How to manage the treasury of a company

The management of the treasury of a company is a task that can not be uncontrolled or disorganized. A good management of the treasury will allow the company to be economically viable and to follow an adequate decision making dynamics in order to avoid or solve the possible liquidity problems that may arise during the business year. It is very important to take it and plan it daily to avoid and solve the problems of liquidity and cash. In addition, it is essential to see the real result of the activity and operation of the company. In the following article we show you some key aspects to manage the treasury of a company properly.

Steps to follow:


Treasury management refers to a comprehensive control of payments to suppliers, collections, transactions with financial institutions and all those monetary actions and operations that are related to the cash flow of a company. It is also very useful to anticipate the needs of money that you will need and at what time to avoid unnecessary expenses, valuing how much money we generate.


In general terms, there are a series of factors that are decisive in the task of optimally managing the treasury. The first one is that every company must be up to date with the cash flow, that is, know what their liquidity is at all times, as well as their bank accounts, payments and collections. In order to know the cash flow that is generated, the difference between the money that goes in (we charge) and the outgoing (payments) must be calculated.


Establishing and setting efficient collection and payment policies is also a central point. The ideal is to choose the collection and payment instruments that best suit us and each client or provider in particular. At the beginning of setting up a company, the power to decide when to pay and collect will be low, although little by little it is always winning and you can negotiate specific forms of payment and collection for each supplier and customer respectively.


Likewise, it is necessary to know exactly the sources of financing available, because if we know what their characteristics are, we can adapt the work mechanics to them and satisfy our needs. Mainly, we will work with financial entities and banks, having at our disposal different products that can allow us to finance payments or advance our collections to gain liquidity, always looking for the option that best suits us. Other options given the lack of liquidity would be the public financing options, although the variety of products is lower and we must adapt more.


Negotiation with financial institutions also has an important role. As entrepreneurs, we have the possibility to negotiate everything related to banking operations (commissions, interests, terms, etc.) according to our interests.


In large companies, treasury management is under the responsibility and responsibility of a specialized accounting department. In the case of SMEs and self-employed workers, it is also important to make good treasury management and, even if we do not have the necessary knowledge, we can resort to a very practical alternative that allows us to do it successfully. It would be done with an excel sheet, adding the expected collections for the next months and subtract the payments that must be made to see what months you will need more money or how much you will win.


Another option would be to have the services of an accounting manager, helping us to control personally and with all kinds of facilities the accounting, tax and labor issues of our business.