How Small Businesses Can Benefit from Outsourcing Treasury Functions

July 18, 2022

Small business owners constantly have to balance the needs of maintaining stable operations while also actively growing their business. When should you push hard for growth? When do you need to pull back and make sure the company is stable?

Because owners have to think through so many high-level decisions on a regular basis, it’s easy to overlook basic business functions. But, you don’t want to lose sight of critical areas such as cash flow, payroll, accounts receivable and accounts payable, risk management, and more.

That’s why so many small business owners are thinking about outsourcing treasury functions to help businesses better streamline and automate certain tasks. After all, you only have so much available time in the day. Why not work with a qualified bank such as Texas Gulf Bank to provide you with Treasury Management Services?

Let’s take a closer look at the benefits of running your business through treasury management.

3 Important Reasons to Outsource Treasury Functions

Treasury services can help facilitate and automate certain financial management tasks, potentially reducing the necessary number of staff to support the business. However, it does not replace the need for either the business owner or a business manager to manage financial-related activities. The key is that treasury services augment your existing processes and make it easier to run the business.

We have proudly helped many companies along the Texas Gulf Coast take advantage of the opportunity to outsource or automate specific business and financial management functions to our bank. If you’re on the fence about outsourcing treasury services, then consider the following ways that your business can benefit from taking this course of action to help reduce operating costs, minimize processes, and mitigate risk.

1. Keep Costs Under Control

As your small business grows, there will be even more financial responsibility on your shoulders. You have to ask bigger questions about how to manage income, expenses, cash flow, your overall accounting function, and more.

The question is: would it be more beneficial to hire someone to handle financial-related activities or outsource parts of this function to a third party? We believe the best option is to outsource treasury management to a bank so that you can keep costs under control.

Avoid adding another salary and benefits to your payroll.
Work with a bank as needed (versus trying to find tasks for a new employee during slow parts of the year).
Utilize our built-in expertise with treasury management (versus spending more of your time training the new employee).
Prevent costly turnover if this employee leaves the company and you need to hire someone else.

There are many costs associated with trying to hire an employee to fill this role. You can simplify the process by working with experts that will provide you with valuable flexibility to support your business functions according to your needs.

2. Maintain Positive Cash Flow

Every small business owner needs to understand their cash position.

How much do you have in Accounts Receivable (A/R) waiting to be collected?
How much do you have in Accounts Payable (A/P) that you owe?
How much cash do you have on hand to support operations?
When do you expect to receive payment for goods/services?
When do you need to make payments on debts?

Whether you need to move cash from one account to another to make a payroll deadline or you’re waiting for a check from a client, it’s important to have visibility into cash inflows and outflows. Outsourcing treasury management will help you stay organized and maintain positive cash flow so that you can make informed decisions.

3. Reduce Your Risk

Risks are everywhere for small business owners. Owners need a plan to mitigate risks that could impair their ability to continue operating the company.

We get it, though. It’s difficult to find the time to identify risk areas and then implement solutions. That’s why outsourcing treasury services to a bank can help you remain proactive.

Receive automated alerts when there is suspicious activity in your business accounts.
Use a fraud detection service to identify potentially fraudulent checks.
Support your business’ transition from high-risk paper records to secure digital records.
Utilize Information Reporting to keep track of account balances in real-time.

We offer dedicated Risk Management services that keep small business owners ahead of the game. We will provide you with peace of mind about the security of your business so that you can focus on more important matters.

Bonus Benefit: Go Mobile!

In today’s fast-paced business environment, you need to be able to monitor and manage your business wherever the day takes you. We offer Online and Mobile Business banking solutions that allow you to deposit checks from your phone, move cash around while out visiting a customer, respond to security alerts without needing to be in front of a computer, and perform other time-sensitive actions.

At Texas Gulf Bank, our Treasury Management Services can be utilized and accessed from anywhere via a computer or web-enabled mobile phone.

Let’s Get Started on Treasury Management

Whether you decide to start with our Cash Management and Risk Management Services, or you choose to immediately leverage our full suite of Treasury Management Services to streamline your operations, we are ready and available to help your business at any point in your business’ life cycle.

We will consult with you to find the right services that meet your business needs.
We will help you get set up with minimal effort.
We will provide you with training on how to use the products and services you select.
We will support your business with ongoing assistance.

Our dedicated Treasury Management department will develop a right-sized solution that fits your current stage of growth. Then, our team will stay involved in your business throughout the duration of your relationship with our bank. Consider our available services:

A/R Solutions
A/P Solutions
Information Management & Reporting
Cash & Liquidity Management
Risk Management
Online Banking

We aim to build long-term relationships with our small business customers. Our proven approach enables us to adapt our services to support your latest needs. Whether you are trying to rapidly grow or just need to steady the ship for a while, we’ll be with you.

We invite you to get in touch with us today to discuss outsourcing treasury functions to our bank, as well as pricing for these fee-based services. Utilize our contact form below to get started. We look forward to hearing from you!