Module 12 Assignment-Treasury Systems

What is the role of treasury management system? With the evolving technology, what

impact contributes to treasury management needed the most?

A treasury management system excels in streamlining and automating manual

operations as well as time-consuming data management tasks, resulting in increased
daily production. Automated authorization and payment initiation decrease dependency
on physical locations and eliminates organizational delays. Treasurers use a TMS to
gain access to and view financial data, as well as to take use of integrated reporting
features that extract real-time data so they may make informed decisions. Treasurers
can optimize their short-term financial management and examine historical cash flows
thanks to real-time data availability and reporting. A major problem is the treasury
management system's complexity, which can be rather high. A treasurer reduces the
number of outside financial relationships held by the organization, resulting in fewer
bespoke interfaces to develop. Employees will gain competency only in the duties they
were performing prior to the system's implementation, posing a high risk of the
technology not being fully utilized. This is why these solutions work best when the
treasurer requires extensive staff training and limits the number of external banking
relationships. It's a good idea to review current treasury activities before deciding on a
Treasury Management System. Examine the technical prerequisites for implementing
the changes you want. In order to be implemented, an effective TMS should ideally
meet all of the team's criteria. Ensure that all stakeholders are kept informed and
involved throughout the process, and that the appropriate people sign off on the
decision. Overall, implementing a treasury management system is the first step toward
improved visibility and workflow efficiency. A TMS not only provides insight and
flexibility in building alternative forecasting models, but it also delivers confidence in
your forecasting by allowing treasurers to fine-tune the forecast and be more confident
in its conclusions by giving detailed variance analysis.