What is a treasury management system?

May 10, 2022
|By Eka Marketing

Treasury management systems (TMS) is an enterprise software solution that automates repetitive and critical financial operations in a secure and efficient environment to provide visibility and control over treasury and risk functions . It offers in-depth visibility into cash positions across multiple entities to ascertain liquidity and forecast, and understand currency exposures to manage/hedge risk, accompanied by visual analytics and dashboards that aid insightful decision making.

Key elements of treasury management systems:

  • Bank statement consolidation and reconciliation
  • Cash projection and liquidity plan creation
  • Forecast tracking, monitoring and variance analysis
  • Track credit facility, evaluate tranche composition, headroom and lower cost of borrowing
  • Assess working capital invested in operations

TMS comes with an assured level of security, performance and uptime with automatic updates and upgrades. It empowers businesses to view and control cash, liquidity and risk positions as well as manage working capital/funding.