FREQUENTLY ASKED QUESTIONS

What is a treasury management system?

A treasury management system (TMS) is an enterprise software that helps automate repetitive, often manual treasury processes. By automating these steps, CFOs and treasurers can gain greater visibility into cash and liquidity while gaining control of bank accounts, maintaining compliance, and managing in-house banking and financial transactions.

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Optimizing Cash with a Treasury Management System

Knowing your organization’s cash position, including location, currency and liquidity position, can be difficult. But utilizing a treasury management system makes answering those questions easier.

Instead of requiring multiple employees to spend hours using disparate tools and data sources to understand the company’s cash position, a treasury management system provides the clarity and visibility that is necessary to support critical financial decisions and strategic business objectives.

Cash Management & Forecasting with a Treasury Management System

A treasury management system can automate the preparation and reconciliation of an organization’s daily cash position before the business day even begins. Visualization of cash positions through the combination of bank balances and transactions with expected cash flows ensure users always have up-to-date, real-time insights into positions across banks, accounts, entities and regions.

With an accurate cash position as a starting point, it is easier to build and analyze global cash forecasts by day, week, month or year by leveraging multiple sources of data including repetitive items, ERP data and historical data.

Cash Accounting

A treasury management system can help eliminate the time consuming effort and error-prone process of posting to the general ledger (GL) by automating the GL entry process, generating dual multi-sided entries from bank and internal cash transactions for cash accounting.

Other Treasury Management Capabilities

Treasury management largely encompasses cash management, bank account management and financial transactions. Treasury management systems provide CFOs and treasurers with the visibility and reporting needed to optimize cash, control bank accounts, manage liquidity, deliver compliance, and oversee investments, debt and intercompany loans.

Cash Pooling and In-house Banking

Organizations can easily manage notional and physical cash pools to offer real-time intercompany positions, interest calculations and reporting.

Multilateral Netting

Treasury management systems help calculate net payables and receivables positions by participant, delivering optimized exposure management and integration with in-house banks.

Bank Relationship Management

Bank account management, signatory tracking, FBAR reporting, and bank fee analysis enable improved control of bank accounts and better transparency into bank fees.

Financial Transactions

Industry-best treasury management systems fully track treasury financial transactions with complete integration to payments, accounting and cash forecasting modules.

Accounting & Compliance

Automatic generation of journal entries, support of all ERP solutions for automated integration with the general ledger (GL) and GL reconciliation makes it easy to comply with industry and internal regulations.

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