What is a treasury management system: Benefits, functions & solutions

Your company’s cash isn’t just sitting in a vault—it’s moving, fluctuating, and at risk of being mismanaged. If you’re not keeping up, you’re falling behind The right treasury management system (TMS) can mean the difference between financial stability and chaos. But with so many options, how do you choose one that actually works?

Let’s start with:

What is treasury management?

Treasury management oversees a company’s liquidity, financial risk, and capital structure. It includes managing cash flow, optimizing working capital, handling debt and investments, mitigating FX and interest rate risks, and ensuring compliance with financial regulations. Or, in other words: Treasury management is how companies handle their money—making sure they have enough cash to pay their bills, avoiding financial risks, and finding ways to make their money work better for them. The goal of treasury management is to improve financial efficiency, reduce costs, and enhance the organization’s ability to navigate financial uncertainty.

What are treasury management systems?

A treasury management system, or a TMS is an integrated software solution designed to centralize and automate core treasury functions, including cash management, forecasting, financial risk management, payments, bank account administration, and regulatory compliance. It connects with banking systems, ERPs, and market data sources to provide real-time visibility and control over liquidity and risk exposure.

Put simply: a treasury management system (TMS) is a digital tool that helps businesses track their money, manage payments, and reduce financial risks. Instead of using spreadsheets or multiple disconnected systems, a TMS brings everything into one place, making it easier to see cash balances, move money efficiently, and stay ahead of financial risks.

Key features of treasury management systems

A strong TMS includes the following core features:

• Cash & liquidity management: Treasury management systems track all cash positions in real-time across multiple accounts, banks, and currencies. These systems provide integrated tools to optimize working capital, manage cash pools, and prevent cash shortages.
• Payments & bank connectivity: A TMS centralizes and automates payments to suppliers, employees, and partners. Moder treasury management software integrates with multiple banks and payment networks to ensure secure transactions.
• Cash flow forecasting: Treasury management systems use historical and real-time data to predict future cash needs. The solutions identify potential shortfalls or surpluses, allowing businesses to plan borrowing or investments proactively.
• Risk management (FX, Interest Rate, Credit Risk): A TMS monitors financial exposures and automates hedging strategies. IN addition, treasury management systems provide real-time tracking of currency fluctuations, interest rate changes, and counterparty credit risks.
• Investment & debt management: A TMS tracks corporate investments, loans, and credit facilities and helps optimize interest payments and debt repayments to reduce costs.
• Bank account administration: Treasury management systems maintain a centralized database of all bank accounts, signatories, and banking fees. They also ensure secure account management and compliance with internal policies.
• Compliance & reporting: A TMS automates regulatory reporting requirements and maintains a full audit trail, while ensuring treasury activities align with financial laws and industry best practices.
• In-house banking & intercompany netting: Treasury management systems support internal cash pooling, reducing the need for external bank transactions. Treasury management solutions also help multinational companies net internal payables and receivables to minimize FX exposure.
• Treasury accounting & ERP integration: A treasury management system can automate journal entries, reconciliations, and financial reporting, as well as integrate with ERP systems to provide a seamless flow of financial data.

The benefits of treasury management systems

Treasury management systems provide significant advantages to companies managing complex financial operations. Here’s what a TMS can do:

• Real-time cash visibility & control: A TMS consolidates data from multiple bank accounts, currencies, and subsidiaries, providing a clear, real-time view of available cash. This helps companies avoid overdrafts, optimize cash flow, and make informed financial decisions, and to respond quickly to market volatility, interest rate changes, and liquidity challenges.
• Faster, more secure payments: Automating payments through a TMS reduces manual errors, speeds up transactions, and strengthens fraud prevention with approval workflows and security controls.
• Better cash flow forecasting: A TMS improves forecasting accuracy by aggregating historical data, real-time cash positions, and external factors like market trends. This allows businesses to anticipate cash needs, reduce reliance on costly short-term borrowing, and plan for investments. A TMS provides scenario modeling tools to prepare for financial disruptions and optimize cash deployment
• Reduced financial risks: A TMS helps companies identify and mitigate currency risk, interest rate exposure, and liquidity risks. It supports hedging strategies and automates compliance with financial regulations.
• Lower costs & higher efficiency: Automating treasury functions reduces reliance on spreadsheets and manual work, cutting administrative costs, avoiding duplicate efforts, and optimizing bank fees.
• Centralized bank Relationship & fee management: A TMS provides visibility into all bank accounts, signatories, and transaction fees. It enables better negotiation of banking terms and reduction of unnecessary banking costs.
• Stronger compliance & audit readiness: A TMS ensures adherence to financial regulations by tracking transactions, maintaining audit trails, and automating regulatory reporting, reducing the risk of non-compliance penalties.
• Enhanced fraud detection & cybersecurity: A centralized treasury management software makes it possible to implement multi-layered security, including user access controls and anomaly detection. This helps protect against payment fraud, cyber threats, and unauthorized financial transactions.
• Optimized debt & investment management: Treasury management systems track loans, credit facilities, and investment portfolios to ensure optimal capital allocation. Software can help reduce interest costs by proactively managing debt repayments and refinancing opportunities.
• Integration with banks & ERPs: By linking directly with banking partners and enterprise systems, a TMS eliminates data silos and ensures accurate, up-to-date financial reporting across the company. Treasury management systems can automate journal entries, reconciliations, and accounting processes and ensure accurate and consistent financial reporting across enterprise systems.

Treasury management system: Use cases

Treasury management systems have many benefits. The benefits you will experience depend on the TMS vendor and whether you select a full treasury management suite or only several functionalities. But commonly, these are some of the benefits companies encounter after having implemented a full TMS:

Best treasury management systems

• Nomentia: Nomentia is a modular, cloud-based TMS designed for mid-sized and large enterprises. It specializes in cash and liquidity management, payments, bank connectivity, and fraud prevention.
• Kyriba: Kyriba is a global cloud-based TMS focused on cash management, liquidity planning, risk management, and payments automation. It is widely used by global enterprises.
• TIS: TIS is a specialized cloud-based treasury and payments solution focused on global bank connectivity, payment automation, and compliance.
• Gtreasury: GTreasury is a comprehensive TMS with strong capabilities in cash, risk, payments, and accounting. It caters to businesses looking for an all-in-one treasury solution.
• SAP: SAP Treasury is a fully integrated TMS within SAP ERP, offering advanced treasury functions, risk management, and financial analytics.
• ION Group: ION Group offers enterprise-grade treasury solutions with a focus on automation, analytics, and risk management for complex treasury operations.
• Serrala: Serrala is a finance and treasury automation platform offering solutions for cash management, payments, and risk control.
• Treasury Systems: Treasury Systems is a Nordic-focused TMS providing cash, risk, and payments management for mid-sized and large businesses.

Top treasury management systems & software: Key features, strengths, considerations, best for

Nomentia

Nomentia is a flexible and modular cloud-based Treasury Management System designed for mid-sized and large enterprises looking for centralized cash management and payment automation. Unlike some all-in-one TMS solutions, Nomentia offers modular functionality, allowing companies to select and implement only the features they need. The system focuses on bank connectivity, liquidity forecasting, cash flow visibility, and fraud prevention. With strong integration capabilities, Nomentia easily connects to multiple ERP systems, banks, and financial platforms.

Kyriba

Kyriba is one of the most comprehensive cloud-based TMS platforms, offering a broad set of treasury, risk, and liquidity management solutions for large multinational corporations. The system is known for its strong forecasting features, real-time cash visibility, and integrated risk management tools. Kyriba also provides robust payments processing, fraud prevention, and regulatory compliance features, making it ideal for businesses needing deep automation and global treasury centralization.

TIS

TIS (Treasury Intelligence Solutions) is a specialized cloud-based treasury and payments solution focusing on bank connectivity, centralized payment processing, and compliance monitoring. Unlike full-scale TMS platforms, TIS is designed to enhance payment workflows, fraud detection, and cash visibility without replacing core financial systems like ERPs. This makes it a strong choice for businesses with high payment volumes across multiple banks that need better automation and security.

GTreasury

GTreasury is an all-in-one TMS providing strong cash management, risk mitigation, and financial automation. It is widely used by mid-sized and large enterprises that need better cash visibility, centralized payments, and FX risk management. GTreasury combines automated cash positioning, forecasting, and hedge accounting, making it a versatile choice for companies looking to reduce manual treasury work.

SAP

SAP Treasury is a fully integrated TMS within the SAP ERP ecosystem, designed for large enterprises that require advanced treasury, risk, and liquidity management. It is best for companies already using SAP ERP, as it seamlessly connects with financial modules and provides real-time cash, risk, and payments tracking.

ION Group

ION Group provides enterprise-level TMS solutions tailored for complex financial operations. It is widely used by large multinational corporations, financial institutions, and trading firms for automated treasury workflows, risk hedging, and advanced trading analytics.

Serrala

Serrala offers a modular, cloud-based treasury and financial automation platform, focusing on payments, cash visibility, and risk management. It’s widely used by mid-sized and large enterprises that want to automate global payments, gain real-time cash insights, and ensure regulatory compliance. Serrala integrates well with SAP and other ERPs, making it a strong choice for companies looking for embedded treasury automation.

Treasury Systems

Treasury Systems is a Nordic-based TMS designed for mid-market and large corporations looking for a user-friendly, cloud-based treasury platform. It covers the core treasury functions, including cash management, FX risk, payments, and liquidity forecasting, with a focus on automation and streamlined workflows.

How to choose the right treasury management system?

Choosing the right Treasury Management System (TMS) is a high-stakes decision that impacts cash visibility, risk management, automation, and financial efficiency. The wrong choice can lead to expensive implementations that don’t solve the real problems treasury teams face. Here’s how to evaluate and compare TMS solutions with real-world treasury challenges in mind.

Before even looking at TMS vendors, define the challenges your treasury team struggles with daily.

Ask yourself:

• Do we lack real-time cash visibility across accounts, entities, and currencies?
• Are we spending too much time on manual processes (reconciliation, payment approvals, forecasting)?
• Are we exposed to FX risks but lack the tools to monitor and hedge effectively?
• Is our cash forecasting inaccurate, leading to unnecessary borrowing?
• Do we struggle with fraud prevention due to fragmented payment processes?

Define key treasury management system requirements based on challenges

Comparing treasury management solutions

Not all TMS solutions are built the same. Some are general ERP treasury modules, while others are specialized TMS platforms. Some companies even rely on homegrown tools or spreadsheets—which often leads to hidden risks and inefficiencies.

A dedicated TMS is typically the best fit for companies with multi-entity, multi-currency, and high transaction volume treasury operations.

Evaluate integration & scalability

A good TMS should seamlessly integrate with your existing systems.

• Does it connect with all your banks and financial institutions? (Multi-bank connectivity)
• Can it integrate with your ERP? (SAP, Oracle, Microsoft Dynamics, etc.)
• Can it scale as your business grows? (Adding new entities, currencies, or regulatory requirements)

Consider implementation & training effort

Implementation can make or break a TMS project. Ask vendors:

• How long does implementation take? (Weeks or months?)
  
• What level of training and support is provided? (Dedicated account managers, self-service?)
  
• Should we roll out in stages? (Start with cash visibility, then expand to forecasting and risk management)

A phased approach is often best for large organizations with complex treasury needs.

Choose a system that solves real treasury problems

Treasury teams today are under immense pressure to handle cash efficiently, mitigate risks, and automate processes—all while global financial uncertainty increases. Choosing the right TMS isn’t about features alone; it’s about fixing the pain points that hold your treasury team back.

• Focus on real challenges.
  
• Match features to those challenges.
  
• Prioritize integration, automation, and scalability.
  

A well-chosen TMS doesn’t just make treasury operations easier—it makes the entire company financially stronger.

Treasury management systems: Cost considerations

The cost of a Treasury Management System (depends on several factors, including the deployment model, functional scope, scalability, and integration complexity. Businesses typically take one of two approaches:

• Phased approach: Starting small and scaling gradually.
  • Best suited for: Mid-market companies with budget constraints or evolving treasury needs.
    • Lower initial costs: Companies can implement essential modules such as cash visibility and bank connectivity and expand functionality over time.
    • SaaS subscription model: Pricing is typically based on usage, including the number of users, transactions, and bank connections.
    • Reduced implementation complexity: A faster deployment minimizes disruption and allows treasury teams to adapt.
    • Scalability considerations: Expanding the system later may require additional integration efforts, potentially increasing costs.
• Full TMS implementation: Comprehensive deployment from the start
  • Best suited for: Companies requiring a fully integrated treasury solution from day one.
    • Higher upfront costs: The full deployment includes cash management, risk mitigation, payments automation, and regulatory compliance modules. 
    • Longer implementation timeline: Complex integration with ERP systems, banks, and internal processes requires significant planning.
    • Higher ROI potential: Immediate efficiency gains, automation, and risk reduction contribute to long-term cost savings.
    • Customization and IT requirements: On-premise or hybrid solutions may require dedicated IT support and ongoing maintenance.

Additional cost considerations

• Number of users and transactions: Pricing models are often based on the number of users, transaction volumes, or entity connections.
• Integration complexity: Connecting the TMS with multiple banks, ERP systems, or regulatory reporting tools can increase costs.
• Customization needs: Standard SaaS solutions are typically more cost-effective than highly customized on-premise implementations.
• Regulatory and security compliance: Additional costs may arise from fraud prevention measures, audit trails, and data security requirements.

A phased approach provides a cost-effective, flexible path for treasury teams to adopt technology at a manageable pace, while a full TMS implementation is a strategic investment for organizations seeking immediate automation and comprehensive functionality. The decision should align with the company’s budget, treasury complexity, and long-term operational strategy.

Conclusion: is a treasury management system for you?

A treasury management system should do more than just process transactions—it should give you the clarity and control to make smarter financial moves. If your current setup is reactive, slow, or riddled with inefficiencies, you’re leaving money and opportunities on the table. So, what’s it going to be—manual headaches or financial control?