Treasury Management Flashcards
refers to the process of managing an organization’s financial resources to ensure that it has enough cash flow to meet its obligations while also maximizing the return on investments and minimizing financial risks
treasury management
importance of treasury management
Ensuring liquidity
managing financial risk
optimizing returns
key responsibilities of treasury managers
cash management
risk monitoring
financing and investments
regulatory compliance
ensuring efficient management of the organization’s cash resources, including forecasting, collection, and disbursement
cash management
securing appropriate financing resources and managing the organization’s investment portfolio to optimize returns
financing and investments
continously monitoring and managing various financial risks such as currency, interest rate, and credit risks
risk monitoring
ensuring that the organization’s treasury operations comply with relevant financial regulations and reporting requirements
regulatory compliance
objectives of treasury management
liquidity management
risk management
capital management
ensuring that the organization has sufficient cash and liquid assets to meet its short-term obligations and operational needs
liquidity management
identifying, analyzing, and mitigating various financial risks, such as currency fluctuations, interest rate changes, and credit risks
risk management
optimizing the organizations capital structure including the mix of debg and equity financing, to support long-term growth and profitability
capital management
key components of treasury management
cash management
risk monitoring
financial planning
strategic planning and budgeting to support the organization’s long-term financial goals and objectives
financial planning
basics of cash management
forecasting
disbursements
collections
reconciliation
accurately predicting and planning for future cash inflows and outflows
forecasting
streamlining the process of receiving and depositing customer payments
collections
efficiently managing the timely and accurate payment of the organization’s obligations
disbursements
ensuring the accuracy and integrity of the organization’s cash resources
reconciliation
revenues, investments, financing activities, and other sources of cash entering the organization
cash inflows
operating expenses, capital expenditures, debt repayments, and other uses of cash leaving the organization
cash outflows
the difference betweeb cash inflows and outflows, indicating the organization’s overall financial health and liquidity
net cash flow
how companies manage cash
banking relationships
investment strategies
digital payment solutions
establishing and maintaining strong relationships with banks to access a variety of cash management services, such as accounts, payment and liquidity tools
banking relationships
allocating excess cash to low-risk, lighly liquid investments to generate additional returns while maintaining access to funds
investment strategies
leveraging digital technologies such as online banking, mobile payments, and electronic invoicing to streamline cash collection and disbursement processes.
digital payment solutions
simple techniques to keep cash flow positive
Working capital optimization
inventory management
cost control
effective invoicing
Treasury management
ensures that the company
always has enough cash on
hand to meet its short-term
obligations, such as paying
bills, salaries, and suppliers
ensuring liquidity
Proactive treasury
management helps identify
and mitigate financial risks,
protecting your
organization from potential
market fluctuations and
economic uncertainties.
managing financial risks
It also involves making smart investment decisions
with the company’s excess cash to earn additional
income without taking on too much risk..
optimizing returns
Timely and accurate invoicing,
with clear payment terms and
follow-up procedures, to ensure
prompt customer payments.
effective invoicing
Optimizing inventory levels to
minimize holding costs and free
up cash tied up in excess stock.
inventory management
Closely monitoring and
managing operating expenses to
identify opportunities for cost
savings and efficiency
improvements.
cost control
Aligning the timing of cash
inflows and outflows to maintain
a positive cash flow position and
avoid potential liquidity issues.
working capital optimization
