THE BENEFITS FROM INVESTING IN A TREASURY MANAGEMENT SYSTEM (TMS)
Priscila Nagalli, CFA, CTP, Director of Treasury and Capital Markets
The implementation of a Treasury Management System (TMS) provides an organization with many benefits. Traditionally, corporations have utilized spreadsheets and manual processes to maintain cash visibility. These methods bring about many challenges.
The Accounting department can face challenges, including manual and time-consuming cash reconciliation and General Ledger posting, Accounts Payable may incur costly wire fees due to bank limitation on utilizing different transmission options, or no direct feed from the Enterprise Resource Planning to the bank system. The Treasury team suffers manual and time-consuming data compilation for cash application and multiple sources of delayed information. The Tax department may come across a cumbersome Foreign Bank and Financial Accounts (FBAR) reporting process, intercompany loan, and foreign exchange activity.
A Treasury Management System (TMS) can remediate these issues and provide greater timely analytics. Within the Accounting department, a TMS greatly reduces operational risk on automated General Ledger posting and reconciliation. It delivers a centralized source of information for cash, inter-company, Foreign Exchange, Debt and Investments transactions while providing opportunity to reduce bank charges by implementing netting and payment hub for global activity. In addition, the company becomes less sensitive to formatting and connectivity changes related to payments. The entire Finance Department now has one centralized and control-proof source of data for payments, cash, liquidity management, working capital analytics and accounting.
The benefits of implementing a Treasury Management System (TMS) don’t end there. The Treasury division will holistically find:
• Risk mitigation and enhanced control environment
• Connectivity to all banks for statements & payments
• Accurate and consistent data
• Adoption of world-class processes
• Automation and streamlining of processes
• Significant time savings to allow Treasury to concentrate on strategic issues
• Transformation from operational to analytical
• Scalability for future growth
• Regulatory compliance support
• Stronger business continuity plan
• Improved data analysis
• International remote capability
As you can probably see, there is much to gain by using a treasury management system for your company’s treasury needs. If you would like to learn more about how Actualize can assist you with selecting and implementing a Treasury Management System, I can be reached at firstname.lastname@example.org.
With offices in the US, UK, and Canada we service a global client base. Our deep expertise is in Treasury, liquidity, risk management, payment and accounting solutions. We focus on delivering high client satisfaction and ensuring our client’s need are met.
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