Why businesses should take advantage of treasury management services

When it comes to running a business, efficiency is top of mind for many business owners. What can they do to make that a reality?

First Federal Lakewood experts Scott Gnau, commercial lending team leader, and Alix Kaufmann, VP, treasury management leader, say the key is to make the most out of your banking relationship by taking advantage of treasury management services.

“The right banking partner will walk you through and help you understand your existing banking products and how you can utilize other services to amplify your business,” says Kaufmann. “It all stems from education.”

Smart Business spoke with Gnau and Kaufmann about how businesses can expand their banking relationship.

Why should a business make it a priority to explore treasury management?

Treasury management can provide the tools you need to take your business to the next level by banking efficiently and safely. By utilizing services like Positive Pay, Remote Deposit Capture or ACH origination, a business can save time managing their accounts and ensuring payments are received by the end user. If your employees are wearing numerous hats while working on the accounting and cash management side of your business, treasury management services may also help with eliminating inefficiencies within those processes.

For example, you may consider ACH origination for your business, a service that allows you to create debits and credits to and from your account so you can process transactions electronically. A secure credit transaction can be processed as a same-day credit, and the other party receives funds that same business day.

What are other benefits of treasury management?

Businesses can take advantage of the fraud prevention component of treasury management, too. They can be set to recognize abnormal transactions and reach out to you about those problems. Plus, it alerts your treasury management team, which enables them to take a proactive approach to managing transactions that shouldn’t be hitting the account.

If you have multiple business accounts that you use for operating transactions, payroll and other miscellaneous payables, zero balance accounts will help you get better account insight and management. These primary accounts are designed to prevent overdrafts and manual fund transfers while carrying a zero balance. For example, your primary account will transfer enough money to your subsidiary account to pay a vendor. If any money is left over in your subsidiary account after payment, then it will be moved back to your primary account. That way, your subsidiary account will maintain a balance of zero.

Another attractive feature is the reporting mechanism that can be incorporated into QuickBooks®. When transactions have cleared an account, or payments have been stopped or voided in QuickBooks, the treasury management system will register that change.

How can businesses determine which products and services fit them best?

A discussion with your banker or a treasury management expert will help you determine which banking products and services fit your business best. You may find value in using a product or service you currently don’t have because it provides efficiencies between employees or protects against fraud. Your banker can make recommendations or suggestions that are worth considering, whether it’s a permanent change or a test pilot temporarily.

When working with a treasury management team, businesses may also benefit from education surrounding what banking products could be a good fit for current or future goals. Making the most out of your banking relationship is key to finding new opportunities to grow your business, too. With the right partner, you will get the product and education you need to stay updated on the current market. ●

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Scott Gnau

Commercial Lending Team Leader


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Alix Kaufmann

VP, Treasury Management Leader


Explore treasury management options that can improve business efficiency