Treasury is the custodian of essential bank documents such as checkbooks, debit cards, grid cards, corporate credit cards, etc.
Fremont, CA: Treasury teams are crucial to their organizations' growth, yet they are frequently misunderstood or undervalued. The following recommendations can help you improve the quality of your workforce and the performance of your treasury.
LIQUIDITY MANAGEMENT
The treasury's primary task is to maintain the organization's liquidity. Daily cash flow is critical for managing short-term liquidity. It gives us information about payments made throughout the day, as well as acute financial deficits and surpluses. It provides the treasury with a source of planning so that no key payments are missed, relevant debt instruments may get raised on reasonable terms, and surplus funds can be used to earn overnight profits.
RISK MANAGEMENT
A company is exposed to a variety of risks, including operational risk, commodity risk, liquidity risk, foreign exchange risk, interest rate risk, counterparty risk, credit risk, and so on. By implementing an effective risk management policy, an effective treasury may assist firms in reducing unnecessary risk. The risk management policy outlines the acceptance of essential risks, risk appetite, and risk management mechanisms.
SAFEKEEPING
Treasury is in charge of essential bank documents such as checkbooks, debit cards, grid cards, corporate credit cards, and so on. There are several cases in the history of promoters being duped by people in their company owing to the abuse of important papers. Therefore, all important papers should be unsigned and kept safely under lock and key. All relevant PIN/Passwords should get stored in password-protected folders with senior management or authorized staff.
RECORD KEEPING
Treasury must manage a large number of papers, including sanction letters, term sheets, signed loan contracts, and communication and mailings with banks. These records should be filed in date-order chronological sequence, with a copy kept on the company's server accessible exclusively to the treasury staff. This method can save a significant amount of time that would otherwise be spent shuffling papers when retrieving.
