Treasury management services provide the tools to take your business to the next level by saving time, streamlining workflow and preventing fraud. From IntraFi® services to ACH origination and zero balance accounts, there are many helpful and efficient treasury management services available to fit your business’s needs.
“Treasury management services are designed to help make your life easier, and the right banking partner will help guide you toward the best service for you,” says Alix Kaufmann, VP, treasury management leader at First Federal Lakewood. “We always encourage our business customers to take advantage of these services because it gives them a peace of mind.”
Smart Business spoke with Kaufmann about what treasury management products and services business owners should take advantage of.
how can you Diversify deposits?
If you have more than $250,000 in business funds that you want to ensure are FDIC insured, your first course of action might be to open accounts at various banks. However, banks that offer IntraFi services like ICS and CDARS are a safe choice to make sure your funds are insured by diversifying your large deposits quickly and efficiently — without the hassle.
When your large deposits are placed at participating IntraFi network banks, ICS/CDARS places your money into other financial institutions within the same network. This happens through one relationship with your main bank, and your money is divided into FDIC-insured amounts at or under $250,000.
The most common misconception about ICS/CDARS services is that your business’s deposits aren’t easily accessible. On the contrary — your deposits sit in the available balance and are usable when needed. Liquidity is important. You want to have that money available in case you want to expand your business or use it as collateral. Many times, business deals happen quickly, and you need access to those funds immediately.
Another perk is the lack of monthly service fees when it comes to using ICS/CDARS services.
what are some other Services?
ACH origination. Managing cash flow is crucial for businesses. ACH origination electronically issues payments to or from an external account, either as a same-day transaction or as a future-dated transaction. ACH also keeps your business’s information protected because it travels through an encrypted system, reducing fraud.
Positive Pay. When staying ahead of fraud, Positive Pay helps save you time and money by monitoring your account for both checks and ACH transactions. This service makes sure the checks or ACH payments leaving your account were authorized to be paid and alerts you and your banker if information provided does not match an attempted transaction.
Remote deposit. Many business owners are extremely busy and are commonly short on time. Remote deposit can be a useful tool, allowing you to scan multiple checks at a time using a machine that’s connected to your computer — saving time and a trip to the branch.
what are Additional tools?
QuickBooks®. Additionally, some treasury management tools have a reporting aspect that can be incorporated into QuickBooks, meaning that when transactions have cleared your account, or payments have been stopped or voided, the treasury management system will register that change. This service helps you determine which items marked in QuickBooks are clearing or being rejected. QuickBooks syncs and streamlines transaction information while eliminating manual accounting tasks, saving you even more time.
Zero balance accounts. Zero balance accounts are designed to prevent overdrafts and manual transfers while carrying a zero balance, removing manual work. This service is beneficial if you have multiple accounts you use for payroll, operating transactions and other payables.
By utilizing one, or all, of these treasury management services at your bank, you can be on your way to creating efficient and effective processes that can help your business thrive.
IntraFi Insured Cash Sweep (ICS®) and Certificate of Deposit Account Registry Service (CDARS®)
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