Treasury management controls an organization's cash, liquidity, funding, financial risk and banking relationships. It ensures the business can meet obligations while using cash and financing efficiently.
Which activities are included?
- Cash positioning and forecasting
- Liquidity and working-capital management
- Bank accounts and payment controls
- Funding and debt
- Foreign-exchange and interest-rate risk
- Investment and counterparty management
How does treasury differ from accounting?
Accounting records and reports transactions under financial standards. Treasury manages cash availability and financial exposures. The functions must reconcile but have different primary responsibilities.
Why is cash visibility important?
Balances can be spread across entities, banks and currencies. Timely visibility helps prevent avoidable borrowing, idle cash and missed obligations.
Which controls matter?
Use bank-account governance, segregation of duties, payment approval, authorized signatories, limit monitoring and independent reconciliation. Protect credentials and beneficiary changes.
What should be measured?
Track forecast accuracy, available liquidity, funding cost, FX exposure, bank fees, payment exceptions and counterparty concentration. Preserve definitions and periods.
