Five Reasons Your Small Business Needs a Treasury Professional

Treasury. What comes to mind? Someone in a bank vault counting coins?

The purpose of a Treasury Professional is to maintain the financial health of an organization by managing its finances. This can include forecasting cash flows and adjusting short term asset and liability levels to meet cash needs. A Treasury Professional can work in a banking or corporate environment. Historically, it has only been larger corporate organizations that have employed Treasury Professionals, but really, any size business can benefit from the services of a Treasury Professional. Here is why:

1. Your business involves money in some form.

You receive payments from customers and you make payments to vendors. You have choices to make. How do you pay? How do you get paid? When? Do you know your options? Could it be better? How do you choose?

A Treasury Professional will be on your side. When there are a lot of choices in products and partners, you need someone who has the same passion for financial products that you have about your work.

2. Bad players exist and others can be tempted.

Hide. Lock. Take. Signs with those words are visible in many places in Texas. Why? When you hide your belongings, lock your car, and take your keys, you reduce the chance of being burglarized. When you have business assets, physical and digital, you have the risk of those assets being stolen. For example, what if you rely on one employee to handle money? That might be working currently, but what happens if he experiences financial duress? Will he be tempted to take a little? maybe a lot? How do you reduce that risk?

A Treasury Professional knows the precautions that can be taken to reduce the possibility your business assets will be stolen. There are steps that can be taken to make it harder for those with access to steal your assets. Banks offer services, such as positive pay, that can deter and stop thieves. Also, regularly reviewing statements will identify unusual activity and increase the chance of recovering stolen funds.

3. You want to know where your business will be financially next week, next month, and over the next few months.

Maybe you have an annual budget. How often does the year go exactly as planned? Larger companies, while not abandoning the annual budget, incorporate a rolling cash forecast. Why? So they can borrow at lower rates and make the most of extra cash in a changing environment. When you see a cash need on the horizon, you have time to weigh options.

A Treasury Professional keeps current on the best cash forecasting practices. Why? Because she wants to make the best use of the company’s current assets and liabilities.

4. Your business uses a bank or some other financial institution.

How did you choose the bank your business uses? Does your bank offer the products you need? Do you know what products you need? Do you understand everything a banker is saying to you? Do you plan on applying for a loan?

A Treasury Professional understands banking and will help your bank or financial institution be the best partner for your business. If the bank you use now does not serve your needs, he will help you find a bank that will.

5. You have other things to do.

It is highly unlikely that you started a business because you enjoy administrative work. You partner with a CPA, because you know it’s important for your books to be correct and you want to leave nothing on the table with regards to taxes. You partner with a lawyer because you know it’s important to protect your interests. Why waste and risk your financial assets? Partner with a Treasury Professional.

A Treasury Professional can help your small business by leveraging financial knowledge to add value and giving you back vital time to focus on your core business.

Author Anita Trapp

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