What Is Treasury Management and How Can It Benefit Your Company?

Two people reviewing business reports with charts illustrating performance
May 18, 2022

From small business owners to large corporations, treasury management impacts — and is the heart of — all departments in a company. When used well, treasury management can boost a business’s profitability, while mitigating risks and streamlining payment processing. 

What is treasury management?

Treasury management is the planning, controlling, and optimization of a business’s cash flow to ensure the financial objectives of a company are met. It requires finding the best ways to manage and optimize a company’s assets to ensure they’ll have resources available in the future, should they need them. In short, treasury management helps businesses find money by optimizing liquidity and increasing their bottom line.

Within a corporation, the treasurer holds the important role of working to satisfy a company’s financial goals. They are responsible for overseeing, managing, and having a strong understanding of all the business’s accounts, while also mitigating financial risk and reducing costs. 

To ensure that a company is managing its financial risk properly, a treasury management system is needed to determine the business’s proper cash levels. These systems require companies to create different procedures which are used to manage their cash flow and assets, and can be used to improve financial forecasting for a business. 

Benefits of treasury management

1. Improve cash flow

Businesses can improve and gain control over their cash flow, reduce expenses, and clean up their finances with the help of treasury management. When a treasurer oversees your business’s account, they’re able to pinpoint where money is being wasted and create solutions to improve a business’ financial operations. 

2. Ensure greater cash liquidity

Good treasury management means your money won’t be tied up when you need it most. Businesses can ensure that operations continue to run smoothly by optimizing liquidity. Doing so allows businesses to get a handle on their finances and helps guarantee that they always have enough cash on hand for operating expenses, as well as any issues that may arise. 

3. Integrate accounting and reporting tools

Useful management tools can be integrated into treasury management as a way to improve finances and future planning. With accounting and reporting tools, you can maintain cleaner financial recordkeeping, analyze transactions to plan ahead, increase earned interest, and look for ways to minimize fees — all of which ultimately lead to better decisions for your business.

4. Decrease financial risks

Businesses often have trouble managing accounts on their own due to their complex nature. This, in turn, can lead to poor financial decisions and a lack of cash for internal business obligations and objectives.

However, with treasury management, corporations can trust that their receivables, payables, investments, and cash are being properly managed and attended to, mitigating the risks associated with trying to manage everything on your own. 

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, giving you 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.

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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.

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