This is a question we often hear when talking to corporate finance managers. Naturally, there is no single formula that works for everyone—no magic line that clearly defines when such an investment pays off.Another common question is whether the return is realized more on the revenue side or on the cost side. Our experience-based answer to this can be found in the article.

As with any major investment, the decision should be supported by ROI (Return on Investment) calculations. A typical analysis horizon is 3–5 years, within which all factors that may generate costs, savings, or revenue growth can be quantified.

Cost side factors: Implementation costs and ongoing system maintenance fees are balanced against the savings generated by automation: fewer human resources needed, reduced error rates, and lower financial losses due to mistakes.

Revenue and performance factors: The system enables a more accurate, real-time risk profile, contributing to reduced liquidity risks, more reliable cash flow forecasting, lower FX risks, and more efficient cash management. Quantifiable benefits include:

• Liquidity management: more accurate forecasts allow timely investment of free funds.
• Avoiding interest losses: analysis of past data shows the cost of idle balances.
• FX exposure management: real-time monitoring shortens the gap between underlying and hedging transactions, avoiding weeks of FX risk.
• Natural hedges: precise position knowledge enables broader use, reducing bank transaction volumes.

Why it matters Our experience shows that reduced risk has a greater impact on ROI than cost savings alone. For example, hedging a €1 million order just 0.05 HUF off the expected FX rate can already result in a €15,000 (approx. 5 million HUF) loss.

Summary There is no exact, universal answer to the question in the title. The decision always depends on the company’s financial situation, risk profile, and strategy. However, experience clearly shows that high revenues, significant export share, large and long-term loan portfolios, high investment levels, and long product cycles all strongly justify implementing a treasury management system.