3 Ways Treasurers Can Add Strategic Value After Deploying a TMS

By Dory Malouf January 23, 2018

The overwhelming majority of treasury professionals are highly educated. Some have certified treasury professional certifications, others have master’s degrees, and some have a combination of both. However, without an enterprise-class treasury management system (TMS), most of their day is spent on manual, time consuming, non-strategic tasks (data mining, updating spreadsheets, bank portal entitlement management, bank account management, bank fee analysis, and payment processing, etc.). With such impressive credentials and expertise, is this the best use of their time? 

In Deloitte’s 2017 Global Corporate Treasury Survey, 80 percent of CFOs say they need the treasurer to be the strategic advisor to the business. As we’ve mentioned in our two previous blogs, organizations that use a TMS expect to save an average of 464 hours per month on a global basis. With that said, now the question is, “what are you going to do with that time?”

Below are three ways treasurers can add more strategic value using their extra time:

  • Spend More Time on Working Capital Management:  Cash is king and most organizations want to hold on to it as long as possible. There are multiple ways of accomplishing this.  Working capital programs like supply chain finance and purchasing card have proven that organizations can easily achieve payables term extensions greater than 30 days in support of existing mandate to extend terms. The strategic value for an organization is obvious: 30+ days of increased cash on hand can be deployed to pay off debt or re-invest into the business.
  • Enable Strategic Transformation: Corporate strategies are often driven by market conditions,  economic factors, as well as competitor performance. Economic and market indicators have calendar-scheduled delivery and the data is publically available. A treasury team could utilize this data in comparison to their organizations historical performance and be able to predict market headwinds that could potentially impact their performance. The value of this monthly analysis enables the organization to sustain performance by forecasting market headwinds and molding corporate strategy to this forecast.
  • Embrace Cash Flow Analytics:  It’s more than just cash forecasting. With their extra time and newfound productivity, capable treasury teams should commit to more strategic analytics. For example, forecasting to manage foreign exchange exposures in correlation with exchange rate forecast models predicting potential gains or losses to a hypothetical strategy. From a capital management perspective, long-term cash flow modeling analysis can help determine potential balance sheet and income statement impacts on long-term debt issuance or payback. The value add to an organization is more certainty and confidence in predicting financial metrics such as cash targets.

Repurposing your time with the help of a treasury management system not only adds value to your organization, it also elevates your value professionally. So, what are you waiting for? Evaluate your potential and deliver on the value. If you need help understanding the specific ROI that a TMS can deliver, you can sign up for a free online business case and I’ll review your situation personally.

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