Modern-day business moves faster than ever. To keep up, a company’s owners often find themselves managing multiple financial tasks at once — and that’s on top of everyday operations. A treasury management system can go a long way toward saving time and stress in the delicate balancing act that is running a business.

Here, Central Bank’s business banking experts delve into the finer points of the treasury management system. Read on to explore the advantages it offers small businesses, available services and tips for securing the right option for your company.

Starting at Square One: What is Treasury Management?
Before discussing the benefits and intricacies treasury management solutions offer, it helps to go back to basics. So, what is treasury management?

Treasury management references a suite of financial solutions designed to streamline operations and help a business efficiently manage its cash flow, liquidity and financial risks. These services go beyond conventional banking offerings such as checking or savings accounts and commercial loans.

What Are the Benefits of a Treasury Management System?
This strategic approach to company finances is all about incorporating tools that make daily operations easier and more efficient — all while protecting company funds. Here is a high-level look at a few key advantages of a treasury management system.

• Improved Cash Flow Management: Effective treasury management allows businesses to optimize their cash flow by streamlining processes, reducing idle cash (or cash not being used in ways that improve a company’s value) and ensuring funds are readily available when and where they are needed. This can be a particular benefit for smaller companies with tighter budgets.

• Heightened Liquidity: Small companies often have fewer liquid financial assets available to them. Treasury management services provide insights and assets to help them keep funding at healthy levels, helping to prevent disruptions in day-to-day operations due to lack of finances.

• Risk Mitigation: Financial risks are an everyday part of business. And, while they can never be avoided entirely, strategy can help keep losses at bay. Treasury management services help identify and avoid risks, whether they stem from fluctuations in currency, changing interest rates, market uncertainty or fraud attempts.

• Improved Efficiency: By streamlining routine financial tasks such as wire origination, online deposits and spending reports, treasury management services free up valuable time for small business owners. Such efficiency allows them to return focus not only to the core activities that drive their operations, but to strategic decision-making needs for the future.

What Treasury Management Solutions Does Central Bank Offer?
Central Bank provides treasury management solutions for companies of all types and sizes, and each offering is fully customizable to suit a business’s operational needs.

• Central Bank Commercial Connect Platform: Available online and through the mobile app, Commercial Connect provides customers with simple, secure access to critical transactions such as tax payments, domestic and international wires, ACH debit or credit transfers and more, wherever they can connect to the internet.

• Positive Pay Fraud Detection: A system aimed at keeping customers’ funds and important data safe, Positive Pay requires authentication for every ACH item presented against your business checking account. Items that don’t match your electronic check issue file are flagged and returned for review. Authorized team members can then either wave payment through or halt payment for items suspected to be fraudulent.

• Same Day ACH/ACH Origination Services: A system that taps into the Automated Clearing House (ACH), which is among the largest electronic networks in the nation, Same Day ACH/ACH Origination allows customers to initiate, process and clear a range of transactions securely and easily, in as little as a few hours. Applicable transactions include, but are not limited to, payroll check direct deposits, payment preauthorization and tax payments.

• DLM Remote Deposit: Available for use across mobile and desktop devices, DLM Remote Deposit allows customers to scan checks and upload them directly to their business online bank accounts with help from Central Bank’s single sign-on. The system allows for multiple deposit capabilities at once.

• Business Credit Cards: Accepted by companies around the globe, Central Bank Visa® Business Credit Cards streamline spending while offering added security, no matter where your work takes you. Chip card (EMV) security, fraud monitoring and related security features provide peace of mind while comprehensive reporting capabilities help keep records in order. Meanwhile, employee cards provided at no additional cost keep business moving with fewer disruptions and spending authorizations needed.  

• Wire Origination: A safe solution for transferring money between company accounts and to third parties, too, Central Bank Wire Origination facilitates operations anywhere you do business. Domestic and international transfer capabilities, foreign currency wires and ABA lookup capabilities make easy work of ensuring your funds reach their intended recipient, no matter their location. Multi-wire transfer options and templates for frequent wires save you time, while exchange rate views help keep your books in order.  

Tips for Securing a Treasury Management System that Works for You
The details matter when it comes to seeking out tools for managing, moving and utilizing company funds. Here are some factors to consider during your search for a treasury management system you can trust.

• Customization Considerations: Seek out solutions that can be tailored to your business’s size, industry and needs — both current and future. As your company grows and changes, your treasury management system should evolve with it.

• Hidden Costs: Carefully review the fee structures associated with your potential treasury management services and ask questions along the way. Do minimum account balances come into play? Are there associated service fees? Are there other costs that could creep in and affect your bottom line?

• Overall Security: Treasury management systems are closely tied with your company’s sensitive data. Ask what your potential provider does to keep that information safe. At Central Bank, for instance, we adhere to robust security standards and have entire teams specially trained in spotting and stopping potential problems, and seeking out ways to further improve already strong security measures.

• System Integration: Ideally, your treasury management solutions will blend seamlessly with your company’s existing accounts, payment methods and the like. Securing such services through a local bank you already know, trust and do business with is a great way to ensure compatibility and avoid issues that could result in inefficiencies and data discrepancies.

Having the right treasury management system in place can go a long way toward freeing busy business owners’ time, keeping money moving and helping companies work toward their financial goals. Even so, knowing the best path forward isn’t easy. If you have questions about any of the above, or if you’re interested in learning more about Central Bank’s treasury management solutions, feel free to reach out at any time. Our team is happy to help.