Treasury management: Vital support for your business's finances

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by Nick Craven, AVP Business & Consumer Banking

Small-business owners have to wear many different hats. For one-person enterprises, owning a company means managing every single aspect of operations or outsourcing them to a professional like an accountant. In larger enterprises, there are more employees to help handle the increasingly involved and complex tasks required to keep the company moving forward.

In all cases, organizations need to have dependable in-house staff (even in cases where that staff is just the owner) and outside providers who can bring specific knowledge, experience and abilities to the table. When it comes to managing business finances and the many tasks that go along with it, from payroll distribution to merchant services, turning to a dependable financial institution that offers treasury management can be an especially beneficial decision.

What is treasury management?

In this context, treasury management refers to utilizing an outside service provider to manage a variety of different financial needs. In essence, your business turns to a trustworthy organization, like a bank, and leverages its experience and knowledge within that industry to make sound decisions and provide the necessary oversight. In many ways, this is very similar to working with a professional in a specialized role, whether it's a consultant, lawyer or something else entirely.

Treasury management can be hard to define in very specific terms because the service is very adaptable, and can be changed based on the needs of individual businesses. Some companies may want to take advantage of the full range of treasury management services, which stretch from payroll to managing corporate credit cards and financial balance reporting. Other organizations may have successful, sustainable processes in place for addressing some financial needs, but require support for others. With TAB Bank, you can customize our treasury management offerings so that your business only utilizes what's useful and doesn't have any duplicate processes in place.

Of course, there are a foundational range of treasury management services that we offer. They include:

  • A dedicated relationship manager.
  • Secure online banking.
  • ACH origination and payroll distribution.
  • Online domestic and international wire transfer services.
  • Remote deposit capture.
  • Lockbox processing.
  • Positive pay.
  • Loan and account sweeps.
  • Card products and controls.
  • Card distribution.
  • Financial balance reporting.
  • Merchant services.

Why is treasury management a good choice for my business?

Large businesses have the resources and organizational infrastructure and need to bring accounting, legal and many other specialized services in house and make these professionals staff members. However, many small and mid-size organizations don't have this luxury. It's expensive to hire an employee on a full-time basis, not only because of direct salary but also due to the need to pay benefits and provide resources - from office space to computers and specialized software - that is often required.

And when companies hire a specialized staff member for these kinds of support services - those that are vital to continued operation but not directly tied to the company's industry or line of work - they can have trouble maintaining consistent workloads. Consider how an accountant can be especially busy during quarterly filing periods for business taxes for a small business, but may have significant downtime between those peaks of activity.

With treasury management as a service, your company doesn't have to worry about consistently finding work for specialized staff to take on, nor paying for all of the costs that come with a full- or even part-time employee. Instead, you can benefit from a predictable fixed cost that's easy to include in a budget and factor into future decisions. More importantly, you'll have a team of dedicated, experienced and capable professionals handling the treasury management functions you want to outsource. And these benefits are just as useful for big businesses as they are for small and mid-size ones.

TAB Bank is proud to offer a wide variety of business banking services that support our clients, from one-person businesses to large corporate entities. With decades of experience offering effective business banking and lending options, we have the institutional knowledge to make prudent decisions and help your business reduce risk in terms of treasury concerns. To learn more about how treasury management can help your business, get in touch with us today!

Are you looking for more information about Treasury Management?  We have it.  Check out our eBook titled, What makes businesses turn to Treasury Management?  Click on the tile below to download this additional resource.


What Makes Businesses Turn to Treasury Management?

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