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Fremont, CA: A treasury management system (TMS) is corporate software that aids in the automation of repetitive, often manual, treasury activities. CFOs and treasurers may obtain more insight into cash and liquidity while gaining control of bank accounts, maintaining compliance, and managing in-house banking and financial operations by automating these procedures.
It might be tough to understand your organization's cash situation, including location, currency, and liquidity condition. However, using a treasury management system simplifies addressing those queries.
Instead of needing several personnel to spend hours analyzing the company's cash situation using diverse tools and data sources, a treasury management system gives the clarity and insight required to support crucial financial decisions and strategic organizational objectives.
Before the business day begins, a treasury management system may automate the preparation and reconciliation of an organization's daily cash position. Visualizing cash situations by combining bank balances and transactions with predicted cash flows ensures that users have up-to-date, real-time insights into positions across banks, accounts, entities, and geographies.
With an accurate cash position as a starting point, it is easy to create and evaluate global cash projections by day, week, month, or year by utilizing different data sources such as repeated items, ERP data, and historical data.
A treasury management system can assist avoid the time-consuming and error-prone posting procedure to the general ledger (GL) by automating the GL entry process and creating dual multi-sided entries from the bank and internal cash transactions for cash accounting.
Treasury management is a broad term that includes cash management, bank account administration, and financial transactions. Treasury management systems give CFOs and treasurers the insight and data they need to maximize Cash, regulate bank accounts, manage liquidity, ensure compliance, and monitor investments, debt, and intercompany loans.
Companies can manage notional and physical cash pools to provide real-time intercompany positions, interest computations, and reporting.