As someone who works with fast-growing startups every day, I´ll tell you the number one mistake I see over and over again, founders raising millions, parking it in a checking account, and earning nothing while inflation chips away at it.
If you’re already using Rho to manage banking, spending, and accounting, your finance stack is already ahead of the curve. But here’s the question: is your idle cash working for you?
With treasury automation through Rho, you can start earning returns on idle funds without adding complexity to your workflow. No new software, no manual transfers. Just smarter cash management built into the platform you already use.
In this post, we’re excited to share how we help our clients avoid this trap within the Rho platform, tools that help turn everyday spend and idle cash into active ROI.
Why Treasury Strategy Is a Founder's Advantage
If your business holds at least $50K+ in sitting deposits, treasury isn’t optional, it’s a strategic lever. With 4 percent APY, you’re talking about $2,000 a year that simply for sitting the right account comes to the business passively. If your number is higher, say $250,000 then you’re looking at numbers closer to $10,000.
In short, Treasury helps extend the runway and works as an inflation shield. Historically, Fortune 500 treasury departments are trading complex securities and commodities. That may prove too risky for those not looking to invest the time or money in complex financial products. The good news is that with interest rates where they are, even short-term T-Bills can generate these types of returns. In today’s market where capital needs to last longer, the punchline is simple: do treasury or die.
Many founders simply don’t have time to think about treasury or believe it’s only for large corporations. But if you’re managing millions in venture capital or revenue, you have a fiduciary responsibility to put that capital to work responsibly.
Rho is lowering the barrier. Treasury management no longer requires a Bloomberg terminal or Wall Street background. Just a few clicks and a smart workflow.
What Rho Treasury Does (and Why It’s Built for You)
And it doesn’t need to be complicated. Using the right tools makes treasury management low-risk, automated, and built to support growth-stage companies. And the better news is that Rho has thought about this, offering ways for founders to invest idle cash into Treasury Bills or institutional-grade mutual funds (e.g., MULSX) within the platform.
This is what we’ve found intriguing:
- Funds are held in your company’s name at established custodial partners (e.g., Apex)
- Up to 4.27% net yields*, depending on your deposit size
- Automated reverse sweeps from Treasury to Rho Checking. When cash is needed for payments, Rho moves funds back from Treasury automatically.
- Treasury transactions sync with your accounting software for faster, cleaner month-end closes
- Everything lives inside the Rho platform, no additional subscriptions or out-of-platform click paths required.
It’s low-touch, high-impact.
The reverse sweep feature is especially important, it ensures that cash remains productive until the moment it’s needed for operating expenses. While the forward sweep (from Checking to Treasury) is coming soon, this reverse automation already minimizes friction.
We’ve also seen how helpful this is when companies face fluctuating payroll or vendor obligations. Treasury becomes dynamic, not static.
Adding to the Strategy: Cash Back on Expenses
Rho recently launched one of our favorite expense programs for clients, Rho Platinum. It’s a simple way to get up to 2% on all spend1 (we know because we use it). We’ve found that this program is competitive and has encouraged some clients (not all) to move away from legacy favorite programs for a better UX and overall spend management solution. Combined with treasury management, these combined features (treasury yields and cash back) position Rho as an effective partner in combatting inflation pressure while trying to build a company, which is getting more expensive.
The following example highlights this well. Assume a company with $2mm annual spend and $500K in idle cash. Over a year the company can expect
- 2% on the $2MM annual spend → $40,000
- $500K sitting cash for 6 months at 3.91% → $19,550
And this didn’t take filling out a monthly expense report or doing your accounting differently, it’s built in and automated after setup. So just like that, this business has an additional $60K. That’s 30% of monthly spend!
If you think that’s good, let's stack the strategy with the R&D tax credit. Assuming $1MM in qualified spend, that’s another $60K - $100K in cash back into the business. Now we’ve stacked three strategies. The result? $120K - $160K in non dilutive cash.
Not sure how to stack all these strategies with tax? That’s where advisors like Tax Hack come in. Simple solutions include using a cash reserve that collects yield to pay tax liabilities and leveraging existing tax credits to increase non-dilutive capital from government incentive programs.
The best part? These savings compound without you having to spend time managing them. And that’s the most valuable gift you can give to a founder: time back with some extra cash.
Making Rho work with (and for) you
For startups Founders and CFOs, optimizing cash in only half the equation. The other half is making sure your capital strategy aligns with your overall business strategy. Rho Treasury helps your cash and expenses go farther. But I’d be remiss to not mention the missing variable to elevate your business and that’s an accounting partner. Whether that’s a fractional CFO or a strategic outsourced accountant partner, combining the functionality with an expert team is where we see our clients level up.
Rho gives you real time visibility and automation to move and manage cash intelligently. Tax Hack helps you structure your finances to reduce tax exposure and stay compliant as your company scales.
Whether you’re navigating multi-entity structures, preparing for a raise, or looking for ways to improve your cash position before year-end, we work with Rho to help our founders:
- Set up cash flow strategies that support growth and keep cash in the business by limiting taxes
- Planning for estimated tax payments and upcoming liabilities
- Align treasury moves with business goals
- Tracking meaningful financial KPIs with integrated financial data.
Smart financial infrastructure is about more than banking. It’s about control, clarity, and coordination and that’s what Rho and an accounting and tax advisor partner. Together, we provide a unified financial stack that simplifies two of your biggest levers: cash and tax.
Ready to Activate Your Strategy?
- Already using Rho? You’re one click away from smarter cash management
- Rho Treasury is available to clients with $350K+ in deposits
- No monthly fees, no yield spread skimming. Just transparent advisory pricing and real ROI
- Sync with Tax Hack to start planning R&D spend, running credit scenarios, and getting compliant ahead of Q4
- You’ve already invested in the right platform. Now it’s time to maximize the return
It’s time to think beyond basic banking. Smarter treasury is the first step.
Join our upcoming webinar to see how Rho Treasury works in practice and get your questions answered by experts from both Rho and Tax Hack.
Final Thoughts
Rho Treasury is built for startups and scaling businesses with $350K+ in deposits. There are no monthly fees and no hidden yield cuts, just clear pricing and real returns. When paired with strategic tax planning from Tax Hack, you get a smarter, more coordinated approach to managing cash, minimizing tax exposure, and extending runway. You’ve invested in the right tools, now it’s time to put them to work.
Rho is a fintech company, not a bank or an FDIC-insured depository institution. Checking account and card services provided by Webster Bank N.A., member FDIC. Savings account services provided by American Deposit Management Co. and its partner banks. International and foreign currency payments services are provided by Wise US Inc. FDIC deposit insurance coverage is available only to protect you against the failure of an FDIC-insured bank that holds your deposits and subject to FDIC limitations and requirements. It does not protect you against the failure of Rho or other third party. Products and services offered through the Rho platform are subject to approval.
Investment management and advisory services provided by RBB Treasury LLC dba Rho Treasury, an SEC-registered investment adviser and subsidiary of Rho. Rho Treasury investments are not deposits or other obligations of Webster Bank N.A., or American Deposit Management Co.’s partner banks, are not FDIC insured, are not guaranteed and may lose value. Investment products involve risk, including the possible loss of the principal invested, and past performance does not future results. Treasury and custodial services provided through Apex Clearing Corp. and Interactive Brokers LLC, registered broker dealers and members FINRA/SIPC. The material provided herein is for information purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy an interests in any fund named herein or any other security. The information provided is not and should not be considered a recommendation to purchase or sell any particular security.
1 Up to 2% cashback; terms and conditions apply. See eligibility and complete Rho Cashback Rewards Program terms and conditions here.
*RBB Treasury LLC dba Rho Treasury, an SEC-registered investment adviser , and subsidiary of Rho seeks to earn net returns up to 4.27% annually on your idle cash. Net yield numbers as of 07/23/2025, and assumes total Rho deposits of $20M+ and an annual fee which ranges from 0.15% for deposits of $20M or more to 0.6% (the maximum annual fee) for deposits under $2M. Registration with the SEC does not imply a certain level of skill or training.
This content is for informational purposes only. It doesn't necessarily reflect the views of Rho and should not be construed as legal, tax, benefits, financial, accounting, or other advice. If you need specific advice for your business, please consult with an expert, as rules and regulations change regularly.
Any third-party links are provided for informational purposes only. The third-party sites and content are not endorsed or controlled by Rho.
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