As a business owner, you can do it all \u2026 but you probably shouldn\u2019t. When your business expands, so do your business needs, and they only get more complicated as time passes. Whether you\u2019re paying your team or getting paid by hard-won customers, you want a strategy that takes you all the way \u2014 one that is easy to manage, helps your business grow, and lets you control your finances without drowning in the daily details.<\/p>\n\n\n\n
If that\u2019s your goal, you\u2019re looking for treasury services. These are the building blocks for any company\u2019s finances. Treasury services don\u2019t manage your money for you, per se, but they do make it much, much easier to simplify, customize, and automate your company\u2019s finances.<\/strong> Here\u2019s how to figure out which ones you need.<\/p>\n\n\n\n Before we dive into the tools themselves, it\u2019s worth mentioning that treasury services are often known by several names. Some financial institutions call it treasury management, while others call it treasury services, and still others say cash management. From a big-picture vantage, the terms tend to mean the same thing.<\/p>\n\n\n\n At ICCU, we use the phrase treasury services. This includes three sub-categories:<\/p>\n\n\n\n No business is alike, yet all successful businesses know how to optimize their account receivables, account payables, and fraud prevention. Here\u2019s what each means and the best way to use them.*<\/p>\n\n\n\n Accounts receivable, sometimes called \u2018receivables,\u2019 represent the money due for the product or service you delivered. It refers to any items on your balance sheet that others owe you, particularly if you expect the balance to be paid in the near term, which is why they\u2019re considered current assets.<\/p>\n\n\n\n To manage your receivables, you\u2019ll likely use one or several of these treasury services:<\/p>\n\n\n\n Accounts payable, sometimes called \u2018payables,\u2019 represent the money you owe. This is usually shown on your balance sheet as a current liability. These include vendor, supplier, creditor, and payroll payments.<\/p>\n\n\n\n To manage your payables, some or all of these treasury services will be invaluable to your business:<\/p>\n\n\n\n Where receivables and payables dictate the cash flow in and out of your business finances, reconciliation and fraud mitigation help keep that process running smoothly, protecting your funds from external threats \u2014 and internal accounting mistakes.<\/p>\n\n\n\n In accounting, reconciliation<\/strong>, sometimes called double-entry accounting, refers to keeping two sets of financial records. This acts as a check-and-balance system for every transaction made, keeping your business protected from inaccurate accounting and fraud.<\/p>\n\n\n\n Though it may use different tools, fraud mitigation<\/strong> is the same in accounting as it is in other aspects of your business: It\u2019s there to keep your funds safe from fraudulent activity.<\/p>\n\n\n\n To manage your reconciliation and fraud mitigation, some or all of these treasury services can help:<\/p>\n\n\n\n Business ownership is only as easy as you make it. With the right tools in hand, you can not only simplify and automate your finances but give your business the space it needs to grow.<\/p>\n\n\n\n If you\u2019re not sure which of these services are best for your business, reach out to a Treasury Management Officer. They can help you streamline your cash management systems so they work for your specific needs, no matter how basic or advanced.<\/p>\n\n\n\nFirst, What Are Treasury Services?<\/h2>\n\n\n\n
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Know Your Tools<\/h2>\n\n\n\n
Accounts Receivable (AR): How You Get Paid<\/h3>\n\n\n\n
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Accounts Payable (AP): How You Pay Others<\/h3>\n\n\n\n
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Reconciliation and Fraud Mitigation: How You Protect Your Funds<\/h3>\n\n\n\n
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Keep Business Finances Simple and Automated<\/h2>\n\n\n\n