Importance of the treasury in the company


It seems that we are going back from the hardest moments of the last international economic crisis. We are still going to suffer the consequences for a while, among other groups, the owners of SMEs. Learning from the mistakes that entrepreneurs and businessmen made and which cost them so expensive, goes through understanding the importance of the treasury in the company.

From the treasury department is managing cash flow, Up there, everyone agrees. But, with a nuance that makes the difference between success and failure. The treasury must deal with managing these flows with criteria of certain profitability. Translated into a common language, you have to manage payment and collection rhythms with control and anticipation. In particular, the relationship of these professionals with financial institutions is one of the keys to their role, as we have analyzed in detail.

Why is the treasury so important?

We never tire of insisting on the importance of the treasury when it comes to the success of a company. In addition to worrying that your project is innovative, fits in with market demands and is planned consistently, you have to make sure that your treasury works in sync with the needs of your company and financial reality.

The treasury department works like a radar that has the obligation to detect changes and demands of the economic environment and the internal environment of your business. Its job is to control the times and have all the information in advance, to ensure that your means of business financing and your collection chain are not trapped by economic instability.

We talk about issues as decisive as contributing to the profitability of a company and protecting its margin of action, without carrying out speculative practices and incurring the lowest possible costs. Play with the short and medium-term, achieve the best conditions in operations with banks and customers. A complex and highly specialized activity that should be left in the hands of experienced professionals who have the most advanced technological tools to help them.

How to enhance the treasury management in the company?

Remember, a well-managed treasury allows your company to enjoy “cash”, not only to keep up with your payments but also to face unforeseen events. There are certain businesses where this cash flow control is even more important. We are referring to those of a seasonal nature, with inflows of money limited to certain periods of the year and in which the provision of fixed expenses is essential.

One of the pieces of advice that have always circulated regarding the necessary disposition to manage the treasury and not have scares says that one must be ” prudent on the subject of income and pessimistic on expenses.” The idea is that you always calculate what you have to pay upwards, that simple gesture will make you accumulate a remainder that will surely be very useful.

If you keep wondering why is the treasury so important? We propose a very visual comparison: the treasury is like the lifeblood of your company. Perhaps that is why it is said that it is the management of “working capital” that allows your operations to be kept up to date. And, it reduces the loss of confidence of the banks we work with so that they are more willing to help us at times when we need to resort to external financing.

There is no possible doubt regarding the importance of the treasury in the company, yes, applying the actions that guarantee the control and anticipation that gives it meaning.

Probably wanna read:

Zeen is a next generation WordPress theme. It’s powerful, beautifully designed and comes with everything you need to engage your visitors and increase conversions.

Zeen Subscribe
A customizable subscription slide-in box to promote your newsletter
[mc4wp_form id="314"]