Best Practices for Implementing Treasury Management Services

Implementing a treasury management system can be a game-changer if you’re looking to streamline your finances, improve cash flow and reduce operational headaches. However, just like with any major business tool, success doesn’t happen by chance — it takes careful planning and execution. To make sure your treasury management solution delivers the results you expect, follow a set of best practices from the start. From understanding your cash management needs to training your team, the right approach will help you maximize the benefits of your solution and set your business up for long-term financial success.

Let’s explore the best practices that will guide you through a smooth and effective implementation process.

1. Start With a Clear Financial Strategy

Before you dive all-in on a treasury management solution, start by identifying the specific goals you want to achieve. Here are examples of questions you can ask yourself: How does your money come in? How does your money go out? What do you want to do with it while you have it? Identifying challenges and understanding your objectives will guide your decision-making to make sure the solution can deliver the most value in the areas that matter most to your business.

2. Find a Treasury Management Solution That’s Easy to Use

Choosing a treasury management solution that is intuitive and user-friendly is essential. The system should have a simple, clear interface with easy-to-navigate dashboards, automated workflows and preconfigured templates for common tasks like cash flow forecasting, bank reconciliation and payment processing. A user-friendly treasury solution empowers you to quickly adopt and use the system without extensive training or technical expertise.

Focus on solutions that provide essential treasury functions — such as cash management, payments and forecasting — without the bells and whistles that might be more suited to larger companies. Many treasury management providers offer tiered pricing models or subscription-based options, which can help you manage costs more effectively. Look for a system that offers a core of treasury functions at an affordable price, without unnecessary complexity or expensive add-ons that you may not need at the start. This way, you can ensure that you’re getting good value for your investment while avoiding features that might be underutilized in the early stages of your business’s growth.

3. Look for Automation To Save Time and Reduce Errors

Automating routine treasury tasks like cash forecasting, transaction reconciliation, payment processing and reporting can free up your time for more strategic decision-making. For instance, a treasury management system can automatically generate cash flow forecasts based on historical data and reconcile transactions without requiring manual data entry. Automation also ensures that calculations are accurate and consistent, which reduces human error. This leads to fewer discrepancies, faster reporting cycles and more reliable financial data.

Plus, automation improves financial controls and helps with risk management. Alerts can notify you when payments are due, allowing you to take proactive action. Payment processing can be automated to ensure that invoices are paid on time. Similarly, many solutions offer fraud detection tools that can flag suspicious transactions or unauthorized activities based on preset parameters, providing an added layer of security.

4. Integrate with Existing Accounting and Financial Systems

Centralize your financial information by integrating your accounting software, like QuickBooks, with your treasury management solution. This enables real-time synchronization of bank transactions, accounts payable and accounts receivable so your team doesn’t have to manually input data into multiple systems. For example, bank statements and transactions can automatically populate your accounting system, reducing the risk of errors and saving valuable time. This also ensures that your cash flow forecasts, payments and liquidity management are based on the most accurate and up-to-date financial data, streamlining the decision-making process.

This also enhances reporting and compliance. Automating data transfers reduces the need for manual reconciliation, allowing for quicker and more accurate financial reporting. When your systems are integrated, you can produce comprehensive financial reports, such as cash flow statements, income statements, or balance sheets, that pull directly from the treasury management software. This is especially valuable if your business needs to track financial performance across different departments or locations.

5. Ensure Scalability for Future Growth

As your business grows, your treasury management needs will likely become more complex. The treasury management system should be able to scale to handle fluctuating cash flow, new banking relationships, international expansion or changes in financial strategy.

In addition, the system should be able to adapt to changing market conditions and evolving regulatory requirements. For example, if your business plans to enter new markets in the future, your treasury management tool should be able to accommodate these changes without requiring a complete system overhaul.

6. Focus on Security and Compliance

A good treasury management solution should ensure that financial information is protected from unauthorized access. Multi-factor authentication should be a standard feature to provide an extra layer of protection for users logging into the system. Role-based access controls allow your business to assign specific permissions to different users, limiting access to only the data or functions necessary for their roles. These features help reduce the risk of internal fraud and external cyber threats to keep sensitive financial information secure.

Compliance is another critical aspect, as your small businesses must adhere to the legal and regulatory requirements of your location and industry. The treasury management solution should help you stay compliant by offering features that support regulatory reporting, track audit trails and ensure proper data handling. It’s important to choose a system that is regularly updated to stay aligned with changing compliance standards and laws.

7. Meet With Your Local Bank for Tailored Treasury Management Solutions

Your local community bank can help evaluate your business's financial operations — such as cash flow, payment processing and risk management — and recommend a solution that integrates well with the bank’s systems. In addition, banks can provide access to demo versions or trial periods of treasury management products so you can assess the functionality and ease of use before committing to a long-term solution.

A bank can offer insights into pricing models and subscription costs for different systems to fit within your budget. Many banks offer customized treasury management packages that include payment solutions, fraud prevention tools and reporting capabilities tailored to small businesses, often at a discounted rate or with added support. 

8. Receive Ongoing Training and Support

Once the treasury management system is in place, make sure all users — whether they are other business owners, accountants or finance staff — are properly trained to use the system. Training should cover all key functions, including cash management services, forecasting, payment processing and reporting tools. You can customize the training to the specific needs of your business, focusing on the tasks that are most relevant to your day-to-day operations. A well-trained team will be able to take full advantage of the system’s capabilities, which reduces errors and improves overall productivity.

Ongoing treasury management consulting is vital for troubleshooting issues, addressing questions and making sure the system remains effective over time. Choose a treasury management provider that offers robust customer support, whether through a dedicated helpline, chat service or extensive knowledge base. It’s also helpful to have a designated internal point person or a small team who can support other users and manage minor issues or updates. Regular follow-up sessions or refresher courses can also help users stay up to date with any new features or best practices.

Regularly check in and see how well the treasury management solution is supporting your business. Collect feedback from those using the system to identify any pain points or areas where the system might be underutilized. Regular reviews also help to identify new requirements that may come up as your business grows, such as handling more complex transactions, expanding into new markets or requiring more advanced risk management features.

Northwest Bank offers tailored treasury management solutions to support your small business. Reach out to our Treasury Management team today for support with your growing business.