Such a system can be installed locally (using the company’s servers) or hosted on the technical base of the supplier (provider), and access to it can be obtained using a web browser. The most popular foreign providers of such software products are SAP with the Treasury module, SunGard Treasury Systems, Tieto Financial Services, Integrity Treasury Solutions, Richmond Software, Nordic Financial Systems.
However, the implementation of TMS is still largely limited to the list of large corporations. Smaller, resource-constrained companies are struggling to justify the high cost of installing additional software required to integrate new technologies into existing corporate money management processes. But small and medium-sized companies so far mainly use ERP systems and programs that automate only certain functions of the treasury: such as the 1C: Accounting program, which, when refining and establishing links with the “bank-client” systems, can be used as a payment calendar.
Nevertheless, some small companies are now beginning to actively use cloud ecosystems, which include liquidity management tools (planning/forecasting / company cash management), which can be quickly “deployed” without unnecessary costs or inconvenience. Such cloud systems are being developed today by many banks working with small and medium-sized businesses.
Despite the fact that full-fledged specialized treasury automation systems cost a company at least several thousand dollars a year (and then only maintenance, not counting the cost of connection, which can be measured in tens of thousands of US dollars), TMS provides treasurers with significant advantages at all levels of activity. For example, from an investment point of view, the TMS allows the treasurer to better control cash balances with modules cash flow forecasting (Eng. Cash & Liquidity Management ).
TMS allows you to automate most of the company’s operations for managing operating cash flows and making investments. TMS are especially valuable for generating reports on the state of funds of companies with complex organizational structures (groups of companies and holdings).
Unlike MS Excel spreadsheets or MS Access tabular databases, compiled manually or semi-automatically (using macros and cross-links integrated with bank-client systems and accounting systems), TMS allows you to deal with huge amounts of data, while reducing operational risks (unintentional errors or fraud). The implementation of the TMS enables corporate treasurers to gain a consolidated view of all aspects of the treasury activities of the companies and divisions under their control, which is very difficult to achieve with conventional spreadsheets. This naturally streamlines the process of making proper financial and investment decisions.
By timely receiving reliable consolidated information on the state of accounts of all divisions, treasurers can increase the financial (not operating) income of the company, thereby improving the overall financial result of a company or a group of companies, significantly minimizing the risks of cash shortages, problems with operating liquidity, as well as reducing the cost of attracting external financing and getting the maximum return (interest rate) from the placement of temporarily free funds.
Another major task of the TMS is to reduce the time for processing payments and reconciling the status of accounts, which makes the management of working capital more transparent and efficient (for example, by receiving financial messages from partner banks using SWIFT channels and other direct communication technologies).
The emergence of new technologies in corporate finance management is reflected in the role of the corporate treasurer: it is rapidly evolving from simple control over the state of accounts to the implementation of the company’s strategy for forecasting cash flows and hedging risks .
TMS’s technological capabilities for cash and risk management expands the scope of corporate treasury tasks to optimize working capital and other strategic goals in managing the company’s capital.