Published: May 14, 2014
Hubert Rappold puts forward the case for a treasury information platform (TIP), which acts as a lightweight and flexible reporting platform for the treasury department and reduces companies’ reliance on error-prone Excel-based solutions.
A typical treasury department runs a number of systems: a treasury management system for day-to-day operations, a trading platform, a market information system, electronic banking software and so on. So why on earth would you really need a separate treasury information platform? After all, the data already exists in a multitude of other systems. Well, that is certainly true but also part of the problem.
If there is no single place where all the treasury data can come together to create your reports at the press of a button, you will most likely be forced into an inflexible data warehouse solution not suited for treasury purposes which is also used by other departments or into a ‘handmade’ spreadsheet-based solution with all its drawbacks. On top of that, even in an ideal world, when all your data is in a single system, there are circumstances where it is almost certain that you will need to integrate additional data. Just think about acquisitions. It usually takes years before the systems are harmonised.
So what do you do in the meantime?
A TIP needs to fulfil a range of requirements in order to satisfy the needs of treasury departments.
What happens if these requirements are not fulfilled is quite easy to imagine. Your reporting will be cumbersome, error-prone and data quality will be poor. Ultimately, the reporting project will fail and a new generation of interns will develop yet another Excel-based monstrosity doomed to failure.
Let’s look at these requirements in greater detail:
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In figure 1, I outline how such a system could fit into your existing system environment and what the interactions are between these components.
The TIP acts as the information hub between the various systems. It receives and passes on data to and from other systems. Based on this data, all the reports are created without any need for manual consolidation for the report consumers. Based on the needs of these consumers the reports are delivered. The reports range from high-level management reports to very detailed reports for the treasurer. They are accessed using a secured internet connection over the browser or via mobile devices like the iPad and can also get distributed automatically via email.
Usually, a TIP is selected because there is one burning issue that needs to be addressed, for example, a group-wide overview of bank accounts or cash flow forecasting. If you select a TIP for any of these functionalities, always ask yourself what could be the next burning issue. These are usually identified by analysing the existing spreadsheet-based solutions.
Any of these is a good candidate to be replaced by the TIP. With this list in mind, look at system providers and make sure that they cover potential future needs and not only the one that currently causes most of the pain. Also make sure that the system provider has treasury experience. Just think about cash flow forecasting. Most system vendors will tell you that planning is part of their system. However, a closer look will show you that basic functionality is missing; for example, the connection to the financial status as the starting point of the forecast or the display of credit facilities according to their maturity structure. Basic things, if you are treasurer, but a different world for the average system provider.
Also make sure that the system has an intuitive user interface, especially where large amounts of data are captured, for example, for the cash flow forecast. It should be as easy as a spreadsheet-based solution in order to gain the acceptance needed. Interfaces should exist to all relevant standards and systems. Last and definitely not least, a large customer base that happily acts as references is a must. If this does not exist, the chances are high that the system provider will develop the system at your expense.
Look at your current treasury reporting. If you encounter lots of spreadsheet-based solutions, if you see data files transferred via e-mail, if a lot of manual work is needed to create reports and if you find yourself tracking down differences between different reports time and again, you should consider a Treasury Information Platform.
Hubert Rappold is CEO of the TIPCO Treasury & Technology GmbH, a leading software provider for treasury reporting in Germany, Austria and Switzerland. Since 2004 he is substantially involved in the functional and technological development of the Treasury Information Platform TIP. More than 100 corporations worldwide are using TIP to create flexible and comprehensive financial reports.
TIPCO Treasury & Technology GmbH
www.tipco.at
[email protected]
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