Beyond Bank Portals: The Mid-Market Need for TMS

For many growing mid-market companies, managing treasury functions often starts with juggling multiple bank portals and relying heavily on spreadsheets. While functional initially, this approach quickly hits limitations as complexity increases. Market volatility and the need for real-time financial visibility demand more sophisticated tools. Isn’t it time to consider a dedicated Treasury Management System (TMS)? My research indicates that implementing a well-chosen TMS, potentially including established platforms like Kyriba, can provide a significant competitive advantage through enhanced cash control, optimized working capital, and improved risk management.

A dedicated TMS moves beyond basic cash balance reporting, offering integrated capabilities that streamline critical treasury operations. It’s less about just seeing cash and more about actively managing it strategically.

Core TMS Functionality Domains

When evaluating TMS options, understanding the core functional areas is crucial. Leading platforms, including those from providers like Kyriba, generally offer capabilities across these key domains:

  1. Cash Management & Forecasting: This includes real-time visibility into global cash positions, automated bank statement retrieval (often via MT940 or APIs), and tools for building dynamic cash flow forecasts. How accurately can you predict liquidity needs weeks or months out? Advanced systems may offer AI-driven forecasting suggestions.
  2. Payments Processing: A robust TMS centralizes payment initiation, approval workflows, and execution across various banks and payment types (ACH, wire, SEPA). Look for secure integration with payment networks, sanction screening capabilities, and fraud prevention tools. Connectivity options and bank footprint are key differentiators here.
  3. Financial Risk Management: This covers managing exposure to foreign exchange (FX) fluctuations, interest rate changes, and counterparty risk. Features might include exposure tracking, hedge accounting support (ASC 815), and scenario analysis. The depth of derivative instrument support can vary significantly between vendors.
  4. Bank Relationship Management: Centralizing bank account details, fee analysis, FBAR reporting data, and managing signatory authorities simplifies bank administration and enhances control. Some systems offer automated bank fee analysis tools.
  5. Debt & Investment Management: Tracking loan covenants, managing investment portfolios, and automating interest calculations are key features for companies with significant financing or investment activities.

Key Selection Criteria for Mid-Market Fit

Choosing the right TMS involves more than just ticking feature boxes. For mid-market companies, specific criteria are particularly important:

  • Scalability: Can the system grow with your business complexity, transaction volumes, and geographic expansion? Consider module add-ons and user licensing models.
  • Integration Capabilities: How easily does it integrate with your core ERP (like NetSuite or Acumatica) and banking partners? Look for pre-built connectors (vendors like Kyriba often highlight their extensive bank connectivity) and robust API support for custom needs.
  • Reporting & Analytics: Does it offer configurable dashboards and reporting tools that provide actionable insights, not just data dumps? Evaluate the ease of creating custom reports.
  • Security & Compliance: Ensure the vendor meets high security standards (SOC compliance, data encryption) and supports relevant regulatory requirements. Data residency options might also be relevant.
  • User Experience (UX): An intuitive interface reduces training time and encourages user adoption. Don’t underestimate the importance of a clean UX, especially for teams transitioning from spreadsheets.
  • Vendor Support & Roadmap: Consider the vendor’s implementation support model (direct vs. partner-led), ongoing customer service reputation, and future development plans (e.g., investment in AI, API expansion).

Common Pitfalls to Avoid

Analysis of TMS selection processes often reveals common missteps:

  • Feature Overload: Selecting a system with excessive complexity (even feature-rich ones like Kyriba can be overwhelming if not scoped properly) that users won’t fully utilize. Focus on your core needs first.
  • Underestimating Integration: Failing to scope the effort required to connect the TMS with existing systems, particularly legacy ERPs.
  • Ignoring Change Management: Overlooking the need to adapt internal processes (e.g., payment approvals) and train users effectively.
  • Data Migration Gaps: Not planning thoroughly for the migration of historical cash, payment, and transaction data, impacting forecasting accuracy.

A Strategic Enabler

Ultimately, selecting a TMS is a strategic decision, not just an IT project. A well-implemented system, whether from a large player like Kyriba or a niche provider, provides the financial control and visibility needed to navigate uncertainty, optimize working capital, and support sustainable growth. It transforms the treasury function from a reactive operational necessity into a proactive strategic partner for the business.

What are your key considerations when evaluating treasury technology? Let’s discuss further on LinkedIn.