Financial Advisory Services

Treasury Management
A key component of any business large or small is how the cash, working capital and banking or other financial relationships are managed.

Treasury management can affect the lifeblood of a business which is the working capital and cash flow.

What is involved:

1. Cash management – effective management of cash and working capital at all levels of a company. Trimming a customer payment cycle from 90 days to 45 days can mean the difference between needing added financing and self sufficiency and financial security.
2. Banking and investor relationship management – this is key as maintaining your important relationships is critical to your success. If a key source of finance loses confidence in your business they can begin to pull back and either not provide working capital in the future or call existing loans (provided the agreements do not prohibit this).
3. Negotiation of financial agreements, loans, debentures, leases etc. this area can be critical as costs could be higher than anticipated or the loan covenants can be so onerous that it hobbles a business and prevents future growth.
4. Capital structure overall – what is the optimal capital structure for the business – also see Section 7 Business financing
5. Bonding – for some businesses this is a key component of being able to effectively sell products and services; do you know where to go to obtain and how to negotiate terms and conditions?
6. Insurance programs – comprehensive insurance coverage can save a company from disaster , ensure that cost effective coverage for key areas is in place – liability, property, business interruption, errors and omissions, product liability, D&O coverage, employee theft, etc.
7. Cash forecasting – needs to be updated on an ongoing basis to ensure business viability and prepare for business up turns or downturns
8. Foreign exchange hedging
9. Interest rate hedges

The above are key components and are part of the Treasury process. Whether or not you have someone overseeing this varied portfolio of responsibilities or many individuals are managing  various aspects a review of your Key Treasury areas can save you money and allow your business to continue to grow successfully in the future.

Clausen & Associates have many years of experience in managing Treasury issues and can assist you to implement a Treasury review program, set up the Treasury function under one umbrella or ensure that your staff who are handling varied aspects of Treasury responsibilities are functioning together optimally to save you money and enhance cash flow for business growth.