How to Take Advantage of the Online Treasury

Javi Fondevila

If you have several accounts and/or manage lots of transactions, using an online treasury solution has several advantages for you. Typical corporations would have multiple different systems and processes to manage their transactions, however, with a treasury management solution everything is handled in one place.

The online treasury and treasury management involves managing all your company’s cash, investments and other financial assets your company has. By performing treasury management, you are able to optimize your liquidity and make better commercial and financial decisions when it comes to acquiring new assets.

What is a Treasury Management Solution?

A treasury management solution (or system) is a clever piece of software which can be used for the automation, control and management of several treasury-related functions. The goal of these is to provide a single and simple place where all your treasury processes are handled. By using and taking advantage of an online treasury, there are several benefits to be had.

Benefits of Using a Treasury Management System

  1. They are Efficient

A treasury management system streamlines your financial obligations as you are able to manage everything from one place. No longer will you need to use multiple different online banking systems, for example, to make payments. Treasury management systems can also be used to automate payments and keep an eye on spending.

  1. Your Costs are Reduced

Treasury management systems provide complete and current information which enable you to instantaneously see the costs associated with making transactions and payments. Additionally, the other tools offered such as the ability to manage multiple bank accounts from one place and automated routing mean you have a tool which minimizes bank transfers, reducing any fees paid.

  1. Cut Out Errors and Mistakes

Digitizing your treasury process helps you eliminate any guesswork and cut down on the potential for human errors to cause costly mistakes. Modern treasury management systems can automate routing, routing rules and automatically authorize payments across multiple banking platforms. This directly reduces payment processing errors.

  1. Automated Audits and Full Control

Digitization of your authorization processes automatically generates detailed audits and data within the system, and these can be used for all manner of processes and commercial decisions. Each time a payment is made, useful information and data is generated, including logs of any communications made with and between the banks.

  1. Save Time Across Your Team

Saving time on treasury tasks is by far one of the biggest benefits associated with the implementation and use of a treasury management system. Although using automated treasury management isn’t going to save you tons of time, it still means that extra manpower can be put towards more important aspects of your company.

Treasury tends to be an understaffed and undermanned area of business operations anyway, so there’s not a huge value shortage by replacing a dedicated treasurer with an automated system.

How Does a Treasury Management System Deliver Measurable Value?

It’s not what a treasury management system can save you in terms of time and money, it’s more what a treasury management system enables for your company with its benefits which deliver a good return on investments.

For instance, cash visibility is one of the more typical treasury-related terms, however, it enables key decisions to be made which improve your bottom-line. To be effective and utilizable, cash visibility needs to include forecasting so that the treasurers within your company can be confident about its liquidity. This enables your treasurers to make better financial decisions, reduce your debt and make better investments.

They are also fully scalable, and a treasury management system can enable your treasurers to do far more with less. With one, you instantly eliminate the need to hire additional staff which would otherwise be needed to grow your company internationally, because when you expand internationally you need to open foreign bank accounts.

What’s the Bottom Line?

If you are a company of any size that deals with a lot of transactions which take place across multiple bank accounts, a treasury management system would be ideal for you. The online treasury automates the entire treasury process and leaves you with more free time which can be focussed on other areas of your business to accelerate growth and development.

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