Treasury and Cash Management Tool

The tool guide identifies key components of the modern treasury function and provides tools and resources to help finance professionals expand capabilities in these areas. The guide also emphasizes the importance of alignment, understanding and close co-operation between the management accounting, tax and treasury functions to achieve effective decision making on investments, funding and risk strategies.

Published on 23 May 2017
Whether it knows it or not, almost every business of any size 'does' treasury: the administration of its financial assets and holdings with the aim of optimising liquidity, ensuring the right investments are made and reducing risk.
Treasury practices have become significantly more complex since the global financial crisis. The landscape is abounding in uncertainty and risks. At the same time, big data and value chain financing are providing new and powerful opportunities to evolve how organisations 'do' treasury.
The dynamic nature of treasury is challenging those responsible for it. With its emphasis on cash, risk and markets, treasury differs from other finance activities. The complexity of instruments, systems and interactions with the business, both operationally and strategically, means that some of the skills needed for treasury are specialised.
Management accountants who have treasury responsibilities are dedicating more time to working across financial and non-financial units, leading the culture of risk management and developing and challenging shareholder models and linking to economic models.
This guide highlights the need for close alignment, understanding and cooperation between the management accounting, tax and treasury functions when making decisions on investments, funding and risk strategies.
As guardians of organisations’ assets, management accountants have responsibility for stewarding liquidity, optimising capital structures and supporting the execution of strategies that generate value for all stakeholders. Particularly since the 2008 global financial crisis the treasury function of any organization is operating in a much more complex environment in which to generate value. Management accountants must update their skills and competencies to cope with this new norm.
The Global Management Accounting Principles developed by the AICPA and CIMA underscore the importance of this stewardship role in both large and small organisations. The Principles outline the importance of relationships and communication that drives better decision making. They also provide guidance on the process of presenting the insight gained from analysing relevant information that is critical to the value creation process.
The Global Management Accounting Principles identify fourteen practice areas that make a contribution to the process of creating value. While there are interdependencies among all elements of strategy and finance, the key practice areas that this document expands upon include:
  • Treasury and Cash Management
  • Financial Strategy
  • Investment Appraisal
  • Risk Management
Written in partnership with the Association of Corporate Treasurers (ACT), the chartered body for treasury, and drawing on its technical expertise and treasury competency framework, this treasury resource will prove invaluable to management accountants who recognise these new challenges and wish to develop the capabilities to take advantage of the related opportunities.