Treasury are all those procedures and actions for the administration and management of money in an organization.
The treasury's operations encompass a multitude of financial and monetary functions, from sales receipts and payments to creditors, to negotiating loans and financial services with banks, managing income and expenses arising during sales operations and negotiation, as well as cash management in organizations.
Depending on the size of the company or the category, the treasury area may include more or less responsibilities, since it is one of the departments that has undergone the most changes in the business world.
One of the fundamental features of the treasury is the study and realization of budgets, which together with the management of deviations suppose a complex work.
They can be divided into several, although they are closely interrelated with each other:
- Risk management. Security measures in money management, such as contracting risk policies or monitoring of monetary flows.
- Accounting tasks. The transactions of collections, payments, expenses and income in the company, in addition to the management of transfers.
- Negotiation with third parties. Dedicated to establishing relationships with banks, interest groups and reporting to management.
- Liquidity mediation. Liquidity is an important ratio in the business world, as it allows you to see the money the company has and the money it has not yet converted.
- Sources of funding. How and at what cost is the company financed and the average time to convert sales into cash.