The core purpose of digital tools is to streamline a tedious manual process or automate a workflow so that it can be scaled. It is no different with Treasury management that corporate treasury could adopt legacy tools to accomplish their daily tasks.

The consequence of this is that treasurers with manual workflows may find it very difficult to scale or focus on some of the more advanced forecasting and strategic responsibilities. Treasury management systems may not always provide a clear idea of the benefits they bring. This is where corporate treasurers can hone their focus on treasury management systems.

Here are 6 ways treasury management may benefit you:

  • Increased productivity: Automating all tedious data management tasks and streamlining manual processes is one of the key advantages of treasury management systems. Automated authorization and payment initiation enable organizations to eliminate operational bottlenecks and become less location dependent.

  • Availability of precise and real-time data: Treasurers use TMS systems to access and view financial data, as well as to develop and implement integrated reporting tools that extract real-time data for making informed decisions. In addition to instant access to data, treasurers can make short-term cash management decisions based on historical cash flows.

  • Reduction in manual entry and calculation errors: With a TMS, users can automate data entry processes and verify data. This allows for the early detection of manual errors.

  • Limit redundant banking and FX costs: With the consolidation of payment systems and banking relationships, TMS can achieve quantifiable benefits in the reduction of cross-bank and FX fees. Multilateral netting and flexible bank account integrations are available to achieve these goals.

  • Monitoring of detailed activity: Through transparency within a treasury management system, central treasury departments can view all user activity, including all data alteration and payment history. Regardless of whether you prefer a “4-eyes” or “6-eyes” approach to authorization workflows, you can generate intuitive audit trails for your users within the system. If necessary, activity trails can also be extended to communicate with banks and beneficiaries.

  • Connectivity and bank flexibility: A top-of-the-line TMS provides bank and account integration, which is its primary value proposition. Businesses can now access various emerging connectivity options and move seamlessly between providers without slowing down their productivity. Treasurers have full control of their cash and activities due to the separation from legacy bank interfaces.

To Conclude

Treasury management systems that are digital, automated, and real-time are no longer a luxury, but part of the lifeblood of a business. Working remotely should not compromise their efficiency. Integrating a treasury management system is therefore a key element of a viable corporate strategy today.