What is Treasury Management? Objectives of Treasury Management

Treasury Management is the set of managing a company’s day cash flows and large-scale decisions when it comes to finances. It can provide governance over a company’s liquidity, establish and maintain credit lines, optimize investment returns, strategize the best use of funds. As a company raises, earns, or uses cash, treasurers or senior officers ensure that there is working capital to maintain operations and reduce financial risks.

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·        Treasure management refers to a number of financial processes that help to optimize and control a business’s cash flow, liquidity and funding.

·        Businesses can operate treasury management functions on their own or work with a financial institution.

·        Treasury management services can help a business take control of it finances and prevent fraud through access to real-time information and reporting.

Treasury management encompasses an assortment of processes that manage a business’s finances with the aim of improving efficiency and mitigating financial risks.

Components of treasury management include cash flow, debt, liquidity management as well as transaction processing, forecasting and reporting capabilities and tools. Managing these functions effectively and efficiently can allow businesses to focus on planning for their future and achieving their goals.

Treasury management has long been an important aspect of many corporations’ financial management. It ensures the business is accurately tracking its daily sales and payments in an effective manner, while also having sufficient liquidity to meet both expected and unexpected financial obligations.

 

Treasury Management Objectives:

·        Maintaining Liquidity

·        Optimizing Cash Resources

·        Establishing and maintaining Access to Short-Term Financing

·        Maintaining shareholder relations

·        Managing risk

·        Coordinating financial functions and sharing financial information