What treasury management means for your business

by Michael Palmer, COO

Deeply understanding the purpose and practice of treasury management is a critical first step when considering using such a service for your business. You likely already have a grasp of the basic concepts tied to this suite of financial support and review tools. However, a more thorough review of the specifics and how they help your company will empower you to make efficient, relevant and productive choices. Ultimately, that allows you to get the most out of the treasury management services you choose to use and put your business in the best possible position for success.

What does treasury management mean?

Treasury management is a more involved concept than many other banking services. This is because it serves as an umbrella term for a variety of functions that your business may or may not choose to utilize. Treasury management from TAB Bank, for example, can include some or all of the following:

  • 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.

While we always provide a dedicated relationship manager to all of our clients as part of our commitment to being involved and focused on your business needs, the other services are available on an a la carte basis. If your company doesn't need or want to use the card distribution functionality, you won't have to include it - or pay for it. If things change for your company in the future and you want to expand or reduce the number of services utilized within the treasury management wheelhouse, that's perfectly fine too.

One way to view treasury management in a more concise manner is to tie it into risk management. Treasury management improves the oversight your business has over some, many or all of its financial functions, reducing the potential for bookkeeping errors, missed opportunities and other missteps. Treasury management can also lead to increased confidence in decision-making related to finances, because of the assurance that information is accurate, current and reliable.

With specialized knowledge and experience so crucial for effective oversight of banking needs, working with an established and trustworthy provider can make a major difference for small and mid-size businesses. Instead of having to hire dedicated staff to fill a variety of treasury management roles, businesses can instead partner with a competent and attentive financial institution to provide the same services.

What does treasury management do for your business?

One of the first changes that business owners and financial decision-makers within a company will see when using treasury management is a less frantic and fractured environment around the many services it covers. Instead of trying to handle a wide range of high-level, sometimes complicated financial tasks in addition to all the other responsibilities that come with overseeing and managing a company, owners and leaders can instead focus more on their specific areas of expertise.

Consistent, accurate financial insight will also come into play as businesses make the many daily and long-term decisions that keep them competitive and in operation. Whether it's choosing to increase purchasing from a supplier or raising staffing levels to handle more incoming purchase orders, your company will have a better picture of its financial situation and can make better choices accordingly.

Improved processes related to everything from secure online banking to merchant services also mean less latency and more consistent sharing of information across your enterprise. You won't have to worry that, because payroll isn't yet complete or incoming payments haven't yet been processed, you don't have an accurate snapshot of your company's financial health. Treasury management is a more cohesive and reliable method for determining your company's current state of affairs.

Of course, finding the right treasury management provider is as important as choosing to use the service in the first place. As you explore your options, be sure to reach out to TAB Bank. Our focus on building successful, long-term relationships means we always have your company's needs in mind.

About the Author

Michael Palmer

As TAB Bank’s Chief Operating Officer, Mike oversees the operational and customer support teams that assist TAB’s clients with their deposit relationships with the bank. Additionally, his teams securely process all the bank’s electronic funds transfers, apply for invoice specific payments across the factoring portfolio, and process thousands of lockbox and other checks per week.<br><br>Mike is a Certified Regulatory Compliance Manager. Prior to his experience at TAB Bank, he spent 13 years at Wells Fargo, the last ten being spent in regulatory compliance roles focusing on international BSA/AML compliance as well as mortgage and consumer lending regulations. Mike holds a Bachelor of Science degrees in Finance and Marketing from Utah State University and a Master of Business Administration from Brigham Young University. He is a graduate from the Graduate School of Banking at the University of Wisconsin –Madison where he completed courses necessary to achieve the Executive Leadership Certificate from the Wisconsin School of Business.

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