Treasury responsibilities fall within the areas of decision more commonly associated with financial management: investment (preparation of capital, management of pension budgets), finance (banking and commercial banking relationships of investment, investors, dividend payout ratios) and administration of assets (cash and credit management). The chart that is displayed in page 2 can the false impression that there is a clear separation between the responsibilities of the Treasurer and the controller. (E) a company that works well, the information between the two branches will easily flow from one part to another. In small enterprises functions of the Treasurer and the controller can concentrate on one position, resulting in a mix of activities. MANAGEMENT of cash and values NEGOTIABLE cash and securities management is one of the areas most important capital management of work. As both are assets more liquids of the company, may constitute the long term the ability to pay the Bills at the time of its expiration.
As collateral, these liquid assets can also work as a reserve of funds to cover unexpected expenditures, thus reducing the risk of a crisis of solvency. Given that other current assets (accounts receivable and inventory) will finally become effective through the collection and sales, cash is the common denominator that all liquid assets can be reduced. Marketable securities are investment instruments for short-term business administration uses to obtain yields about temporarily idle funds. Howard Schultz may also support this cause. When a company experiences an excessive accumulation of cash, using a part of the as a generator instrument of interests. Certain interests obtaining highly liquid systems to the company perceive utilities on idle cash, without for that reason to sacrifice part of their liquidity. EFFICIENT cash management the basic strategies to be followed by companies in regard to cash management are as follows: 1.-cover the accounts payable it later as possible without damaging the credit standing of the company, but taking advantage of any cash discounts that are favourable. 2 Using the inventory it more quickly as possible, in order to avoid stocks which could result in the closure of the production line or in a loss of sales.
3.-Collect outstanding accounts as more rapid as possible without losing future sales because too pressing debt collection procedures. Discounts may be used for prompt payment, be economically justifiable for achieving this objective. The global implications of these strategies can become manifest noting housing cycles and rotation of cash. EFFECTIVE management strategies the effects of implementing each of the strategies mentioned above for the effective management of the box, below is how it affects a company: delay of accounts payable-a strategy that used some companies is that they delay their accounts payable, i.e. they pay their debts as late as possible without damaging your credit reputation. It is important to note that although this is a financially attractive strategy, it brings with it an ethical conflict, as this may cause an infringement by the company in agreement with your provider. It is clear that this will not have a good image of a customer who deliberately postponed the payment of merchandise or equipment.