Treasury Management System [TMS] allows automating the important financial operations like getting real-time cash-flow data while communicating with your banking partners. It even ensures that your financial data remains secure. A well-selected TMS can help to streamline business operations and enhance overall performance. The needs of every business differ, so it is crucial to choose one that suits your unique requirements.
Tips to choose an appropriate TMS
Local versus hosted
If you are planning to buy a new treasury management solution, then there are two basic systems called local and hosted. The former is purchased or developed in house and installed on the local servers. It offers exclusive control over the features as well as security. However, you need high-skilled IT staff or 3rd party support to ensure the efficient management of your TMS daily.
The latter is a cloud-based solution. They are software-as-a-service or SaaS arrangements that offer many advantages like high availability, speedy implement, and in-built security. It is a cheaper option to employ TMS.
Get familiar with your current finance operations
To lay the groundwork of a new TMS, examine how your existing finance operations work.
- What processes and procedures are used?
- Do they perform well as expected?
- Are the processes and procedures still relevant or changed since it got written?
Analyzing will help to adjust your financial operations before the installation of a new TMS. It ensures you can get the best from the new system.
Determine your requirements
Discuss with every department, executive personnel, senior members, and stakeholders of your organization, who will get affected by the new TMS. You can detect the existing pain point and take steps to improve it. With a clear idea, you can extensively research the treasury technology that resolves the issues you wish to solve. You may even need an extra software besides TMS to fulfill all your requirements.
Decide on a budget
With everyone on the board will help in determining the budget for the project. There will be a need to gather quotes and estimate total implementation costs. Failure to bring everyone under the radar means wastage of time and effort in finding a perfect solution, only to let it go down the drain by the budget-makers, who were not ready for this cost.
When you research deeper into the options available, you will be surprised to discover features that you were not aware existed. Separate the must features and nice-to-have features as you check the requirement list. The TMS you choose must cover every basic. An expensive and fancy system with myriads of unique features is useless if your staff cannot use it daily.
Plan the implementation of your new TMS project carefully. Work together as a solid project team to manage the execution of the process successfully!