AFP’s recent report on Navigating the Top Tasks in Treasury - Treasury in Practice Series, underwritten by GTreasury, reviews treasury’s role and gives practical examples of how to carryout basic key tasks in:
- Debt and capital markets
- Capital planning and allocation
- Cash management and forecasting
- FX trade verifications
- Pulling/Retrieving bank files
- Setting the cash position
- Reviewing account activity.
Andrew Deichler and Tom Hunt, authors of the report, have 14 takeaways - all full of practical sense. Three CTMfile particularly liked are:
- Issuing debt often requires board and regulatory approval, as well as a lot of additional prep work. That process can take months, so treasury needs to start the process well in advance.
- Using a treasury management system (TMS) can automate a lot of a treasury department’s cash management needs, but not all information will be captured and transferred in an automated way. A cash positioner will have to go in and make sure that information is captured and communicated.
- For FX trade verifications, treasury functions need to ensure that the individual generating the payment isn’t also approving the deal.
CTMfile take: Sanity checks of the numbers produced by any system, particularly a TMS, are vital to preserving your company's funds and liquidity.
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