What is a treasury management plan?
A comprehensive treasury management plan will address each facet of the cash cycle. This would encompass cash disbursements, the collections of cash, fraud prevention and the movement of funds within the bank between accounts and/or loans. A bank’s goal should be to set up a system that runs itself, allowing the company to do what it does to produce profits. Cash disbursements can take the form of checks, ACH transactions and wire transfers. The number of ACH or electronic payments is growing rapidly because it’s safer, cheaper, faster and easier than mailing checks. Today, this can all be easily controlled and managed by the business. Paying vendors in this manner is becoming common, and operating an in-house payroll that offers direct deposit to employees has become quite simple. Forge-proof checks can be purchased, and reconcilement services that monitor incoming checks issued by a company on a daily basis all but eliminate the chance for check fraud. Cash collections are what keep
