What is treasury Management and why your business needs it

What Is Treasury Management and Why Your Business Needs It

Managing finances is one of the key responsibilities of a business owner. Because it can be a challenging task, many businesses use treasury management tools or services to streamline their financial operations.

What Is Treasury Management?
Treasury management is controlling and organizing an enterprise’s financial resources. It mostly involves cash flow management as well as forecasting, investing, risk assessment, and day-to-day processes such as invoicing and banking. Banks offer various treasury management services (TMS) that you can use for your business. Some of the commonly available services include:

  • Cash Management — focuses on a company's cash flow, including monitoring account balances, managing payments, and optimizing cash positions.
  • Liquidity Management — ensures that a company has sufficient liquidity to meet its financial obligations. This includes managing cash reserves, optimizing working capital, and investing idle cash.
  • Payment Services — facilitate secure and efficient payment processing, including online payments, wire transfers, and electronic funds transfers (EFTs).
  • Receivables Management — helps businesses manage their accounts receivables, including collections, cash application, and dispute resolution.
  • Fraud Protection — focuses on detecting and preventing fraudulent activities, including check fraud, electronic fraud, and account takeover.

Benefits of Treasury Management Services (TMS)

1. Improve Cash Flow and Visibility: TMS equips you to monitor the amounts and timing of cash inflows and outflows. This helps you avoid common cash flow mistakes like losing track of disbursements and not having enough funds when you need them.
2. Boost Productivity: When you use TMS, you can automate some of the important financial processes. This lifts tedious and repetitive tasks off of you and/or your employees so you can focus on other important jobs at hand, which boosts productivity.
3. Save Time: Authorization and initiation of payments can take time. If you have a treasury management system in place, you can streamline the payment process to speed up transactions. It also minimizes guesswork and human errors.
4. Fraud Protection: Services like the automated clearing house (ACH) and electronic check matching help detect suspicious or fraudulent transactions. This helps protect you from losses.
5. Strategic Planning: Finally, treasury management plays a crucial role in your business's strategic planning. It aligns treasury goals with overall business objectives. As it provides you with financial analysis, you can make informed decisions about capital allocation, financing options, and investment opportunities.

Without a doubt, treasury management services can make business operations smoother and help manage your money better. If you need treasury solutions for your company in Oklahoma or Texas, contact Liberty National Bank and let us make your job easier!


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