Treasury Simplified: 6 Common Questions Answered

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June 15, 2022

Treasury accounts are one of the best ways for businesses to maximize their funds. You can benefit even if you’re not a financial expert or don’t have the resources to dedicate to a treasury management team. 

Not sure if treasury management services are right for you? Here are answers to the six top questions to help you decide.

1. What is treasury management?

Treasury management is an umbrella term for various services that allow businesses to streamline their finances by managing their cash, investments and other financial assets. 

The goal is to optimize a company's liquidity while at the same time mitigating its financial, operational and reputational risk.

Treasury management goes hand-in-hand with a treasury account. Businesses that use a treasury account find it makes their day-to-day accounts payables and receivables, forecasting and bookkeeping tasks much easier.

2. Do you need a treasury account if you already have a bank account?

Treasury accounts serve a different purpose than a business bank account. You can have both — treasury accounts work with business checking and savings accounts to create a well-rounded treasury management system.

But do you need one? It depends. Your company can probably function without it, but you’d be missing out on one of the easiest opportunities to transform business cash into revenue. For example, a Treasure account can earn up to 100x** higher yield than a typical business bank account while maintaining liquidity of funds.

3. How does treasury management help businesses?

Treasury management services are all about optimizing a company's finances. The many benefits to a business and its stakeholders include the ability to:

  • Streamline business processes.
  • Keep a company's money working for it as efficiently as possible. 
  • Maximize a company’s liquidity to meet short-term planning needs.
  • Manage cash, investments and other financial assets to help with long-term goals. 
  • Simplify cash management and forecasting solutions to eliminate uncertainty.

It's all about making the most of your money — a core component of your business's success — while improving decision making and minimizing costs.

4. Are treasury account funds protected or insured?

When figuring out what to do with your business’ idle cash, you must first ensure the funds are protected or insured. When you open an account with Treasure, you can rest assured your money is protected. Treasure itself is regulated by the SEC and SOC2 compliant. 

The funds you deposit into Treasure accounts are safe, too. Treasure Cash allocations are FDIC insured, while Treasure High Yield is protected with $500,000 SIPC coverage.

5. Is it hard to set up a treasury account?

Setting up a treasury account can seem complicated and daunting, especially if you're not a finance expert. However, it's actually one of the easiest things to do. First, decide if Treasure Cash or Treasure High Yield is right for you:

  • Treasure Cash is a no-market-risk cash allocation.
  • Treasure High Yield is invested in low-risk fixed-income mutual funds.

You’ll provide basic information about your company, such as your business name, phone number, email and other details to set up your account. From there, it only takes about two business days to finalize everything and get you up and running.

6. How much does it cost to set up treasury management services?

The cost of setting up treasury management services depends on the type of service and the service provider. Many business banks and financial institutions offer treasury management services where you’ll end up paying many different fees.

The cost is a significant factor that sets Treasure apart: You can maximize your idle cash to earn 15x* more than you can at your bank and access your funds on your terms — net of any fees.

Treasure makes it also easy to create an account and connect all your bank accounts to see your balances in one place. Your account dashboard also shows your cash flow trends, idle cash and the life expectancy of your business enabling you to seamlessly optimize your finances in real-time.

Let Treasure help you simplify financial operations and strengthen the bottom line. Open an account today!

*Based on average bank account rates as of 3/31/2022. Source: Bankrate.

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