects everyone, including the proprietor.
Whose name the accounts are in
If the school is registered as a limited company (see starting a private school: approvals), the accounts should be in the company's name. Banks typically ask for the certificate of incorporation, memorandum and articles, TIN, a board resolution and mandate, and identification and BVN for each director and signatory (Greenwich Merchant Bank's 2025 corporate form; Mondaq, 2020). If the school runs as a registered business name, the account is in the business name with the proprietor's details. Fees paid into a proprietor's personal account make it hard to prove what is school income and what is not.
Which accounts a school needs
| Account | What goes in | What goes out |
|---|---|---|
| Fees collection | Tuition and termly fees from parents | Only transfers to the operating and payroll accounts |
| Operating | Monthly transfer from collection | Suppliers, utilities, diesel, repairs |
| Payroll | Monthly transfer equal to the payroll | Salaries, PAYE, pension |
| Development or capital | Development levies, a share of surplus | Approved building and equipment projects |
| PTA (held for the association) | PTA dues | Only on PTA executive approval |
The collection account is the most important. If nothing is paid out of it except to the school's own accounts, every naira of fees can be traced. A school does not need five banks; most banks let one customer hold several accounts. PTA money belongs to the association; it should have its own signatories drawn from the PTA executive, with the school as a co-signatory at most.
Who signs: a mandate that fits a school
The mandate tells the bank who can authorise payments. Corporate forms commonly offer sole, either-to-sign, both-to-sign, or other combinations (Greenwich Merchant Bank form). For a school, a tiered mandate works well. The amounts below are examples; set your own.
| Payment size (example) | Prepares | Approves |
|---|---|---|
| Up to ₦200,000 | Bursar | Principal |
| ₦200,001 to ₦2,000,000 | Bursar | Proprietor |
| Above ₦2,000,000, or any capital project | Bursar | Proprietor and one board member |
| Monthly payroll | Bursar | Proprietor, after principal confirms staff list |
On corporate internet banking, this is usually done by giving the bursar an initiator role and the approvers authoriser roles. Ask your bank how its platform sets approval limits; features differ.
Rules that make the mandate work
- No one approves a payment they prepared.
- The bursar never holds the proprietor's token, password or authenticator.
- New suppliers and bank detail changes are confirmed by phone with a known contact before the first payment.
- The board resolution names signatories by role and name, and is updated the week someone leaves.
- Cash collected at school (if any) is banked the same day or the next morning, never spent from the drawer.
Where school money usually goes wrong
The same few failures appear again and again when proprietors review their accounts after a problem:
- Parents paying staff directly. A parent transfers fees to a teacher or bursar "to save time". The school has no record and the parent has no proof acceptable to the school. Publish one set of account details and refuse any other.
- The development levy spent on running costs. When diesel and salaries are paid from the same pot as the levy, the building project quietly stalls. A separate account makes the gap visible early.
- One person with all the access. A long-serving bursar who holds the token, prepares and approves payments, and keeps the only fees register is a risk to the school and to that person, who cannot show their own honesty.
- No record of cash. Cash collected for uniforms, excursions or forms is spent before it is banked. Issue numbered receipts and bank it daily.
Reconcile monthly, report termly
Each month the bursar reconciles every account to the bank statement and to the fees register: fees billed, fees received, arrears. The proprietor signs the reconciliation. Each term, the board or the proprietor's family members who are co-owners receive a one-page report: opening balance, fees in, payroll out, other spending, closing balance, arrears. Keep these with the records the Nigeria Tax Administration Act 2025 requires you to hold for six years.
What to check first
- Are any fees still paid into a personal account? Move them.
- Does the current mandate name people who have left?
- Can any one person both create and approve a payment?
- Is PTA money mixed with school money?
- Was last month's reconciliation signed?
For the collection side, see a school fees collection system that works, and for payroll, running school payroll.
Where Pryme fits
A Pryme Business Account supports multiple accounts under one business, so collection, payroll and development money can be kept apart. Agents prepare payments; a person approves anything above the ceiling you set, and every action is recorded. Sign-in uses an authenticator app and a transaction PIN rather than SMS codes (security).
Questions people ask
Should school fees be paid into the proprietor's personal account?
It is better not to. Fees paid into a personal account are hard to separate from personal spending, which causes disputes with co-owners, parents and the tax office. Use an account in the school's registered name.
Who should be the signatories to a school account?
Typically the proprietor and a second senior person, such as the principal or a board member, with the bursar preparing payments but not approving them. Larger payments should need two approvers.
What documents does a bank need to open a school account?
For a company, banks usually ask for the certificate of incorporation, memorandum and articles, TIN, board resolution and mandate, and ID and BVN of directors and signatories. Some banks also ask for references.
Should the PTA have a separate bank account?
Yes. PTA dues belong to the association. A separate account with PTA executive signatories keeps them apart from school income.
Sources
- Greenwich Merchant Bank: corporate account opening form (2025) · accessed Oct 2026
- Mondaq (Resolution Law Firm): How to open a bank account in Nigeria (27 Oct 2020) · accessed Oct 2026
- Nigeria Tax Administration Act 2025 (gazette copy) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.