• Home
  • About Us
  • Services
  • Member Login
  • Membership Plans
  • Blog
  • Contact
    Call us
    08037134221, 07069036563
    |
    treasurymanagers2001@yahoo.com
    Chartered Institute of Treasury ManagementChartered Institute of Treasury Management
    • Home
    • About Us
    • Services
    • Member Login
    • Membership Plans
    • Blog
    • Contact

      Uncategorized

      • Home
      • Blog
      • Uncategorized
      • ACHIEVING OPERATIONAL AND FINACIAL EFFICIENCY IN TREASURY

      ACHIEVING OPERATIONAL AND FINACIAL EFFICIENCY IN TREASURY

      • Posted by Olumide Adedoyin
      • Categories Uncategorized
      • Date December 29, 2020
      • Comments 0 comment

        It is trite to note that Treasury has already achieved a certain degree of centralization with all the reforms and policy adjustments since the introduction of the Treasury Single Account in Nigeria. There are however challenges, working with core banks for cash management is important but not all of those banks provide cash management services. An essential first step, however, has been to centralize liquidity so that treasury has visibility and control over resources.

        By providing the benefits of centralization, whilst also ensuring that there are no disruption in budgetary activities and production templates, the influence and control centralized treasury have led to trust and open communication in resources and fund management. Understanding cash and treasury management requirement and constraints would lead to greater efficiency and transparency.

        Implementing a liquid management tool is instrumental towards allowing effective mobilization of cash balances from banks in operation by government. This will lead to better visibility over cash balances across board, it will enhance identification of ‘trapped’ cash i.e. cash that is held in bank account that are not included in cash pools and/ or is inaccessible for regulatory or other reasons.

        In other to build a reputable treasury, it is important to develop a Cash Hunt Project strategy that would not be a one off initiative but that would lead to building cash pool network as a holding as a transit into the main treasury at the close of business each day work needed to be done with units to enhance reporting and cash transfer mechanism for accounts held in various banks to ensure visibility over non-treasury accounts.

        It is important to put in place Treasury Process Development in place; a variety of both operational and strategic initiatives should be developed to highlight opportunities for greater efficiency and ensure processes are well documented for compliance and staff continuity purposes. This can be done by firstly, identifying and documenting original processes, and then analyzing and refining each one of them. These would clarify individuals’ roles and responsibilities and improve efficiency.  

        One aspect of this process development project is to standardize reporting, in the past producing bespoke information and formats require considerable effort. Now things are more streamlined since such report are now automated and comes from one source; namely summary of all banking transactions summarized into the holding accounts while other account receivables reflects zero balances.

        The functions of treasury as defined by various school of thought is complex as it entails diverse field of finance chief among which are investments, portfolio management, account receivables, cash and liquidity management, FX and bank relationship. It is therefore imperative for treasury operations to be conducted by treasury professionals as opposed to becoming integrated into the wider accounting function with different priorities. For organizations and entities that have embraced these, they have recorded high success with better process cohesion, clearer responsibilities, greater efficiency, and a stronger treasury identity.

        While it is important to optimize treasury processes, attention must be paid to processes that influences working capital management; such as sales outstanding collections. While it is true that collections are not part of core treasury responsibilities, it is essential that treasury is involved in the project to reduce overdue customer collections, not only due to working capital implications, it could also conflict with overall cash hunt initiative.  

        The value of relationship cannot be over emphasized in standardizing, streamlining and centralizing treasury activities because of the multiple benefits in terms of more efficiency, readily available information and trustworthiness to banking entities, and counterparties on project collaboration and executions.

        • Share:
        author avatar
        Olumide Adedoyin

        Previous post

        PROTECT YOUR COMPANY AGAINST FAKE IDENTITY FRAUD: Protection through Awareness
        December 29, 2020

        Next post

        CASH MANAGEMENT AND THE GLOBAL ECONOMY
        January 19, 2021

        You may also like

        CASH INVESTMENT IN A TELECOMMUNICATION COMPANY
        4 February, 2021

        The need to understand customers’ needs and the ability to optimize them by delivering services accordingly has given vent to analyzing liquidity management in the industry. It is important to note that this analysis has revealed some trends in allied …

        CASH MANAGEMENT AND THE GLOBAL ECONOMY
        19 January, 2021

        Almost all companies today have in place a cash management system. This system helps obtain bank statements automatically, plan current account balances, and manage all payments order on a unified system. In a summary, cash management is the basis of …

        ACHIEVING OPERATIONAL AND FINACIAL EFFICIENCY IN TREASURY
        29 December, 2020

        It is trite to note that Treasury has already achieved a certain degree of centralization with all the reforms and policy adjustments since the introduction of the Treasury Single Account in Nigeria. There are however challenges, working with core banks …

        Leave A Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        • Education
        • Theidioms.com
        • English language
        • Shayari
        citm logo

        The Institute

        • About Us
        • Mission & Vision
        • Contact
        • Blog

        Useful links

        • Courses
        • Events
        • Gallery
        • FAQs

        CONTACT US

        BZ 1& 2 Sarduana Crescent
        off Junction road Kaduna
        Kaduna State.

        08037134221

        treasurymanagers2001@yahoo.com

        ©2020 Chartered Institute for Treasury Managers

        • Privacy
        • Terms
        • Sitemap

        Become a Member?

        Become a CITM member

        Register Now