Treasury Management Fundamentals for Business Owners

Hand placing building blocks
March 22, 2022

How does your business manage its cash flow? Many business owners often get caught up in the day to day of running their business that they often neglect their finances. But you can miss out on opportunities to grow your money while maintaining proper cash flow.

Treasury management can help. A treasury account isn’t just for big businesses. Every organization, from seed companies to established enterprises, can benefit. Here’s what every CEO, founder or finance leader needs to know to better optimize their company’s financial funds.

What is treasury management?

Treasury management is a general way of referring to all of your company’s financial responsibilities. It’s a resource to monitor and control a company’s financial assets and holdings to mitigate financial, operation and reputational risk. 

It's best to think of treasury management as your office's backbone  — it oversees the amounts and timing of cash coming in and out of your business, which is essential to keep your operation running smoothly.

Why have a treasury account?

A treasury account is a key asset within treasury management. You already open bank accounts, business credit cards and merchant accounts. A treasury account can put your capital to the best and highest use. It lets business owners:

  • Optimize liquidity
  • Improve cash flow
  • Maximize profits
  • Mitigate financial risks

At its core, a treasury account is designed to strengthen your bottom line and help you manage cash flow. Every entrepreneur and finance leader knows that cash flow is the lifeblood of any business. But cash flow issues plague 61% of small business owners, according to a 2019 QuickBooks State of Small Business Cash Flow survey

Rather than leaving your idle cash in a bank account, a treasury account can help by generating revenue without keeping your funds locked up. Let’s look at Apple’s treasury operations to put it into perspective. It creates between 5% and 10% of the company’s overall profit, which significantly impacts Apple’s overall success.

Do all businesses have a treasury?

Large corporations take advantage of treasury management. They don’t let their cash sit in a bank account. Instead, corporations recognize their cash as an asset and use it to create revenue. 

But what about smaller businesses? Business owners in this area don’t usually have the resources to dedicate an entire department to treasury management. Luckily, you don’t have to — SMBs can benefit from increased efficiency through treasury management, too.

How to get the power of a treasury team without the cost

Whether you’re a seed company, in Series A, Series B and Series C funding rounds, or an established business, you can tap into treasury management to reduce financial risk and increase revenue without the high price tag. It’s called treasury as a service (TaaS). With TaaS, you don’t have to wonder what to do with your business’ idle cash — it can generate revenue. 

It starts with you opening a treasury account with Treasure, a free platform that offers two types of accounts to maximize your idle cash:

  • Treasure Cash 
  • Treasure High Yield

Treasure Cash is a no-market-risk allocation. It provides daily liquidity and $3.5 million FDIC coverage. 

Treasure High Yield kicks things up a notch by investing your funds in low-risk fixed-income mutual funds. It comes with up to 100x* higher yield than a typical bank account, $500,000 SIPC coverage and T+2 liquidity, which gives you access to your cash in two business days.

But the best part? Treasure selects and manages your investments, giving you hands-off cash management for your business. The platform gives you the power of TaaS without the internal cost of hiring your own treasury management team, so you can focus on what you do best — running your business.

Treasury as a service is changing how companies do business

You don't have to be a huge corporation to benefit from treasury management. Treasure opens the door to valuable investment and risk management tools. With Treasure’s treasury account, you get the best of both worlds: higher returns on your cash while managing liquidity. 

Let Treasure be your financial steward and put your idle cash to work, generating more revenue. Start your treasury management journey and open an account with Treasure today.

*Based on the yield of the funds offered by Treasure as of 12/31/2021.  Source: Bloomberg.

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Treasure Technologies Inc.
1324 Clement St
San Francisco, CA 94118
* Returns are projected based on current performance and are gross of fees. Treasure's fee is 35 basis points on Assets Under Management. There is no fee for Treasure Cash. Returns are subject to change daily.

** Treasure Cash accounts are held at Grasshopper Bank, N.A., our FDIC partner bank. Return differentials based on national average checking account rates as of 5/24/2023. Source: FDIC

Website is operated by Treasure Investment Management, LLC ("Treasure"), a wholly-owned subsidiary of Treasure Technologies, Inc., and an investment adviser registered with the U.S. Securities and Exchange Commission ("SEC"). Brokerage services are provided to clients of Treasure by Apex Clearing Corporation ("Apex"), an SEC-registered broker-dealer and member FINRA.

Investing involves risk, including loss of principal. The contents of this website are provided for information purposes only and do not constitute an offer to sell or a solicitation to buy securities. Past performance is no guarantee of future returns.