Treasury Management Services

Skip to main content


Treasury Management Services

September 5, 2023 By
George Koutzen
hands counting US dollar bills

Your business might be small, but if you're receiving income through multiple sources or payment methods, you might be spinning your wheels trying to manage your cash flow.

With treasury management services, you can take care of your cash flow, save time, and manage your assets so that you can scale your business at your own pace. Here's how it works.

What are treasury management services? 

Treasury management services manage and protect the flow of cash in your business. In the past, these services had to be performed by several people and required copious amounts of paperwork. Modern treasury management services use software to connect all financial products to a single point of reference. These are often paid-for services, but banks may offer these as part of their service bundle to their business clients. 

With treasury management services, business owners should be able to keep better track of their cash inflows and outflows. Thanks to technological advancements, small businesses have come a long way from only accepting cash as payment. Nowadays, they can receive funds via card payments, ACH (automated clearing house) payments, checks, and forex. Regular payments to manage in business include creditors, suppliers, payroll, and petty cash. Having treasury management services can help you keep track of it all.

Account management is a great treasury function for instant, consolidated financial information. It ensures that you can keep track of your assets by providing a real-time view of your cash position across different financial institutions. These should include cash balances, credit outstanding, and assets such as investments. 

Treasury management services are also used to secure your transactions. Dual management, authorizations and layers of security gateways ensure that only the right people have access to the accounts. 

The benefits of treasury management 

Small business treasury management ensures that your cash flow is taken care of so you have more time to focus on your core business. Here are a few of the most important benefits:

  • Save time

Real-time reporting and instant access to assets across various products ensure that cash flow analysis and forecasting happen in minutes. This function alone can take hours when done manually.

  • Risk management

A clear cash position ensures that small businesses can hedge their risks more effectively. Examples include reducing debt, increasing cash reserves, and making use of cash management services to keep accounts well funded.

  • Accuracy

When you have to compile financial information for analysis, human error may creep in. With treasury management, however, the process is automated and the chances of errors are minimal.

  • Scalability

Treasury management is a scalable service that grows along with your business. You may not need all the functions at once.

  • Liquidity

The core function of treasury management is to ensure proper liquidity. This means that you have enough cash available to run your business effectively. Through tools such as forecasting, you can predict whether your business may need a cash injection or loan to support the current rate of growth.

  • Loss prevention

Bank treasury management offers controls that ensure your profiles are protected. Moving your money may require additional layers of authorization that suit the needs of your business.

  • Increased revenue

Unlimited payment options ensure you attract a wide range of customers.

  • Global opportunities

If you do regular business overseas, treasury management can ensure that you take advantage of good exchange rates and hedge against possible foreign exchange fluctuations.

vintage brass cash register

Getting the most out of treasury management services 

Effective treasury management relies on having accurate information. Take the time to set up the tags and categories so you can receive the right reporting and analysis when you need it. 

Even if you purchase a treasury management software package outright, you still need to ensure the software stays up to date. Make sure you're keeping up with security enhancements, such as upgrades to your operating system and treasury software. Use the latest technology to prevent fraudulent transactions and limit the number of users to prevent theft and mismanagement.

6 factors to consider before choosing a small business treasury management service 

As a small business owner, there are a few things you should consider before deciding on a treasury management service:

 1. Your business type

There are several treasury management options out there, and it's important to partner with a company that can manage all your business needs. You should be able to transact without having to use multiple treasury services to get the job done.

 2. Budget

Treasury services range in complexity, services, and support. The more they offer, the higher the cost. Look for one that matches your needs and budget.

 3. Business needs

Assess where you most need help. Do you need daily reporting on cash positions, cash management between your existing accounts, or full-service treasury management?

 4. Ease of use

Request a demo of the treasury management service before signing up to ensure you're choosing a product you and your staff can easily use.

 5. Scalability

You want your treasury management service to grow with you and not fall short when you reach a certain number of transactions or reports.

 6. Customer support

Things can go wrong, and you want to know you can quickly get the assistance you need.

When you're ready to implement treasury management, choose a package that can provide the most value for your budget and boost your bottom line. 

Manage your cash flow with treasury management services 

Manually tracking and managing your business's cash flow isn't always feasible. A treasury management system allows you to keep track of your cash flow, create room for risk management, and secure your finances.

Need assistance with your cash flow? East West Bank can help you with your treasury management services. Get in touch with one of our consultants, and check out our website to learn more about the money management products we offer.