The full form of TMS Is the Treasury management system which is a software application that automates the process of making a company’s financial operations.
The treasury management system helps companies and businesses to manage their financial activities such as assets, investments and cash flow, etc. automatically.
The treasury management system is generally used to maintain financial security and to minimize the reputational risk of the company.
The TRM software or system can also be used by a business’s internal management and can be purchased from a technical supplier who builds this software.
There are mainly two types of Treasury management system –
Local
Local TMS software is installed on the home server of the business that enables maximum control of features and security protocols to the company.
Cloud-hosted TMS
The cloud-based treasury management systems are more affordable and more serviceable that can be deployed quickly as they are hosted online.
TMS functions
The treasury management system operates a lot of functions of the company related to its finances such as using data to assess and report payments, cash management, and flow, banking and accounting, etc. here are the prime functions of the treasury management system –
Cash flow forecasting –
The TRM software projects expectations of revenue, operating expenses, and profit which is a prime task in a company. The treasury management system can also predict estimated sales and expenses per annum this related to influencing a company’s direction.
Real-time cash management
The cash management task of the business focuses to increase available cash and reducing shortfalls as quickly as possible.
The TRM software here enables a company to remove unrequired expenses and possible financial risks. The treasury management system also provides a range of other cash uses such as cash balances and also can access business accounts at any time. Users of this TRM can check accounts in depth that includes lending, saving balances and transaction histories, etc.
Debt management
The treasury management system is also able to manage debt to minimize the cost of the company.
Technology
The treasury management system software deals with globalization. TMS technology can rely on a spreadsheet or bank system for bank reporting financial evaluation and lending management with a single local function.
Payment reconciliation
The TMS software can do payment reconciliation This TMS software automatically ensures that a business’s financial transactions match with the bank credit card company or some other financial institution for investigation by accounting staff and analysis of discrepancies. . TMS reports discrepancies in account transactions between the external and internal sources. This TMS payment reconciliation software includes the auditing, and local work process approval, standardizing workflow and collating and integration financial documents for review, etc.
Trade finance
The treasury management system can also manage the trade finance of the company which is a driver of economic development.
The software includes the lending features, letters of credit issuing, factoring of export, export credit, and delivery insurance, etc.
This way TMS can help to free up cash and centralize the data. The trade finance software of TMS provides businesses to deal with the processing of import and export documentation remittances and negotiations that are some of the important parts of the operations of the business.
TMS trends
The treasury management systems have seen many trends and changes and are continued to bring new finance management trends in the business world. The TMS software is transferring to the cloud-based system more and improving continuously with the advancement of technology and the internet.
Another way of these cloud-based TMS is SaaS programs that are subscription-based and can be upgraded quickly. This software as a service program is becoming popular. These TMS systems provide more and more data security along with market consolidation.
Some Other Full Forms of TMS
TMS: Transportation Management System
TMS: Training Management System
