The 7 Core Benefits of a Treasury Management System (Infographic)

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Treasury Management System Benefits - Image

Most digital tools have core value propositions which are to streamline a tedious manual process or automate to scale an existing workflow. Treasury management is no different in the sense that treasurers can perform their daily tasks using legacy tools like Microsoft Excel. However, treasurers with manual workflows may struggle to scale or focus on some of the more high-level forecasting and strategic responsibilities as a result. Often times, the benefits of a treasury management system may not be entirely clear.

This is where a treasury management system becomes a logical next step for treasurers to hone their focus on. When debating whether to invest into a system that can potentially require a good amount of implementation assistance and internal coordination, it is important to remember the core benefits one can obtain upon implementing such a system. Before any purchasing decision is even made or what functionality is required, a high-level benefits approach is our recommended strategy!

According to the 2017 Global Corporate Treasury Survey by Deloitte, which surveyed over 200 treasurers, 75% of respondents identified 3 or more concerns for their company. A key concern around technology is the speed with which the market is moving and being able to identify ‘which train to jump on’, and the impact of banking and tax reforms is an emerging challenge.

In that same survey, 20% of each functional area is still being managed in spreadsheets, leaving the company open to both operational and fraud risks.

We devised this list and infographic of the 7 core benefits of a treasury management system to help you visualize and easily comprehend the immediate value propositions you can expect:

1. Boost in productivity
A treasury management system excels in streamlining and automating manual processes and tedious data management tasks, consequently boosting your overall daily productivity. Automated authorization and payment initiation eliminates organizational bottlenecks and allows for less location dependence.

2. Real-time and precise data availability
With a TMS, treasurers access and view financial data and take advantage of integrated reporting tools that extract real-time data to make informed decisions. The key benefit with instant data availability and reporting is that treasurers can optimize their short term cash management, and view historic cash flows.

3. Reduction in manual entry and calculation errors
With a TMS, users establish digital automation workflows for data entry and data verification. This ensures manual errors can be caught early.

4. Limit redundant banking and FX costs
TMS quantifiable benefits can be found with the consolidation of payment systems and banking relationships, leading to a reduction in cross-bank and FX fees. Tools like multilateral netting and flexible bank account integrations are available to accomplish those goals.

5. Detailed activity monitoring
Transparency of user activity within a treasury management system allows central treasury departments to paint A-Z panoramas of any data alteration or payment trail.
Whether you believe in a “4-eyes” or “6-eyes” principle for authorization workflows, you can generate intuitive audit trails within the system from a pool of all activity for all users. Additionally, activity trails can be extended to communication with banks and beneficiaries if needed.

6. Bank and connectivity flexibility
The value proposition of a TMS is typically seen in the bridge to multiple banks and accounts. One central interface allows corporates to take advantage of the various emerging connectivity options and switch providers without creating stalls in productivity. The separation from legacy bank interfaces allows treasurers full control of their cash and activity.

7. Regulatory compliance and risk mitigation
Establish company-wide compliance with industry regulations within the systems and take advantage of integrated risk mitigation functionality.
In addition, you can ensure your organization is fully compliant with the emergence of global & regional Financial Messaging Standards like SWIFT, SEPA, ISO20022.

TMS Infographic

Want to learn more about our powerful treasury solutions? Time to discover Coupa Treasury.