Treasury Management – “Are you maximizing your cash?”

July 7, 2021

Cash flow is one of the most important aspects of managing any business — according to one study, more than 80 percent of businesses that fail owe their failure to poor cash flow management.

Treasury management serves the vital function of monitoring and managing cash flow and all the components that go with it. But what exactly does treasury management entail? And do you really need to dedicate resources to this specific function?

Treasury Management Basics

Treasury management is a complex undertaking that can require a very specific set of skills and expertise in your Finance Department. It can also require understanding of specific industries, including construction, travel and entertainment, healthcare, property management, financial services, and government.

Outsourcing your treasury management services to your partner bank makes smart use of your time, outsourcing this technical financial work to professionals rather than trying to manage such complicated financial transactions yourself. Private and corporate banks promote treasury management services to their high–net-worth clients to provide a partnership approach to all their unique banking needs, regardless of their industry or unique financial service’s needs.

The role of treasury management can include:

  • Cash positioning – Treasury Management can assist you in managing your daily cash needs so you can pay down debt, meet payment deadlines, invest excess funds, plan for future capital expenditures
  • Automation of receivables – ACH, check payments, wire transfer, and online payment systems can all be set up to maximize your funds availability and allow your customers to pay you the way they want, when they want and how they want!
  • Automation of disbursements – Using ACH, check payment, wire transfers, or cash, you can maximize your credit terms and make your payments in the most efficient fashion. Don’t miss out on favorable terms or discounts!
  • When you partner with your bank on treasury management functions, you’ll be able to outsource one of the most critical aspects of your company, your balance sheet will benefit, and allow your team to focus on more important internal tasks and growing your business.
  • When you outsource key treasury management services your organization can benefit from enhanced controls to mitigate fraud and risks associated with your finances. Fraud and risk management features can include: dual control for wire transfer initiation, ACH spending limits, and limiting access to important account balance reporting.

Due to the complicated nature of treasury management, small business, middle market and large corporate organizations partner with their banks to make their cash work harder. Look no further than your banking partner to source the optimal treasury management functions that will benefit your business.

Talk to Your Bank Today

Given the often hectic pace of modern business and finance, treasury management is no longer an optional investment, it is a business critical aspect of your success. Treasury Management best practices are available from your seasoned relationship banking team that will help you to navigate the complex array of receivables and payment transactions, and keep your spending on track.

Treasury Management benefits equal smart cash management services. Cash liquidity is the key to your business success. Make your cash work harder and let your employees work smarter. If you’re ready to start taking treasury management seriously, get in touch with First Western Trust today.


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