Treasury managed services

Treasury managed services are customized tools and solutions, often provided by banks and financial technology companies, that help businesses streamline daily operations, simplify financial processes, optimize liquidity, and mitigate financial risks. These services help businesses of all sizes to manage their money more effectively than manual, spreadsheet-based processes.

Treasury management services encompass a suite of integrated solutions:

• Cash and Liquidity Management: Ensures that a company has adequate cash on hand to meet short-term obligations while investing excess funds to maximize returns. This often involves automated sweep accounts and cash pooling.
• Payments and Receivables: Automates accounts payable and receivable processes (e.g., via ACH transfers, wire transfers, digital invoicing, and lockbox services) to speed up collections and streamline outgoing payments.
• Fraud Prevention: Includes security measures such as Positive Pay (matching checks to an issue file), ACH filters, and dual authorization protocols to protect against unauthorized transactions and cyber threats.
• Risk Management: Identifies, assesses, and mitigates financial risks, including foreign exchange (FX) exposure, interest rate fluctuations, and credit risks.
• Financial Planning & Reporting: Provides real-time visibility into financial data through dashboards and reports, enabling more accurate cash forecasting, scenario analysis, and strategic decision-making.
• System Integration: Connects with existing Enterprise Resource Planning (ERP) systems and accounting software to centralize financial data and automate workflows across departments.

Implementing treasury managed services can provide several advantages for a business:

• Improved operational efficiency by automating repetitive tasks, reducing manual errors, and freeing up staff for more strategic activities.\

• Enhanced cash flow and visibility through real-time monitoring of cash positions across multiple accounts and entities.\

• Reduced costs by optimizing banking fees, minimizing errors, and improving overall financial processes.\

• Stronger security and regulatory compliance with built-in controls, audit trails, and automated monitoring systems that help meet requirements like SOX or IFRS standards.

Treasury management insights from experienced industry professionals

• Leverage top treasury/consulting talent as needed instead of having to hire full-time employees/specialists
• Leverage best-of-breed treasury technologies
• Take advantage of competitive pricing at a predictable subscription or monthly fee
• Utilize ongoing delivery using top-tier software and services
• Adopt the full solution in as little as eight weeks

Complete cash management solutions

We assist clients who lack a dedicated treasury function, as well as organizations with small or nonexistent treasury groups. We also support organizations that currently execute cash management activities manually through spreadsheets, which can be time-consuming and error-prone. Additionally, we help companies whose limited visibility into their bank accounts often requires manual retrieval of information from various banking platforms. By addressing these challenges, RSM helps enable organizations to streamline cash management processes, improve accuracy and enhance overall financial decision making.

RSM Treasury managed services offers the option to consolidate all your banking information into a single source of truth by integrating bank accounts into a treasury technology solution. It consolidates cash positioning (CP) and cash forecasting (CF) data sources, such as accounts payable and accounts receivable ledgers, bank statements and more. RSM prepares CP and CF analyses using leading treasury technology, leveraging templates aligned with your preferences.

These analyses generate insightful reports, including end-of-day cash availability and cash projections with multidimensional adjustments, that are distributed to all relevant stakeholders on a timely basis according to your schedule.

Cash management client spotlight

A U.S.-based manufacturing company was grappling with significant cash management challenges, including limited visibility into their daily cash positions and reliance on Excel for cash forecasting. Their cash management approach yielded an accuracy rate of only 50%–60%, leading to a limited understanding of their sources and uses of cash. Inefficient processes, including manual, time-consuming activities prone to errors, further complicated their cash management and decision making.

With RSM Treasury managed services, the company experienced a notable improvement in their cash management practices, including:

• Enhanced cash visibility gained by connecting their bank accounts to RSM’s treasury tool
• Improved cash forecasting accuracy by at least 15% by integrating multiple sources of information into RSM’s treasury tool, combined with the system’s forecasting capabilities
• A deeper understanding of their primary sources and uses of cash across the company

As a result, the company realized significant annual savings and projected a three-year return on investment translating to a return of two to four times on their investment. This strategic shift not only optimized their cash management but also positioned the company for sustainable growth and financial stability.

Extensive treasury foreign exchange (FX) risk management support

In addition to clients who lack a dedicated treasury function or have small or nonexistent treasury groups, we also support organizations whose profit and loss (P&L) statements are currently affected by market fluctuations and those with limited or nonexistent FX risk management programs. By addressing these needs, we enhance their financial stability and risk management capabilities.

RSM Treasury managed services includes tailored FX risk management programs to meet your current and future needs.  Our solutions consolidate FX exposure data, such as AP and AR ledgers, bank statements, revenue, and expenses. RSM prepares FX exposure analysis and provides hedging recommendations in alignment with your FX risk management policy, using top-tier treasury technology.

The RSM team generates insightful reports that include FX exposures, derivatives in place to mitigate FX exposure, month-end analyses (e.g., mark-to-market), and upcoming settlements or deliveries. Settlement information is integrated into the treasury technology solution, and reports are distributed to all relevant stakeholders on a timely basis according to your schedule.

FX risk management client spotlight

A U.S.-based manufacturing company with operations in Mexico and sourcing materials from the Philippines faced significant FX exposure due to high-volume transactions in local currencies in the respective countries. The client lacked a formal FX risk management strategy, which posed substantial financial challenges, affecting their overall financial stability and decision-making processes.

After adopting Treasury managed services, the company analyzed their exposure to FX volatility in detail and entered into FX risk derivative positions to limit the negative effects, helping control the results of month-end revaluations. By implementing a comprehensive FX risk mitigation strategy with RSM, the company realized several benefits, including:

• Generating significant annual cost savings from enhanced FX risk management and process improvements
• Projecting a three-year ROI of 8 to 18 times, translating to a significant financial benefit, improving cash management practices but also positioning the company for sustainable growth and financial stability

Ready to get started?

With RSM Treasury managed services, our team will assess your company’s unique needs, and then help you identify the right treasury technology solution and ongoing services to support those needs. Contact our team today to learn more and to start optimizing your treasury operations.

Frequently Asked Questions (FAQ)