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How to Leverage Treasury Management Solutions That Drive Business Results

How Two Businesses Benefited From Treasury Management Integration and Automation

Today’s corporate treasury manager is deluged with data. Usually, their biggest challenge isn’t accessing the right financial data — it’s organizing and integrating this data. 

 

Companies need treasury management solutions that incorporate their data into their internal systems while automating manual treasury management processes. 

 

Treasury management solutions 

 

A survey by the Aberdeen Group found that best-in-class organizations are 50 percent more likely than all other organizations to use integrated treasury and risk management solutions to solve payment, financial and operational problems. 

 

Unfortunately, many businesses don’t make the best use of their financial data. This negatively affects their decision making, forecasting and cash management.

 

The good news is that bank treasury management solutions can help companies incorporate far-flung data into their internal systems while automating manual treasury management processes. Such solutions include:

 

  • Data integration. Merge the financial data stored within your bank’s systems with the data stored in your company’s internal accounting system with an information management solution. This automates and streamlines many processes that were performed manually.  
  • Electronic lockbox service. Consolidate the posting, processing and reporting of accounts receivable and bank deposits with receivables lockbox. You’ll eliminate manual data entry, have fewer errors and enable your employees to better focus on revenue-generating activities. 

 

Effective payables processing  

 

Historically, most businesses have focused on improving receivables processing. Now many companies are focusing on effective payables processing as well. Use payables lockbox to:

 

  • Gain greater A/P efficiencies
  • Minimize payment processing delays and vendor disruptions
  • Improve cash forecasting 

 

Let’s look at a couple examples:

 

Company A 

 

One middle-market company was receiving and processing 5,000 invoices each month in its corporate office. Each invoice was manually opened and entered into the accounting system and then re-entered into a separate system to be routed for payment approval. It then had to be routed back into the accounting system for payment to be made. 

 

Company A approached Cadence Bank to see how integration and automation solutions might help them streamline their payables process. Working with the CFO and accounting team, Cadence Bank helped the company implement a new, centralized accounts payable solution that consolidated the two separate systems for more efficient invoice processing and approvals. 

 

The Cadence Bank solution gave the company access to same-day information, which improved cash forecasting and helped them identify where possible bottlenecks might exist. The solution also ensured that invoices would be paid in a timely manner, allowing the company to take advantage of prompt-payment discounts offered by vendors.  

 

Company B 

 

Company B is a middle-market company with 25 subsidiaries. When they came to Cadence Bank, they were processing each subsidiary separately in their accounting system, with separate accounts, disbursements and collections (including merchant accounts) for each. As a result, the company was paying bank fees and charges for 25 different bank accounts. 

 

Cadence Bank’s Treasury Management team showed Company B how to consolidate the 25 subsidiaries into a single account, with fees and charges for just one account. We also showed them our tools for effectively managing a multi-subsidiary environment.  

 

Working together, Cadence was able to provide integrated information that allowed the company to reconcile credit card transactions and view chargeback details of each subsidiary in this single account. Cadence was the bank that delivered a total treasury management solution. 

 

Reducing fraud risk exposure

 

Guarding against payment fraud should be part of the planning process any time a company is embarking upon a major treasury integration and automation initiative, since payment fraud risk exposure is significant.  

 

The main tools companies can use to combat payment fraud are Positive Pay and ACH Positive Pay (for electronic payments). In fact, four out of five companies that responded to a recent survey said they use Positive Pay most often to guard against payment fraud. 

 

 

Ready to learn more about why you should implement strategic integration and automation initiatives? Read our eBook: The Benefits of Treasury Management Integration and Automation. 

 

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.

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