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A treasury manager is responsible for managing an organization’s funds, including designing financial plans, raising capital, managing investments, preparing financial reports, and overseeing the treasury department. They may also need to travel to attend financial association meetings. The financial plan outlines how funds will be raised and used efficiently to achieve the organization’s goals, including borrowing from banks, issuing stocks and bonds, and devising risk management strategies. The manager evaluates budget forecasts versus actual results to improve performance and may oversee an entire treasury department. Professional certification is available through rigorous training.
A treasury manager can have several roles depending on the organization he works for, but the main duty is to look after the organization’s funds. Typically, treasury manager duties include designing and executing comprehensive financial plans for an organization, raising capital, making budget forecasts, managing funds and investments, directing the treasury department, preparing financial reports for the management team, and much more. In addition, the treasury manager’s job may require him to travel regularly to meet with clients and attend financial association meetings in order to keep up-to-date on any developments in his field.
Generally, in order to function, organizations need money to help fund their activities. Therefore, a typical organization might have a treasury manager who handles many of its financial affairs. He or she will be in charge of ensuring that the organization has a solid financial plan in place to operate. The main purpose of the plan is to describe how the funds will be raised and how they will be used efficiently to achieve the organization’s goals.
Issues related to the source and specific use of funds are addressed in the financial plan. One of the sources, for example, can be borrowed from a bank. In this case, the manager may need to take care of many tasks to secure the bank loan, which may include negotiating with bank managers about how much to borrow, at what interest rate, and for what period.
Other ways to raise capital can include issuing stocks and bonds. Essentially, whoever buys stock in a company is given ownership of a portion of the company. Those who buy bonds are lending money to the company and, in return, get a specified regular interest rate and the promise to repay the principal after a certain period. In particular, the path of issuing stocks and bonds may require the treasurer to work with investment banks to organize the best way to make this happen. The treasury manager can also devise risk management strategies to minimize risk in many types of investments the organization may make.
Also, a typical financial plan will contain the budget forecast for a certain period. After that specific period, for example, the manager evaluates the forecast versus the actual results, and there can often be differences between the two. Differences can be unfavorable, in which case he or she will usually need to identify the causes of this disparity. Once the causes of differences between forecasts and actual results are found, the manager can be equipped to make better decisions in the coming period to improve performance.
In large organizations, for example, the treasury manager job description may require the manager to use his team leader skills to oversee an entire treasury department dedicated to the organization’s many financial operations. Additionally, a team lead can be a certified treasury manager with an industry certification. To obtain a professional certification, the manager will receive rigorous training in virtually all aspects related to treasury management.
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