Treasury management system

A TMS can use data to analyze and report payments, cash management and flow, banking and accounting.[5] Its functions are:

• Real-time cash management: Cash management[6][7] aims to increase available cash and reduce shortfalls as quickly as possible.[6][7][8] It enables companies to eliminate unnecessary expenses and possible financial risk.[8] A TMS provides a range of uses for cash balances,[8] and can access business accounts at any time.[6] Users can view accounts in detail,[9] including savings and lending balances and transaction histories.[9]
• Cash-flow forecasting: This projects expectations of revenue, operating expenses and profit,[10] and is a primary business task.[10][11] A TMS can predict estimated annual sales and expenses (including time frames),[11][10] influencing a company's direction.[11] 
• Payment reconciliation: A TMS' payment-reconciliation software reports discrepancies in account transactions between internal and external sources.[12][13][14] Reconciliation automatically ensures that a business's financial transactions match those of a bank, credit-card company or other financial institution[14][12] for investigation by accounting staff and analysis of discrepancies.[13] The software includes auditing and local work-process approval, standardizing workflow and collating and integrating financial documents for review.[13][14]   
• Debt management: Debt may help a business achieve its objectives,[15] and a TMS can manage debt to minimize its cost.[15] 
• Trade finance: A TMS can manage trade finance, a driver of economic development.[16] It includes lending facilities, issuing letters of credit, export factoring (assets against invoices or accounts receivable), and export credit and delivery insurance.[16][6] A TMS reduces the amount of paperwork involved in trade finance,[17] and can help free up cash (via factoring) and centralize data.[17] Trade-finance software offers businesses automated processing of import and export documentation, remittances and negotiation.[17]
• Technology: TMS software has become more sophisticated[3] to deal with globalization.[18] With a single local function, TMS technology might rely on a spreadsheet or bank system for bank reporting, financial evaluation and lending management.[18]

There are two types of the TMS: local[5][1] and cloud-hosted (or cloud-based) systems.[5][1] Local systems are installed on a business's home server, and enable maximum control of features and security protocols.[1][5] Cloud-hosted systems are more economical, more serviceable and can be deployed more quickly.[1][5]

TMSs are transferring to, and improving, the cloud-based system.[18] Software as a service (SaaS, a subscription system) can upgrade more quickly[19] and is becoming more popular.[18] The most important part of a cloud-based system is data protection,[18][19] and improved data encryption or databases in a country with tight data security laws is a TMS trend; market consolidation is also a trend, enhancing functionality.[18] An increasing number of companies have adopted cloud-based systems, which are evolving in features and security.[19]

• Treasury management