What is Treasury Management and How Can It Help Your Business?   

 Running a business means juggling a lot of tasks, from paying bills to collecting payments and keeping an eye on your cash flow. That’s where treasury management comes in. While the term “treasury management” might sound intimidating, it’s really just a handy toolkit to help you manage your company’s money efficiently to help keep everything running smoothly.  
 
So let’s explore five ways treasury management can benefit your business.  

1. Fraud/Risk Control: Protecting Your Hard-Earned Money 

As a business owner, it’s crucial to protect yourself from financial threats such as fraud and risk. So, having tools and practices to spot and prevent unauthorized transactions plays a huge part in helping you avoid losses from fraud. Take Positive Pay, for example, which allows you to identify check and ACH discrepancies and irregularities to compare them with your authorized list to help catch suspicious actions early.

2. Payable Solutions: Making Payments a Breeze

Paying bills and keeping track of outgoing payments can be a huge undertaking. It’s like juggling multiple things at once and just hoping nothing falls through the cracks. But imagine having a system that handles all your outgoing payments in one place, making sure they’re done on time and accurately. This not only keeps your suppliers happy but also helps you manage your finances smoothly. Whether it’s setting up automated payments or using electronic methods, having good payable solutions can really help simplify the entire process.  

3. Receivable Solutions: Speeding Up Getting Paid 

Managing your receivables is like having a personal assistant for your business finances. It’s all about finding smarter ways to send out invoices, making it easier for your vendors and clients to pay, and keeping track of outstanding payments. The goal is to get your hard-earned money into your account quickly and save you from the hassle of having to follow up on payments.  

4. Funds Management: Keeping an Eye on Your Money 

Funds management is like having a bird’s-eye view of your business finances. It involves keeping track of your cash flow to ensure you have enough money to cover expenses while also making the most of extra funds. This might involve investing extra money to make a bit more or simply ensuring that there’s always enough in your account to avoid being overdrawn. With good funds management, it’s easier to make wise decisions about your business finances.  

5. Information Reporting: Knowing Your Financial Health 

Information reporting can help give you detailed insights into your business’s financial activities. It’s like having a financial roadmap that shows you where your money is going and coming from. This can include regular reports on your cash flow, payments, and receivables, helping you make informed decisions. With clear and timely information, you can keep a pulse on your business’s financial health.  

We’re Here to Help 

We all could use a helping hand when it comes to managing finances, even business finances. That’s why at Arkansas Federal, our business services team is dedicated to supporting you in handling payments, collecting money, managing funds, safeguarding against fraud, and so much more. Our goal is to make treasury management simple and effective, so you can focus on what you do best—running your business. Reach out to us today to learn how we can support your financial success!