When you own a small business, every nickel counts. But, short of scrounging for loose change in your couch cushions, how do you come up with more cash every month?

One answer would be to increase sales. Another? Slash expenses as much as possible. As you know, both are easier said than done.

But here’s a third option you might not have considered: treasury management.

Yes, we know. At first glance, it doesn’t sound all that exciting. But after a few months of improved cash flow, treasury management could suddenly become one of your most favorite topics. Larger profits tend to have that effect.

Now that we’ve piqued your interest, let’s ask Dave Shorten, PNC Bank’s head of Small Business Treasury Management, why it matters so much to the health of your business.

“Treasury management focuses on improving processes for accounts receivables, accounts payable, and fraud mitigation. With the solutions and tools to streamline back-office tasks, our clients save time—and even better—save money.”

Time and money. Two things you’d love to have more of, right? If so, read onward.

What Difference Can It Make?

When you started the business, money management was simple. You brought in income and then paid any business expenses from that. However, your finances have become more complex with time—while systems might not have kept up with your growth.

Enter treasury management. It’s more than a set of products or services. Instead, it can prove an organic approach to manage how the money flows through your company. And it all begins with a conversation.

“First, we talk to a business about processes,” Shorten offers. “As one example, many small business owners are stuck in the ‘snail mail’ era, sending checks by mail and sending invoices by mail, which leads to not getting paid quickly. What’s more, the old-fashioned way of doing things means that businesses can leave themselves open to fraud.”

The world of payments is changing rapidly with 73% of all companies moving toward electronic payment methods. And the median volume of ACH transactions has doubled in the last six years.[1] The  move may also pay dividends in terms of reduced processing costs and improved relationships with suppliers.

What Does Treasury Management Do?

Treasury management works in a variety of ways.

Accelerates Receivables. Who doesn’t want to get paid more quickly? If you’ve ever sweated out the arrival of a check in the mail, treasury management gives you better control over incoming cash by:

  • Streamlining creation of invoices sent by email;
  • Receiving payments online;
  • Supplying multiple ways for clients to pay, including ACH, wire transactions, and even traditional checks; and
  • Making it possible to deposit checks remotely anytime and anywhere, without a trip to the bank.

Increased Oversight of Financial Activity. Once  you’ve made the money, it’s a shame you can’t just keep it all. However, there are all those pesky expenses to manage. While treasury management helps you pay the bills, it also helps you stay on top of cash flow by:

  • Creating processes for payment;
  • Setting up vendors for digital payment;
  • Scheduling payments;
  • Planning and tracking expenses;
  • Managing ACH and wire transfer payments;
  • Controlling employee expenditures with business credit cards; and
  • Much, much more

Simplified Liquidity Management. Don’t let your excess cash loaf around in a business checking account. Instead, treasury management may help you enjoy additional revenue by diverting funds into money market accounts, CDs, and sweep accounts. Even better, you enjoy that added cash without having to do much at all. Once a system is established, it’s as low effort as picking money up off the street.

Tools To Help Mitigate Fraud. You’ve worked hard to earn your money. The last thing you want is for it to vanish at the hands of fraudsters. Yet 63% of businesses report fraud activity via traditional checks in 2023, while nearly half (44%) were unsuccessful in recouping any of the losses.[2]

While moving to digital payment systems is becoming an urgent matter, so is ensuring payment security. Treasury management allows you to protect and monitor accounts and transactions by:

  • Developing online fraud protection measures;
  • Establishing rules for ACH payments to ensure peace of mind; and
  • Masking checking account information to deter hacking;

And those are just some of the ways your business—any business--can transform into an efficient money management machine.

As Shorten puts it, “treasury management has the benefit of increasing efficiency, putting money in your hands faster and longer. At the same time, it mitigates fraud so you can keep the money you earn. That’s why treasury management provides solutions to help you run business more effectively and safely.”

You’re Unique. Your Solution Should Be, Too.

There’s no business like the one you own. Your size, strategy, product mix, clients, and long-term goals demand a custom solution. As Shorten points out, implementing treasury management for your business requires ample time to plan, not to mention the right expertise to make it happen.

“To be honest, to many, talking about treasury management may sound really boring. But to us, it’s a powerful client conversation. Payments technology keeps changing, we continue to get better and better offerings, and we know these solutions are critical to help small business save time, save money, keep their money safe, and grow their business.”

That’s why it’s critical to ensure a tailored solution based on not just how you operate today, but how you want to do business tomorrow. A good treasury management provider can do more than simply listen. Instead, according to Shorten, they can make things really interesting in a hurry.

“It’s fun because each time we meet with a client, we listen, we get to know their business and their challenges. Once we understand the business and their needs, we can offer solutions that match their needs, improve their payments ecosystem, and exceed their expectations.”

Are you ready to get the most out of your business? Are you set to enjoy more income without more effort (Okay, easy question there)? If so, the right treasury management plan can do wonders for your business and your finances.

To learn more, talk to one of PNC Bank’s treasury management professionals. And see how an often-overlooked set of financial solutions can make your business—and your profitability—even better.