Job Description of a Treasurer

Explanation

Treasurer’s main job is to manage the finance in such a way that minimizes the risk, prevents the financial crisisFinancial CrisisThe term “financial crisis” refers to a situation in which the market’s key financial assets experience a sharp decline in market value over a relatively short period of time, or when leading businesses are unable to pay their enormous debt, or when financing institutions face a liquidity crunch and are unable to return money to depositors, all of which cause panic in the capital markets and among investors.read more, and ensures that there is no shortage of finance. The main duties of the treasurer include forecast cash flowsCash FlowsCash Flow is the amount of cash or cash equivalent generated & consumed by a Company over a given period. It proves to be a prerequisite for analyzing the business’s strength, profitability, & scope for betterment. read more, arranging funds, investing funds, ensure sufficient finance available for operating and other activities, ensure smooth conduct of business, maintain relationships with credit rating agencies, bankers, and lenders, invest in various statutory funds like PF, Pension fundPension FundA pension fund refers to any plan or scheme set up by an employer which generates regular income for employees after their retirement. This pooled contribution from the pension plan is invested conservatively in government securities, blue-chip stocks, and investment-grade bonds to ensure that it generates sufficient returns.read more, etc., manages other investment also and makes or helps in making the finance-related decision to the organization. The treasurer is the person who is known for the leadership of finance management, debt management, and investment management functions and its related affairs. He also supervises the maintenance of internal control to safeguard assets and the integrity of the monetary system.

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Responsibilities of a Treasurer

Treasurer maintains a favorable financial position for the organization so that organization runs smoothly. He is a financial manager. The primary job description of the treasurer includes the following:

  • Accounting and Fiscal Control: The treasurer makes or directs the preparation of financial records, financial plans, policies, and other reports. He also ensures that no financial problems arise in the organization. He makes sure that sufficient funds are available for operating, financing, investing, and other activities, etc.Makes Financial Planning: The treasurer does financial planning & analysis and forecasts the cash flow so that he can do planning for arranging or investing the funds. He participates in the development of the organization’s plans and programs. He evaluates whether funds to be invested in financing activitiesFinancing ActivitiesThe various transactions that involve the movement of funds between the company and its investors, owners, or creditors in order to achieve long-term growth are referred to as financing activities. Such activities can be analyzed in the financial section of the company’s cash flow statement.read more or investing activities. He figures out the outcome of financial plans and accordingly makes the decision.Manages the Functions of short-term or long-term financial needs. Manages tax functions. Determines or plans proper capital structureCapital StructureCapital Structure is the composition of company’s sources of funds, which is a mix of owner’s capital (equity) and loan (debt) from outsiders and is used to finance its overall operations and investment activities.read more. Manages the risk through planning. Manages investor relationships and directs or helps management regarding strategic functions.

Requirements

To be a treasurer, the following are some of the requirements that the treasurer should fulfill:

  • For being a treasurer, one should first get a bachelor’s degree in either Accounting, Finance, business, or any of the related fields.After getting the required bachelor’s degree program, the person should find a suitable entry-level position and gain experience in the field.The treasurer should then try to broaden their skills by obtaining a different certificate voluntarily. These certificates and programs help in growing personal skills as well as financially. Examples of the certificates might include obtaining Certified Treasury Professional offered by the Association for the Financial Professionals. Along with this, treasurers can complete the Master’s Degree Program and advance in their fields.

Qualifications & Skills of a Treasurer

Let us discuss the qualification and skills of the treasurer.

Qualifications

An applicant applying for the post of a treasurer at entry level should have a bachelor’s degree in either Accounting, Finance, business, or any of the related fields. These degrees help the students in developing analytical skills as well as understanding the different financial analysis toolsFinancial Analysis ToolsFinancial analysis tools are different ways or methods of evaluating and interpreting a company’s financial statements for various purposes like planning, investment and performance.read more which help work in the practical world and be successful as a treasurer. Other qualifications that the treasurer may possess include the CPA certification, certification course in MS Office programs, etc.

Skills

An individual must possess the following skills and requirements to be hired or promoted as a treasurer:

The candidate should have the expertise to put in shape and to enhance the corporate strategy as well as the business growth of the company. This includes the tasks such as management of the investments of the company like handling of the borrowing requirements and cash surplus so that funds are not lying idle, management of the cash flows of the business, and ensure enough liquidityLiquidityLiquidity is the ease of converting assets or securities into cash.read more in the company so that operations of the company can continue smoothly, identification and management of the financial riskFinancial RiskFinancial risk refers to the risk of losing funds and assets with the possibility of not being able to pay off the debt taken from creditors, banks and financial institutions. A firm may face this due to incompetent business decisions and practices, eventually leading to bankruptcy.read more of the company, identifying the best possible ways for raising the capital for the new business initiatives and mergers and acquisitionsMergers And AcquisitionsMergers and acquisitions (M&A) are collaborations between two or more firms. In a merger, two or more companies functioning at the same level combine to create a new business entity. In an acquisition, a larger organization buys a smaller business entity for expansion.read more, monitoring the prevailing external market conditions and to act accordingly.

The treasurer of the company should possess necessary business skills so that its treasury knowledge, as well as experience, can be used effectively and ensure that there is proper communication with the company’s stakeholders so that the treasury objectives of the business can be achieved properly. This is important because the treasurer of the company is generally the main point of contact in the company for banks, consultants, credit agencies, regulators, etc.

The treasurer of the company should possess necessary persuasive influencing skills so that it can be a good team leader as well as a good team player to achieve both teams as well as business objectives. This is very much required to work effectively and efficiently in any organization. Like one has to persuade other people during the working and to support any plan or idea. Also, one has to work with people from different areas and opinions to ensure the availability of enough money as and when required closely.

Experience

The requirement of the experience for the treasurer varies from one company to another, and there are no specified criteria for the same. At the entry-level as a treasurer, generally, no experience is required. After completing the bachelor’s degree program, a person may begin the search for the job and find a suitable entry-level position. Further, the criteria and experience of recruitment will depend on the recruiter company. Most of the corporate treasury jobs require extensive related experience.

Conclusion

The treasurer is known as the financial manager of any organization. He is responsible for managing and arranging the funds and its related affairs. He is the person who manages the risk, makes proper plans of investment to ensure that sufficient liquidity and finance is available for operating and day to day activityOperating And Day To Day ActivityOperating activities generate the majority of the company’s cash flows since they are directly linked to the company’s core business activities such as sales, distribution, and production.read more. He is also responsible for maintaining a relationship with investors, credit rating agencies, bankers, and lenders. He helps top management in strategic decisions, so that vision and goals of the organization go hand in hand.

This has been a guide to the Treasurer Job Description. Here we discuss who is treasurer along with their job requirements, responsibilities, qualification/skills. You can also have these articles below to learn more about finance careers –

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