As a business owner, knowing the difference between cash management vs. treasury management to efficiently streamline and grow your business is crucial.
While the two terms may be used interchangeably, they have different financial impacts on your company. Integrated Cash Logistics is here to provide more information about how cash management services work, along with how they can benefit your business.
Discover how CashSimple® meets your unique needs to streamline operations and keep accounting ledgers accurate.
What is Cash Management?
Put simply, the meaning of cash management encapsulates a business’ day-to-day cash flow and cash management. This includes multiple key activities a business will engage in, including:
- Managing Receivables: Cash management helps a business handle receivables and inventory that come in daily, ensuring there are goods and services for customers.
- Determining Account and Bank Organization: A cash management system, like CashSimple®, allows businesses to organize banking and account information for withdrawals, deposits, cash exchanges, and more.
- Controlling On-Hand Cash: Cash isn’t going anywhere anytime soon, so having an adequate amount of cash on hand helps a business run smoothly.
- Directing Short-Term Investments: Short-term investments can help a business grow its capital, and cash management helps a business keep all accounts and investments organized.
What is Treasury Management?
Treasury management encapsulates a lot of what cash management does, but it does so on a larger scale, which is crucial for optimizing a company’s structure and long-term financial stability. The explanation of treasury management can be further broken down into the following roles:
- Mitigating Financial and Operational Risks: Long-term management of cash and assets helps businesses protect their finances and operational needs.
- Optimizing Liquidity: Treasury management also ensures the company has enough liquid assets to conduct business without losing money.
- Enhancing Financial Planning: Treasury management in banks allows businesses to develop long-term stability.
- Improving Investment Returns: Treasury management helps companies invest their money in ideas that will give better results and returns.
Schedule a demo with Integrated Cash Logistics and learn how to shorten your distance to cash.
Cash Management vs. Treasury Management: Key Differences
Treasury and cash management have multiple overlapping factors, but it’s important to note that they do diverge distinctly in the following ways:
Scope of Work
Cash management mainly deals with daily cash flow and liquidity. In contrast, treasury management in financial institutions handles wider financial strategies. These include risk management and investment planning. Treasury management might seem more important for long-term success. However, both tasks are vital for a company’s growth and stability.
Timeframe
The timeframe of both tasks also affects what practice your business is engaged in. Cash management focuses on daily tasks and cash flow for your business’s needs every day, while bank treasury management emphasizes long-term planning for the company’s future financial health. Treasury management teams address needs over weeks and months, instead of on a daily basis.
Tasks
The types of tasks involved in both cash and treasury management can overlap. While both management systems focus on the roles of investments, money, and liquidity for the company’s financial health, cash management tasks are much more pinpointed and direct with banks and on-hand cash. On the other hand, treasury management focuses on more broad tasks for operational and financial risk, such as investment needs and business partnerships or accounts.
From retail to restaurants and banking, CashSimple® is the right solution for any industry.
Technology in Cash and Treasury Management
Technology is a great asset for businesses looking to enhance their treasury and cash management in accounting. Digital tools, such as cash capture technology, help automate and amplify a company’s efficiency, accuracy, and decision-making for both functions. This is especially important for growing businesses, as maintaining cash visibility is imperative for daily and long-term needs.
Cash Management Tools
Many tools can help businesses improve cash management in banks and daily services. These include cash flow forecasting software, smart safes, and automated payment systems. For example, smart safes help businesses optimize their cash handling by streamlining change orders, increasing security, and eliminating cash discrepancies.
Treasury Management Tools
Various treasury management tools support long-term financial planning, investment management, and risk mitigation, such as:
- Treasury Management System (TMS): These systems are large, complex tools that are generally reserved for established businesses because of how expensive and expansive their upkeep is. However, they do provide multiple benefits, such as consolidating financial data, identifying potential risks, and offering multi-currency support.
- Risk Management Platforms: Multiple tools solely focus on risk management for businesses, ensuring that companies are aware of how their currency could be affecting their liquidity and investments.
How ICL Optimizes Cash Management and Treasury Management
Integrated Cash Logistics and our comprehensive solutions can help your business optimize both cash and treasury management. Our services not only streamline your cash flow but also work to improve overall operational efficiency, ensuring your business will be around for the long haul. In fact, there are many ways to optimize your company’s financial health.
Learn the benefits of cash management technology and how it can transform the way you do business.
Streamlining Cash Flow with CashSimple®
Our CashSimple® technology solution makes controlling your cash easy. Not only does our cash capture technology improve cash flow, but it also automates deposits, reduces delays in change orders, and provides real-time access to your cash. This way, you can always know that your business has the liquidity you need to meet operational demands.
Improving Operational Efficiency by Reducing Manual Processes
ICL can also minimize your company’s risk of errors and inefficiencies by reducing multiple cash handling processes. With the lower risk of human error or theft, you can rest assured that your business can focus on core tasks instead of taking the time to manually reconcile cash discrepancies.
Gaining Real-Time Insights for Better Financial Decisions
Our smart safes provide real-time visibility into data that helps your business make informed financial decisions, both for the short- and long-term. This can increase your company’s cash and treasury management, providing up-to-date cash flow information to enable accurate planning and risk management.
Reducing Risk with Comprehensive Cash Handling Solutions
ICL’s secure cash-handling services help businesses mitigate the risk of theft, loss, or delayed deposits. This streamlined cash management helps reduce daily financial risk, along with improving treasury management by offering a stronger financial strategy for enhanced asset and investment strategy needs.
Eliminating Delays with Provisional Credit-Free Deposits
Provisional credit can quickly derail how a business handles its daily accounting, receivables, and cash handling. On the other hand, ICL can help your business eliminate the need for provisional credit by immediately buying your cash from you as soon as you deposit it into the safe. This reduces risk while improving short-term cash management and long-term treasury planning.
Optimizing Costs by Consolidating Services
Integrated Cash Logistics also helps businesses consolidate their cash handling services, reducing costs related to manual processes, armored car services, and inefficient cash flow management. We provide one point of contact for all your company’s needs. This helps reduce the risk of late pickups, theft, and operational problems.
Take Control of Your Cash and Treasury Management with Integrated Cash Logistics
Effective and streamlined cash management is essential for your business’s prolonged and long-term success. Integrated Cash Logistics and our cash capture solution assume full responsibility for your company’s cash as soon as you deposit it in our safe. This way, you can have access to real-time reporting information to help enhance treasury management while also improving cash management processes.
Reach out to our team today to schedule a demo and learn more about our cash management systems, CashSimple® cash management vs treasury management technology, and how we can streamline your company’s financial health.
