Treasury is not what it used to be. What was once primarily a transactional role focused on liquidity and cash management is now transitioning into key strategic role within the c-suite. Treasurers today are in a unique position to influence company-wide decisions, drive growth, and mitigate risks — all through better use of financial data.
This change is being fueled by modern tech solutions that give treasurers the tools they need to go beyond traditional reporting and unlock actionable analytics. By leveraging capabilities like intelligent tagging, automation, and real-time data aggregation, treasury professionals can elevate their role to become indispensable strategic advisors to their organizations.
Let’s take a look at how this shift is happening, with inspiration from Lemonade — a company that is all-in on using treasury tech to maximize its financial potential.
The power of organized data
To be of strategic value, your data needs to be clear and accessible. To be clear and accessible, your data needs to be organized. Raw data is only as useful as the insights it can deliver, so for treasurers, the challenge often lies in how financial data is not just collected, but organized and analyzed across a complex network of accounts and transactions.
This is where tagging comes into play. While it may seem like a simple technical feature, transaction tagging is one of the most important tenets of strategic treasury. Tags enable treasurers to categorize transactions by almost any variable imaginable, such as geography, business unit, or cost center. This level of organization makes it possible to generate reports, conduct scenario planning, and forecast with unprecedented accuracy.
Lemonade — a digital-first insurance company — utilized tagging to gain a deeper understanding of its overall financial position. By organizing data with tags, Lemonade was able to produce detailed cash forecasts, evaluate financial scenarios, and make data-driven decisions that aligned with their mission to disrupt the insurance industry.
“Everything comes back to tags. Trovata’s real-time capabilities means it’s constantly working for me even when I’m not on the platform. That means I simply review and update tags and reports. Instead of spending hours on manual processes, I can now make quick adjustments and ensure everything is accurate, which makes my workflow much more efficient.”
Robert DiTondo – Senior Treasury Manager, Lemonade
How intelligent tagging transforms treasury
Let’s look a little deeper. We’ve touched on some of the broad benefits of implementing a tagging system into your treasury data, but why exactly is tagging such a big deal for treasurers? Here are three practical ways tagging elevates treasury operations:
Streamlined reporting
Picture a treasurer tasked with understanding cash flow trends across a dozen business units in multiple countries. With a robust tagging system, they can instantly filter transactions by geography or business unit to produce tailored reports. This eliminates the need for time-consuming manual data aggregation or building reports from scratch.
“The real game-changer for me has been the reporting capabilities. Unlike other systems that merely pull in bank data, Trovata allows you to create automated, customized reports that save you time and effort. It’s also very user-friendly and provides the flexibility to drill down into the details you need, making insights more accessible.”
Robert DiTondo – Senior Treasury Manager, Lemonade
Enhanced scenario planning
By tagging transactions, treasurers can also model “what-if” scenarios faster and more accurately. For example, consider a company with significant business ties to the Japanese market. With automated tagging, every transaction between the US headquarters and Japanese vendors or clients could be grouped together.
From there, forecasting a scenario where the US dollar falls 10% against the Japanese yen can be done instantly, showing in near real-time the impact of a potential currency fluctuation.
Improved collaboration across teams
Tags provide a shared language for treasury, accounting, and other departments. By aligning on standardized categories, these teams can collaborate more effectively, reducing friction in financial reporting and enabling a more cohesive decision-making process.
It can help each individual departments better track and understand their budgets, and make choices that help improve their performance.
From custodian to strategist
Treasurers who embrace these capabilities are shifting their role within the organization. It’s a shift from a role tied mainly to managing day-to-day cash flows, to becoming key contributors to long-term strategy. With access to better data and tools, treasurers can:
- Support the CFO with real-time insights for capital allocation and growth strategies.
- Help a company to become more agile, providing fast, data-informed responses to change economic or business conditions.
- Collaborate with other departments to ensure financial health aligns with broader business goals.
This elevated role isn’t just good for treasurers — it’s good for the entire organization. As Lemonade’s case study demonstrates, when treasury functions are optimized, the ripple effects can be felt across every aspect of the business.
The ability to instantly generate customized reports enables Lemonade’s treasury team to meet ad-hoc requests, such as isolating marketing spend or creating cash burn analyses, in real-time. Tasks that once required hours of coordination now take just a few clicks, allowing for quicker decision-making.
Elevating treasury with Trovata
Trovata is the global standard for modern multi-bank connectivity and data analysis. By providing treasurers with real-time data banking data, automation, sophisticated forecasting and scenario planning capabilities, and intelligent tagging, Trovata allows treasury teams to go from reactive to proactive.
Here’s how Trovata supports treasury innovation:
Tagging made easy
We’ve covered the benefits of a robust tagging system, and Trovata’s intuitive tagging feature allows treasurers to organize transactions automatically. Tags can be customized to suit the unique needs of your business, whether it’s categorizing by region, department, or project.
Real-time data aggregation
Trovata consolidates data from multiple bank accounts and financial systems into a single source of truth. That’s all of your cash and transaction data, in one place.
The platform operates on an API-first model, with open banking APIs offering the deepest and most timely sets of data. For smaller banks who aren’t yet set up for APIs, Trovata can also aggregate data using traditional legacy file formats.
This eliminates manual processes and ensures that treasury teams always have accurate, up-to-date information at their fingertips, regardless of your banking arrangements.
Dynamic forecasting
Treasurers can build forecasts that account for multiple variables, allowing you to test many different scenarios and make more informed decisions. Whether it’s planning for an acquisition or responding to market volatility, Trovata makes it easy to adapt.
Collaborative tools
Trovata’s user-friendly interface fosters cross-departmental collaboration, enabling treasury to work seamlessly with accounting, finance, and other teams. Individual dashboards can be customized, with specific user-level access meaning each member of your team only sees the data they need to see.
For companies like Lemonade, these features have turned treasury into a strategic asset. By automating processes and enabling deeper insights, Trovata ensures that treasurers have the tools they need to look forward, instead of just backward.
The need for agile and data-driven treasury operations will only continue to rise. By embracing modern tools and techniques like tagging, treasurers can elevate their role and drive meaningful change within their organizations.
“I highly recommend Trovata to other companies because it fundamentally transforms how you manage treasury operations.”
Robert DiTondo – Senior Treasury Manager, Lemonade
If you’re ready to transform your treasury operations and unlock new strategic potential, book a demo today.
