Treasury Management

Treasury Management:

It is the management of cash, currency, fund, bank and financial risk. Therefore, it is an imperative tool of finance. In this management, finance manager ensures the cash inflow and outflow. He creates the list of all receivable amounts that will raise treasure house of company. He too tracks the dates in which he has to receive the fund from debtors. Beneath this management, he estimates all financial risk for the investment of cash. All investment is on the base of investment policy. Most of the organizations have separate treasury department. When company deals with foreign currency, then the management of foreign currency risk is the responsibility of treasury department.

In government departments, fund management is below treasury management. Treasury department builds map to collect for govt. treasure and decide how to utilize it for welfare works. Finance manager builds good relationship for getting locker facility at cheap rates and company can keep its significant documents in locker of banks. Such documents and commercial papers can be sold by banks in money market and company can join in money market by indirect manner. Finance manager as well do the duty to sell company’s fixed assets at high price and he also obtain the properties for company at cheap rate for efficient use of treasure of company.

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