DEFINITION:
A “Treasury Management System” (also known as a Treasury Workstation) is a term for a treasury-oriented system or software package that specializes in the automation of manually-intensive, repetitive steps needed to manage a company’s cash flows. The system allows a company to efficiently and effectively communicate with financial institutions in order to manage cash, transactions, forecasts, FX, and even investments and debt. The Treasury Management System can seamlessly interface with a company’s general ledger offering an instant financial dashboard. The financial crisis has heightened the need for better transparency into a company's cash positions as the traditional lines of credit have become increasingly scarce. Through the proper selection and implementation of a Treasury Management System corporate treasurers can efficiently respond to the financial needs of the company.
One of the biggest issues you will encounter when setting up a Treasury Management System is bank connectivity and mapping of bank transactions. It is imperative that you as a Treasury professional understand the following:
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2.) Find out how often your banking partner modifies their BAI coding (especially lines 600+)?
3.) Mapping for BAI and MT940 transactions are different and require an understanding of the different nuances.
4.) Some TMS systems require Crystal reporting skills to create management level reporting. This is a key given that the TMS providers charge a considerable amount for customization.