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What is Treasury Management and Why Does My Business Need It?

September 27, 2021


Running a business is more complicated than ever, especially with constant and ever-changing cybersecurity and fraud threats. Luckily, the latest small business services for cash management can help you run your business safely and effectively. In this article, we’ll explain what treasury management services are, treasury management benefits for small business, and more.

What is Treasury Management?

Treasury Management services can streamline business finances by managing cash, investments, and other financial assets. It’s a management system that optimizes your business’s liquidity, while also mitigating its financial, operational, and reputational risk.

Treasury management encompasses collections, disbursement, information reporting, capital management, currencies, and risk management for businesses. Track and manage your business’s cash flow, including the funds going in and out, investments, accounts receivables, etc.|

Keep your business finances on track while gaining more control and efficiency with cash flow, payments and payroll, accounting, and banking. Treasury management begins with a conversation between you and your business banker about the needs of your company. Single-Member LLCs and Sole Proprietors may not need much more than Business Checking and Savings Accounts with mobile and online banking, as well as Bill Pay. However, as your business grows, you’re going to need more help with Cash Management. Let’s take a look at the various services in the next section.



Types of Treasury Management Services

When you need more business cash management help than online and mobile banking can deliver, choose a la carte from our treasury management services such as remote deposit capture, merchant services, sweep accounts, multi-user access, wires, ZBAs, payroll, direct deposit, and more. All of these Treasury Management services can be integrated with your existing business checking and savings accounts.

  • Autobooks: An online accounting tool that automates processes for invoicing, paying bills, accounts receivable, and more.
  • Automated Clearing House (ACH), Payroll, and Wire Services: Reduce overhead costs and save time by automating your payments and payroll.
  • Business Bill Pay: Streamline back office functions and pay bills online anytime, set up electronic payroll deposits, and more.
  • Merchant Services: Get the lowest available rates on credit card processing. Offer your customers more convenience and buying power by accepting all major credit cards.
  • Lockbox Service: Turn receivables into cash more quickly and save time and money.
  • Fraud Protection: Automated tool that ensures only authorized checks clear your account.
  • Sweep & Zero Balance Accounts: Maximize your cash potential by putting idle funds to work, automatically and safely.
  • Remote Deposit Capture: Scan checks from anywhere and they’ll be recorded and balanced even when the bank is closed.
  • Vault Service: Reduce trips to your local banking center and add security with armored car deliveries.


Benefits of Treasury Management for Business

As your business grows, fraud and risk management become more important concerns. Cash management services can help with fraud detection and prevention through services like Positive Pay, approval of certain payments and wire transfers, and more. Other advantages of treasury management include:

  • Time Efficiency: Businesses can save time by streamlining payment processes and reduce hours spent on payment authorization.
  • Cost Savings: Use treasury management tools and resources to detect and identify the cost of bank transactions and other related payment fees. Having access to this data can help businesses see where they might be incurring additional fees and work to mitigate that.
  • Cash Visibility & Forecasting: Gaining control over financial processes can alleviate some of the guesswork in financial planning and reduce costly errors. Forecasting also gives you the ability to obtain additional yield on investments, lower-cost borrowing decisions, and pay down debt methodically. Cash visibility allows decisions to be made in a positive way that affects a business’s bottom line.
  • Improve Productivity: Automate manual processes such as financial data management or automated payment initiation.
  • Fraud Protection: Detects and protects against fraud and breaches. With services like account alerts and ACH, business owners are able to see in real-time if there is suspicious or fraudulent activity happening.

Schedule a conversation with our Treasury Management team!  

Moody Bank offers Treasury Management Services in Texas to help you maintain control over every aspect of your business’ finances. Discover all the ways we can help you enhance your business! See a demo or request more info on Treasury Services today! You can also visit one of our Banking Centers in Houston, Austin, Galveston, and Lake Jackson, Texas.

What is Treasury Management and Why Does My Business Need It? | Blog