Treasury management system

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A treasury management system (TMS) is a software application which automates the process of managing a company's financial operations. [1] It helps companies to manage their financial activities, such as cash flow, assets and investments, automatically. [2] A TMS is commonly used to maintain financial security and minimize reputational risk. [2] [3] It can be used by a company's internal management, and may be purchased from a technical supplier. [2] [4]

Contents

Functions

A TMS can use data to analyze and report payments, cash management and flow, banking and accounting. [5] Its functions are:

There are two types of the TMS: local [5] [1] and cloud-hosted (or cloud-based) systems. [5] [1] Local systems are installed on a business's home server, and enable maximum control of features and security protocols. [1] [5] Cloud-hosted systems are more economical, more serviceable and can be deployed more quickly. [1] [5]

TMSs are transferring to, and improving, the cloud-based system. [18] Software as a service (SaaS, a subscription system) can upgrade more quickly [19] and is becoming more popular. [18] The most important part of a cloud-based system is data protection, [18] [19] and improved data encryption or databases in a country with tight data security laws is a TMS trend; market consolidation is also a trend, enhancing functionality. [18] An increasing number of companies have adopted cloud-based systems, which are evolving in features and security. [19]

See also

Related Research Articles

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References

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