Describe the role of information technology in treasury management.

With the ever increasing pace of change to regulation, compliance and technology in the financial sector, treasury has increasingly become a strategic business partner across all areas of the business, adding value to the operating divisions of the company. The information technology is playing a major role in effective treasury management which is discussed below: Automate repetitive tasks Technology today is being leveraged to automate repetitive tasks such as data gathering, accounting, bank polling, portfolio tracking and reporting. Implement internal controls To ensure compliance with rule and regulations, sound and effective internal controls must be implemented through sound system of Information technology. Time saver and fraud & error detection Methodology This best practice is a great time saver, especially when it's time to close the books. Through the treasury management system, all repetitive transactions are automatically tagged with the correct instructions. Most companies using a treasury management system get 90-95% of their transactions automatically tagged accurately without any manual intervention. Forecast cash flows By this system effective forecast is possible especially cash flow. Communicate with operating units Operating units must be involved while building forecasts to ensure incorporation of all the necessary and up-to-date information. Management gets latest and updated information. Choose a Web-based treasury management system The full benefits of technology without unnecessary costs or delays may be achieved by selecting a web-based treasury management system. Rethink treasury processes Reassessing of the treasury workstation at transparent intervals help to evaluate processes and identify how they can/should be revised to maximise efficiencies. Pay for performance The proper and effective use of information technology in treasury operation increases the efficiency and effectiveness of corporate officers across the treasury, investor relations, corporate finance and corporate communication function.