Benefits of Treasury Management Software

Treasury Management Software

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Last Updated on April 26, 2022 by Work In My Pajamas

This article discusses the benefits of using a TMS for your company’s financial management. These benefits include: automating manual processes, integrating data from your bank and internal accounting system, and reducing costs. To learn more, please continue reading. Let’s consider the most common ones and how they impact your business.

Here are a few examples:

Automates Manual Processes

Automation has many advantages. Not only does it save time, but it also improves governance. Automated treasury management software can eliminate the need for human intervention. Many medium-sized companies continue to rely on outdated spreadsheets to accomplish these tasks. Furthermore, automation from a treasury software corp can improve a company’s financial risk assessment and hedging exposures execution. However, it’s not always possible to quantify the benefits of treasury automation.

Automation of treasury processes requires significant time and resources. Automated processes can provide better insight and free up staff for value-added analytics. The first step in modernizing your operations is identifying and aggregating exposures. Because exposures frequently fluctuate in volatile markets, accurate exposure data is vital. Manually collecting exposure data can be time-consuming, so automation of this task is critical. Automation allows treasury teams to pull data from multiple sources and make a real-time analysis of transactions.

Provides Transparency Into Transactions

While the benefits of Treasury Management Software may seem obvious to finance executives, they can be challenging to quantify. When determining whether or not to work with a TSP, there are a few things to keep in mind. For example, if TMS is used in isolation, it can have disastrous consequences if the ERP system is not integrated. Martijn van de Graf, associate treasurer at Perfetti Van Melle, a global chewing gum and candy manufacturer, explains how delays in making urgent payments can affect the organization. Moreover, the department is not able to accurately forecast its cash requirements.

Other benefits of Treasury Management Software include improved control over cash flow. Using a system that integrates banking and finance departments enables treasurers to access their financial data and create an A-Z view of their entire payment trail. This makes it easier to manage short-term cash management and historical cash flows. Additionally, TMS users establish digital automation workflows, ensuring that manual errors are caught early. Further, TMS offers quantifiable benefits, such as the consolidation of payments systems and reducing cross-bank fees. Flexible integration of bank accounts is also available to enable users to achieve their goals.

Reduces Costs

While treasury management software implementations rarely go as wrong as the Second Avenue Subway, they have risks. There are many ways to go wrong, and many of these pitfalls stem from errors made during the initial project planning. While it is impossible to predict all possible outcomes in advance, creating a use case is the best way to track improvements in your business process. Making a use case also helps quantify future ROI calculations and identify weak links in your existing strategy.

Traditional methods for initiating payments place a considerable burden on treasury services teams. For example, ACH can fail to process an order, and businesses only have two days to dispute it. Automated systems can flag potential exceptions in advance. Also, sending money electronically is made easy with ProcessMaker. It combines ease of use with high-security technology, and you can set up a replicable wire template across your entire banking system. The software can also track potential exceptions and approve or cancel wire transfers.

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