Treasury

  • Description
  • Tasks
  • Skills
  • Useful Knowledge
  • Entry Qualifications
  • Professional Qualifications
  • Trends
  • Resources

At the heart of every large company is a treasury function which looks after all the money and makes sure the balance of liquidity is just right. As a treasury professional, you’d be using financial products to support and grow the main business (often through trading), making sure your business is stable enough and has enough cash reserves and financial assets to see them through current market conditions and future liabilities. Much like personal money management, but on a much larger scale. In essence, treasury is a mix of many disciplines – money management, accountancy, risk management, corporate governance and corporate financing. In businesses that are cash rich, treasurers will be looking for the best possible returns. Your choice of investment would be based on the risks your organisation would want to take. If companies are in debt, treasurers will also raise money, in the form of loans, via shareholders or refinancing. Another essential aspect of a treasurer’s role is to model financial and economic risks, trying to pre-empt the effect of sudden fluctuations in currency values or interest rates. As treasurer, it would be your job to set the boundaries and financial controls to try and ensure the business does not over-extend itself and get out of its depth.

Salary

Most people move into treasury with substantial business experience, and therefore salaries offered are generally generous and can start from £35,000 per annum. With right experience, qualifications and skills you could earn in excess of £100,000 per annum. This does not include potential bonuses and additional benefits.  Salaries will vary considerably based on location and employer.

  • Managing the organisation’s daily cash flow and funds
  • Checking that the cash funds available are adequate enough to enable a business to operate effectively
  • Forecasting and modelling future events, identifying potential challenges if cash flow is limited
  • Analysing the impact of international money markets and economic conditions, and the impact these might have on the business, products sold and services
  • Raising new funds, such as refinancing or approaching shareholders
  • Monitoring and controlling the collection of outstanding debt
  • Negotiating loan and overdraft terms with company bankers, liaising with banks and other financial suppliers
  • Evaluating projects and potential acquisitions or business mergers, to ensure they are beneficial to company performance
  • Communicating with tax, accountancy and other financial teams
  • Updating executive managers and Board members on risks identified and recommending actions to be taken
  • Confident, professional communicator
  • Excellent understanding of business and economics
  • Articulate, both verbally and in writing
  • Strong analytical skills
  • Ability to absorb high volumes of information and react quickly
  • Good decision maker
  • Accuracy and attention to detail
  • Objective, logical and enquiring mind
  • Self-assured negotiator
  • Organised and resilient when under pressure
  • Good IT and numeracy skills
  • Excellent commercial judgement
  • Willingness to, on occasions, work significant extended hours, for instance during refinancing negotiations or overseeing complex acquisitions and mergers

Treasury is a role which is often undertaken by experienced finance, accountancy and financial services professionals. An employer will expect that through training and qualifications, the following is gained:

  • Knowledge of how businesses work, strategies and the methods for raising finance
  • How to assess different investment risks and the terms and conditions associated with them
  • Statutory and other regulations relating to the management of cash balances within your organisation and sector
  • Thorough understanding of how to monitor and interpret fund performances
  • How to manage economic and business crisis situations

Careers in treasury are mainly aimed at people who are switching from tax, accountancy, corporate finance or legal departments.  If joining a firm as a graduate on a finance training scheme, many employers operate rotational programmes which enable people to move around the different functions, including the treasury department, before settling in a specific area. Subjects like economics, business studies, mathematics, accountancy and finance are particularly useful. Being able to interpret figures, work out budgets, tally project costs and convey information clearly in presentations and reports is a big element of the job.

Many treasurers are already qualified in accountancy or risk management. Although there are a number of appropriate treasury training programmes, the most comprehensive and internationally recognised qualifications for treasurers are those offered through and administered by the Association of Corporate Treasurers (ACT). The core treasury qualification is the AMCT Diploma in Treasury.  An accelerated path is open to Association of Certified Chartered Accountants (ACCA) members and affiliates, Chartered Institute of Management Accountants (CIMA) members and students, Institute of Chartered Accountants in England & Wales (ICAEW) members and Institute of Chartered Accountants of Scotland (ICAS) members.

The ACT also offers other standalone qualifications, which tend to be more specific to certain functions and may count towards compulsory papers in the AMCT Diploma. They include:

  • Certificate in Financial Fundamentals for Business (CertFin)
  • Certificate in International Treasury Management (CertITM)
  • Certificate in International Treasury Management – Public Finance (CertITM-PF)
  • Certificate in International Cash Management (CertICM)
  • Certificate in Corporate Finance & Funding (CertCFF)
  • Certificate in Risk Management (CertRM) 
  • MCT Advanced Diploma (from ACT)

Some members of the Association of Accounting Technicians (AAT) also work in treasury management, either as accounting technicians or progress onto further qualifications.

Large and medium sized companies tend to have dedicated treasury functions. Naturally, the volume will depend on the complexity of transactions and the level of international activities. Other opportunities exist in accounting firms that employ treasury specialists to do advisory work for clients, for example reviewing a company’s treasury operations. Treasury opportunities also exist in financial institutions (which tend to have large treasury departments with many specialist employees). In-house corporate treasury positions can be found anywhere in the UK. However, in practice many are based in London, the South East and other major financial centres around the UK – such as Manchester, Cardiff and Edinburgh. There are usually extensive opportunities for treasury staff to travel domestically and overseas. Many companies will be multinationals with group activities in the EU and beyond.