In an earlier article we explored the journey which governments go on when they begin to use digital tools for public financial management, and discussed the different stages of an organization’s digital evolution through digitization, digitalization, and digital transformation.
In this article we consider the opportunities for improvement when using digital tools for government treasury management, and the specific benefits of using FreeBalance’s (GTM) Government Treasury Management modules.
Why use digital tools for Government Treasury Management?
Government Treasury Management encompasses a range of key government treasury functions including:
- payment and bank reconciliation
- cash and liquidity management
- debt, grant, and aid management
- financial investments and sovereign wealth funds
- a treasury single account.
Managing public finances is not the same as managing general enterprise budgets: governments have unique needs. FreeBalance recognized this almost 40 years ago and developed the FreeBalance Accountability SuiteTM to address government requirements.
(GTM) Government Treasury Management is a suite of tools within the FreeBalance Accountability SuiteTM which enable governments to more effectively manage their treasury functions by using digital technology.
Digital solutions, such as (GTM) Government Treasury Management, play a key role in helping governments to manage treasury functions, and can help government organizations to improve:
- efficiency
- effectiveness
- economy
- equity
- economic value.
Governments can realize improvements regardless of whether they are implementing digital tools for the first time for GTM or whether they are evolving their current practices.
Digitizing Government Treasury Management with FreeBalance
For governments taking their initial digital steps, digitization offers a wide range of benefits. By converting manual treasury management processes into digital formats, human errors are reduced, access to information improved and transparency in financial operations enhanced.
The FreeBalance (GTM) Government Treasury Management tools support public sector leaders with digitization by:
- automating bank reconciliation
- enabling debt or investment analysis
- generating cash requirements reports
- collecting managerial liquidity estimates
- tracking foreign aid.
Releasing Efficiency through Digitalization of GTM
Digitalization extends beyond simply replicating manual processes in a digital format, and instead automates entire processes. Organizations with existing digital records can build greater efficiency, transparency and decision-making capability by digitalizing their treasury management processes.
Among the digitalization functions of FreeBalance’s (GTM) Government Treasury Management solutions are:
- integrating payment, receipts, and adjustments
- supporting end-to-end debt, aid, or financial investments workflow.
Digital Transformation of Government Treasury Management
Government digital transformation takes on a wider scope than digitization and digitalization, requiring significant organizational change but delivering huge benefits.
Our (GTM) Government Treasury Management tools support digital transformation by:
- integrating debt, investment, and foreign aid planning with budget planning
- leveraging collaboration technologies, big data analytics, data science, and artificial intelligence for liquidity management
- supporting agile adjustment of commitment controls based on liquidity analysis
- automating aid, debt, and financial investment transparency.
Digital transformation puts technology at the heart of treasury management processes, and (GTM) Government Treasury Management (like other solutions within the FreeBalance Accountability SuiteTM) can be configured to meet the needs of different governments. Examples of this include configuring workflows, setting up user permissions, and defining budget categories, without the need for ongoing technical expertise. (Read our previous blog article for more about configuration, and the difference between configuration and customization).
We believe that simply implementing a new piece of technology isn’t delivering transformation, which is why we have a range of supporting services, in addition to our technical solutions, to ensure the success of our customer’s digital transformation programs.
Ready to Take Your Next Steps?
Your organization may be at the beginning of its digital journey, or it might be ready to make transformative changes. Either way, FreeBalance can help. Find out more about the FreeBalance Accountability SuiteTM, FreeBalance’s advisory, implementation and sustainability services, or contact us to set up a meeting with one of our PFM experts.