What is treasury management and does your business need it?
You may have not heard of treasury management in Utah, but it is important to your business. Unfortunately, treasury management has long been relegated to a back-office duty that doesn’t get much attention. And yet, today, treasury management has become a primary revenue driver for financial institutions.
The fact is running a successful business is more complicated than it has ever been. And as compliance, cybersecurity, and fraud threats mount, treasury management services for small businesses might be just what you need. The question now is, how can your company benefit from treasury management? First, let’s take a closer look at the concept.
What is Treasury Management?
Treasury management refers to a broad suite of services that banks and other financial institutions offer to business and nonprofit clients. These services could include things like receivables management, payment processing, or remote deposit capture. It essentially acts as a way to help businesses streamline finances, better manage cash and investments and profit off their financial assets. Put simply, treasury management optimizes your company’s liquidity while mitigating financial, operational, and reputational risk.
Treasury management can encompass any one or all of the following:
- Collections
- Fraud protection
- Merchant services
- Financial disbursements
- Information reporting
- Capital management
- Currency management
- Risk management
- Investments
- Accounts receivables
Forward-thining banks like First Utah Bank use innovative technologies backed by strategic initiatives to help your Utah-based business thrive. Through treasury management services, banks help businesses succeed and in turn, they increase deposit volume and profit from fee-based services.
Do You Need Treasury Management?
Businesses that employ treasury management services provided by their financial institutions benefit in various ways. First, it helps keep your business finances on track and ensures you have more control and efficiency over cash flow, payments, payroll, accounting and more.
Consider the size of your company as well. Single-member LLCs and sole proprietorships may only need basic business banking services, but as your business grows, so will its level of financial complication. At some time you will reach a point where cash management becomes an issue. Treasury management can help businesses stay afloat and better manage their cash as they grow.
Risk management is another primary consideration for businesses that invest in a treasury management service. Because as your business grows, so does the risk involved with running it. When you take advantage of a treasury management service, you benefit in several ways.
How Can Your Business Benefit from Treasury Management?
Businesses can save time by streamlining payment processes and reducing hours spent handling payment authorization issues. If time is money, then relying on treasury management services to streamline your payment processes saves you both. Using treasury management tools and resources will help you identify the cost of bank transactions and other fees.
Advanced treasury management services also provide a wealth of data. Having access to data, knowing how to use it, and providing actionable intelligence all help your business grow. When you have more data to access, you have better cash visibility and forecasting.
Gaining full control over your financial processes alleviates a lot of headaches and guesswork. Financial planning becomes easier and costly errors are reduced. Better financial forecasting allows you to obtain an additional yield on your investments. You also gain access to lower-cost borrowing and you can better pay down business debt. Cash visibility directly impacts an organization’s bottom line.
Finally, treasury management services help you improve productivity, automate manual processes and better manage your financial data or automated payment initiation. Fraud protection services detect and protect your company’s vital financial information from breaches. Account alerts and ACH services allow business owners to check for fraudulent activity in real-time.
How Treasury Management Programs for Utah Businesses Works at First Utah Bank
Traditionally, treasury management services existed to support commercial and other business relationships with the bank. However, at First Utah Bank we have transformed our treasury management services to provide critical functions for businesses. We help Utah-based companies deepen customer relationships and differentiate themselves from the competition. And these services allow us to do the same for our own institution.
First Utah Bank’s treasury management services offer a one-stop-shop for all your organization’s financial needs. Whether it be payment processing or check imaging or integrated receivables, we can help. When you work with First Utah Bank treasury management services, you have the peace of mind of knowing your most critical money affairs are in good hands and handled all under one roof.
Businesses must be able to rely on the banks they work with to capture the full scope of their accounts. But more than that, they need a partner to help them grow and thrive in a challenging business environment. Are you a business based in Salt Lake City, Utah in need of comprehensive treasury management services? If so, contact First Utah Bank today. We’re waiting for your call or visit!