Treasury Technology: Tools for Cash Visibility and Control
Treasury management used to require expensive enterprise software. Today, cloud-based tools make sophisticated treasury capabilities accessible to growing businesses. The right technology stack gives you real-time cash visibility, payment automation, and forecasting integration—without the complexity and cost of enterprise systems.
A $20M company shouldn't need to log into five bank portals every morning to know their cash position. They shouldn't manually key payment data into accounting software. They shouldn't build cash forecasts in spreadsheets that don't connect to anything.
Modern treasury technology solves these problems. But with dozens of options from simple bank aggregators to full treasury management systems, choosing the right tools requires understanding what you actually need.
What Treasury Technology Solves
Core Pain Points
- Cash visibility: "What's our cash balance?" shouldn't require logging into multiple portals
- Payment inefficiency: Manual payment entry is slow and error-prone
- Forecasting disconnect: Cash forecasts live in spreadsheets separate from actuals
- Control gaps: Approval workflows live in email or memory
Technology Maturity Stages
Stage 1 - Manual: Log into bank portals, track cash in spreadsheets, process payments manually
Stage 2 - Connected: Bank feeds to accounting software, basic payment automation
Stage 3 - Integrated: Cash visibility platform, automated payments with approvals, forecasting integration
Stage 4 - Optimized: Full TMS with real-time analytics, FX management, risk management
Most growing companies should target Stage 2-3. Stage 4 is for larger enterprises with complex treasury operations.
Bank Connectivity
Everything starts with getting bank data into your systems automatically.
Connection Methods
- Direct bank feeds: Bank provides data feed directly to your software (most reliable)
- Aggregator services: Third party pulls data from multiple banks (Plaid, Yodlee)
- File imports: Download files from bank portals, import to software (manual but universal)
- Bank APIs: Real-time connection via bank's API (best but not universally available)
What You Get
- Balance data: Current, available, and ledger balances
- Transaction data: Credits, debits, details for each transaction
- Historical data: Statement history for reconciliation
Start with Your Accounting Software
QuickBooks, Xero, and other accounting platforms have built-in bank feeds. If you're not using them, start there. It's the foundation for cash visibility and eliminates manual transaction entry. Only add specialized tools when you outgrow what your accounting software provides.
Cash Visibility Platforms
When you have multiple banks or need more sophisticated cash visibility than your accounting software provides.
What They Do
- Multi-bank aggregation: Single dashboard showing all bank accounts
- Real-time balances: Current position across all accounts, updated continuously
- Historical analysis: Cash flow trends, patterns, comparisons
- Forecasting: Project future cash based on history and planned flows
Options by Company Size
- $5M-$15M revenue: Usually accounting software bank feeds are sufficient
- $15M-$50M revenue: Consider dedicated visibility tools if you have multiple banks or complex structure
- $50M+ revenue: Treasury management systems with full visibility capabilities
Popular Tools
- Trovata: Bank aggregation and cash flow analysis for mid-market
- Kyriba: Full treasury management system (larger companies)
- HighRadius: AI-powered treasury and AR automation
- Float: Cash flow forecasting and visibility for smaller companies
Payment Automation
Automate the payment execution process from approval to bank.
Core Capabilities
- Invoice capture: Scan invoices, extract data automatically
- Approval workflows: Route invoices based on amount, vendor, category
- Payment execution: Initiate ACH, wire, check directly from system
- Accounting sync: Push payment data to accounting software automatically
Popular Tools
- Bill.com: Most common for mid-market; full AP automation
- Ramp / Brex: Card-first with bill pay; good for card-heavy spending
- Tipalti: High-volume, international payment automation
- Mercury: Banking with built-in payments for startups
Integration Considerations
- Accounting software: Must integrate cleanly with QuickBooks, Xero, NetSuite
- Banking: Direct bank integration for payment initiation
- ERP: For larger companies, ERP integration may be required
ROI on Payment Automation
Companies typically see 50-70% reduction in payment processing time. For a company processing 200 invoices/month at 15 minutes each, that's 50+ hours saved monthly. Plus reduced errors, better controls, and audit trail.
Forecasting Integration
Connect your cash forecast to actual bank data for continuous accuracy improvement.
How It Works
- Actuals feed: Actual cash flows from bank feed into forecast
- Variance analysis: System compares forecast to actual automatically
- Pattern learning: AI/ML identifies patterns to improve forecast accuracy
- Rolling updates: Forecast extends automatically as time passes
Forecasting Tool Options
- Spreadsheet with bank feed: Pull actual balances into Excel/Google Sheets forecast
- Accounting software forecasting: Some platforms have built-in forecasting
- Dedicated forecasting tools: Float, Cash Flow Frog, Dryrun for specialized forecasting
- FP&A platforms: Planful, Adaptive, Vena with cash forecasting modules
Key Integration Points
- Opening cash: Actual balance becomes forecast starting point
- Known inflows: AR aging, scheduled receipts from accounting
- Known outflows: AP aging, scheduled payments from bill pay
- Recurring items: Payroll, rent, subscriptions imported automatically
Security and Controls
Treasury technology handles sensitive financial data and payment initiation. Security is critical.
Authentication
- Multi-factor authentication: Required for any treasury system
- SSO integration: Single sign-on with identity provider (Okta, Azure AD)
- Role-based access: Users see only what they need
Payment Controls
- Approval workflows: Multi-level approval based on amount thresholds
- Dual authorization: Two approvers required for large payments
- Bank detail changes: Extra verification when vendor bank info changes
- Audit logging: Complete record of who did what, when
Vendor Security Assessment
Before selecting treasury technology, verify:
- SOC 2 compliance: Industry standard for security controls
- Data encryption: At rest and in transit
- Bank connections: Secure, certified bank integrations
- Incident response: Clear process for security incidents
Security Non-Negotiables
Don't compromise on security for any treasury tool. Require MFA, verify SOC 2 compliance, ensure encrypted connections. The convenience of a tool isn't worth the risk if it has security gaps. One breach can cost more than years of software savings.
Building Your Treasury Tech Stack
Foundation Layer
Start here (every company needs):
- Accounting software with bank feeds (QuickBooks, Xero, NetSuite)
- AP automation tool (Bill.com, Ramp, or built-in accounting functionality)
- Spreadsheet-based cash forecasting connected to actuals
Enhanced Layer
Add when you need more ($15M+ or complex operations):
- Multi-bank visibility platform if you have 3+ banking relationships
- Dedicated cash forecasting tool if spreadsheets become unwieldy
- AR automation if collections volume warrants
Enterprise Layer
For larger organizations ($50M+ with complex needs):
- Full treasury management system (TMS)
- FX management and hedging tools
- Risk management and analytics
Don't Over-Buy
The biggest mistake is buying enterprise-grade treasury software for a $15M company. Start with the foundation, add tools as you outgrow them. A well-designed spreadsheet integrated with bank feeds beats an expensive TMS that's too complex for your team to use effectively.
Need Help with Treasury Technology?
Eagle Rock CFO helps growing companies select and implement the right treasury technology: bank connectivity, payment automation, cash visibility, and forecasting tools. Let us help you build a tech stack that fits your needs.
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