Learn what treasury management is and how to keep it under control
Posted: Sun Dec 15, 2024 9:42 am
Learn what your company's treasury is and how to manage it.
We detail the main tasks you must perform to control your treasury.
A company can sell a lot and have a high profit margin. But this does not necessarily mean that it has to have liquidity to meet its payments. This happens because the flow of income and expenses does not match the flow of money in and out of the company.
Cash management is the daily workhorse of many companies. Ensuring the necessary liquidity at all times and obtaining profitability from cash surpluses is not an easy task.
Start of marked textTWEET IT! It's important to keep your company's cash management under control. Learn how to do it correctly.End of marked text
Post content
What is treasury management?
Customers who pay late and suppliers who demand cash payments
7 tasks necessary to optimize treasury management
The new role of treasury managers: less operations and more analysis
1)What is treasury management?
A company's cash management involves optimizing liquidity . The goal is to ensure that the funds necessary to make the payments committed by the company are available in the appropriate currency and at the right time.
Company treasurers must make the necessary clinics email list arrangements with financial institutions to obtain financing for the company's operations when necessary.
One of the points that treasury managers must take into account is the value date of transactions . Otherwise, they may incur costly overdrafts due to differences between the accounting date and the value date.
2) Clients who pay late and suppliers who demand cash payments
One of the premises of efficient treasury management is to have exhaustive control of collections and payments , collecting as soon as possible and trying to obtain financing from suppliers. But this is not an easy task, for the following reasons:
Certain clients , especially if they are important, may delay payment deadlines, although this should always be within the maximum legal period of 60 days . To minimise the effect of delays in payments, the company can resort to factoring and advance the collection of its invoices . Here, the problem would lie in the event of returns of the credit advances remitted by the company. This can be solved by carrying out non-recourse factoring , in which case the transferor company is free of liability in the event of non-payment by its client.
We detail the main tasks you must perform to control your treasury.
A company can sell a lot and have a high profit margin. But this does not necessarily mean that it has to have liquidity to meet its payments. This happens because the flow of income and expenses does not match the flow of money in and out of the company.
Cash management is the daily workhorse of many companies. Ensuring the necessary liquidity at all times and obtaining profitability from cash surpluses is not an easy task.
Start of marked textTWEET IT! It's important to keep your company's cash management under control. Learn how to do it correctly.End of marked text
Post content
What is treasury management?
Customers who pay late and suppliers who demand cash payments
7 tasks necessary to optimize treasury management
The new role of treasury managers: less operations and more analysis
1)What is treasury management?
A company's cash management involves optimizing liquidity . The goal is to ensure that the funds necessary to make the payments committed by the company are available in the appropriate currency and at the right time.
Company treasurers must make the necessary clinics email list arrangements with financial institutions to obtain financing for the company's operations when necessary.
One of the points that treasury managers must take into account is the value date of transactions . Otherwise, they may incur costly overdrafts due to differences between the accounting date and the value date.
2) Clients who pay late and suppliers who demand cash payments
One of the premises of efficient treasury management is to have exhaustive control of collections and payments , collecting as soon as possible and trying to obtain financing from suppliers. But this is not an easy task, for the following reasons:
Certain clients , especially if they are important, may delay payment deadlines, although this should always be within the maximum legal period of 60 days . To minimise the effect of delays in payments, the company can resort to factoring and advance the collection of its invoices . Here, the problem would lie in the event of returns of the credit advances remitted by the company. This can be solved by carrying out non-recourse factoring , in which case the transferor company is free of liability in the event of non-payment by its client.