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  • Writer's picturePeter Quarre

Understanding Bank Statements in Treasury Management

Updated: May 27


the essence of finance professionals analyzing bank statement information on computer screens in a professional office environment. This visual embodies the integration of technology and expertise necessary for effective financial operations within a Treasury Management System.
Analyzing bank statement information is important for daily operations

Introduction to Bank Statements in TMS

A Treasury Management System (TMS) serves as a central hub for receiving bank statements directly from financial institutions. This essential process forms the backbone of efficient treasury operations, ensuring up-to-date financial oversight.


Efficient Communication Channels

The method of receiving bank statements varies in efficiency:


Manual Downloads

This method involves downloading statements from internet banking portals, offering low efficiency due to its manual nature.


Host-to-Host Connections

A more streamlined approach, providing medium efficiency through direct system links.


SWIFT Network

The pinnacle of efficiency, utilizing the global SWIFT network for seamless statement transfers.


Automating Statement Retrieval

Automating the process of downloading and importing bank statements into the TMS significantly saves time, especially given its repetitive daily nature. By automating, statements can be retrieved hourly, spreading out system load and efficiently managing the high volume of statements some companies face.


Ensuring Complete Data Integration

TMS capabilities extend to verifying the completeness and accuracy of imported statements, comparing transaction values against balance changes. This validation step is crucial in maintaining the integrity of financial data.



dashboard that shows the bank accounts and if the bank statements have been imported. It shows also the total debit and credit transactions
Sample of a report in a TMS on the statement import


Comprehensive Data Storage

Once imported, the TMS securely stores detailed transaction and balance information indefinitely. This robust storage capability means businesses are no longer limited by the bank’s history display constraints, with access to a comprehensive financial history.


Leveraging Bank Statement Data

The TMS empowers businesses to fully utilize bank statement data for reconciliation and analysis, especially with XML CAMT messages offering rich informational fields. Our expertise helps clients unlock the full potential of this information.


Simplifying Transaction Searches

With bank statement data readily available in the TMS, searching for specific transactions becomes effortless. This functionality is invaluable for resolving queries regarding payments or receipts and facilitating auditor requests.


Reducing Manual Effort and Fraud Risk

By centralizing bank statements in the TMS, the need for manual internet banking operations is greatly reduced, thereby saving time and minimizing the risk of fraud. This centralization also simplifies security management and enhances fraud prevention, with some clients even moving away from traditional internet banking altogether.


Facilitating Statement Redistribution

When necessary, bank statements can be shared with other systems, such as ERP solutions, or converted into PDFs for archival and auditing purposes. It’s important to recognize that TMS offerings vary; our expertise guides you in selecting a system that best fits your needs, maximizing the value and efficiency of your treasury operations.


Speak now to our consultants how we can help you!



 




About the Author:

The author of this blog, Peter Quarré RT, is co-founder and principal consultant at CashMeasury, a boutique firm specializing in Advanced Treasury Technology Consulting based in the Netherlands. With a solid background as a certified Treasurer, Peter brings a wealth of expertise in multiple treasury management systems.

Peter's career is distinguished by a deep understanding of treasury operations, enabling the delivery of tailored solutions that optimize financial processes and system functionalities often underutilized by clients.

At CashMeasury, Peter focuses on implementing robust treasury management systems and enhancing client experience through advanced technical skills in TMS, SQL, PowerBI, Crystal Reports, and AI. Peter's approach is always client-centric, aiming to provide immediate and effective solutions to the complex challenges faced in treasury operations. Through this blog, Peter shares insights and expertise that help organizations navigate the intricate world of treasury management and leverage technology for strategic advantage.

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