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Treasury Management Best Practices. Jacob Heugly – SVP Manager Treasury Management. What is Treasury Management?. Treasury Management solutions are proven to help businesses operate as effectively as possible by: Improving Receivables / Collection Processes - PowerPoint PPT Presentation
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Treasury Management Best Practices
Jacob Heugly – SVP Manager Treasury Management
What is Treasury Management?
Treasury Management solutions are proven to help businesses operate as effectively as possible by:
• Improving Receivables / Collection Processes
• Improving Payables / Disbursement Processes
• Accessing Financial Data Online
• Detecting and Preventing Fraud
• Short Term Investments
COLLECTIONSProducts that
streamline and centralize a customer’s
accounts receivable processes.
Remote Deposit An electronic check
clearing application that allows organizations to conveniently make check deposits electronically from the safety and comfort of their office.
Accelerates cash flow by submitting check deposits electronically and securely
How Your Business Benefits Software is easy to use
Faster availability of funds
Reduces expenses
Extended deposit window
Exportable files into accounting programs
Increased management of funds Consolidation of
accounts
Merchant Services
Merchant Services Options
Allows the client to accept credit card payments either
E-Commerce In person
Over the Phone
What to know before you sign!
Pricing Have you done a side by side comparison? Interchange Plus Pricing or Bucket Pricing?
Cancellation Fees Does your provider have a cancellation fee?
Existing Lease Contract for Terminal Can your terminal be reprogrammed?
Understanding of the Merchant Statement Fees are hidden in the statements. Understand the DOWNGRADES
Lease versus Buy Make sure to analyze the best hardware acquisition for
what is best for your business. Are you seasonal? Do you need a wireless machine?
Who do you call when you have issues? Service is the #1 complaint.
What to know before you sign!
E-Commerce Merchant Transactions
Automate Monthly Payments Businesses can set up automatic payments for
customers
Receive payments online Integrate with shopping cart to process transactions Process credit card or ach payments (client’s want
the option)
Virtual Terminal Capability Solution for merchants who manually enter credit card information Eliminate the expensive Terminal cost
Lockbox
Lockbox Options
Image Lockbox Daily imaging of all
checks, invoices, and backup documentation.
Rather than receiving copies of checks and invoices via mail or costly courier, clients have online access to images and reports the day of deposit.
Retail Lockbox Captures data to update
an accounts receivable system using a computer readable scan document (i.e., remittance stub, coupon, or voucher).
A transmission file is composed from remittance information contained in the scan document and check MICR line.
Retail Lockbox Sample Coupon
OCR Line
OCR – Optical Character Recognition
Lockbox Benefits Improved Receivables Float
Mail Float Processing Float Clearing Float
Reduced Staff Processing Time Deposit Preparation Bank Trips Receivables Data Key Entry
Increased Audit Controls Separation of receivables/payables processes Automated data entry for error reduction
DISBURSEMENTSThese tools allow a customer to initiate
payments securely and efficiently.
Automated Clearing House
Direct Deposit of payroll, Social Security and other government benefits, and tax refunds.
Direct Payment of consumer bills such as mortgages, loans, utility bills and insurance premiums.
Business-to-business payments
E-commerce payments
Federal, state and local tax payments
ACH Payments
The ACH Network is an electronic funds transfer system governed by NACHA which provides for the interbank clearing of electronic payments for participating depository financial institutions. The following are examples of common ACH transactions:
Benefits of ACH
Cost effective – typically less expensive to initiate and reconcile than paper checks
Flexible – later cutoff times
Versatile – Business and Consumer transfers
Pre-Funding – If you are a new business or have credit issues you can pre-fund the transaction.
Positive PayCheck and ACH
Fraud Statistics Types of Check Fraud
Altered Payee names on the check issued
Counterfeit checks that had the organizations own MICR line but used another organization’s name
Lost, stolen or counterfeit employee pay checks
Fraudulent checks returned by Positive Pay, then presented as ACH debits
ACH Fraud Organizations are
reporting ACH payment fraud activity on a more regular basis
Organizations that suffered financial losses from ACH say it was because they failed to use ACH Blocking or Filtering service offered by their bank.
Business only have 48 hours to dispute an ACH fraudulent transaction.
Payroll Cards
Great solution for the non bankable employee
Reduces the risk of fraud
Card-based, electronic paycheck
Net pay loaded to account each pay period – immediate access to funds
Visa signature-based to provide increased utility to employee
On-line access to balances, transactions and current card information
INFORMATION REPORTING
Tools to manage and view accounts securely
online, when it is convenient for a
customer.
Treasury Management Online System
Treasury Management Online
Provides access to banking information, payment solutions, and specialized reports available in a concise, one page “dashboard”
Built to fit a business’s needs and is easily customizable via the “dashboard”
Helps businesses effectively: Collect funds from customers Concentrate funds where they can be most efficiently
deployed Disburse funds cost effectively to vendors, employees,
and investors. Allows businesses to conveniently manage user privileges
INVESTMENTSTools used to match
business’s investment guidelines and help capitalize on excess cash to pay down
balances or earn money.
Sweep Account
What is an Investment Sweep Account?
A tool used by customers to automatically invest excess funds in their checking accounts.
Each night the excess funds are swept into an investment account.
If debits are presented to the checking account, in the morning the funds will sweep over from the investment account to cover the debits.
Investment Sweep
Investment Sweep
ZBA Master
Account
ZBA #1 ZBA #2
What is a Cash Manager Sweep?
The cash manager sweep sweeps funds from the investment account to pay down the client’s line of credit.
If the line of credit does not have a balance, the funds remain in the investment account earning interest.
ZBA Master
Account
ZBA #1 ZBA #2
Line of CreditInvestment Sweep
Cash Manager Sweep
What is a Credit Sweep?
A credit sweep is a direct DDA to loan sweep, which means that if there are excess funds in the DDA and the line of credit has a balance, it will sweep over the funds to pay down the line.
Credit Sweep
DDA Line of Credit