2.0 - 2.4 CPE Cash is the lifeblood of all businesses. Without liquidity, businesses wither and die. The mission of the treasury department is to manage the liquidity of a business. This means all current/projected cash inflows/outflows must be monitored to ensure there is sufficient cash to fund company operations, as well as to ensure excess cash is properly invested. To do this, the function must ensure that existing assets are safeguarded through the use of safe and reliable forms of investment and hedging activities.
Treasurers list their most important tasks as:
- Enhance liquidity risk
- Optimize working capital (WC)
- Improve cash flow (CF) forecasting and visibility of cash
- Improve cash conversion cycle (CCC)
- Optimize inventory levels
Activities related to Cash include:
- Cash forecasting. Compile information to create an ongoing cash forecast. Information may come from the accounting records, the budget, capital budget, board minutes (dividend payments) and for expenditures related to acquisitions and divestitures.
- Working Capital monitoring. Review corporate policies related to WC and model their impact on cash flows.
- Cash Concentration. Create a system for funneling cash into a centralized investment account to facilitate the effective investment of cash.
Activities related to investing are broad and include:
- Investments. The corporate investment policy is used for allocating excess cash to various investments, depending on their ROR and how quickly they can be converted into cash.
- Grant credit. Issue credit to customers, which involves management of the policy under which credit terms are granted.
- Compliance. Ensuring the organization is in compliance with various laws and regulations.
- Fund raising. Determine when additional cash is needed, and raise funds through the acquisition of debt, sale of stock, or changes in company policies that impact the amount of working capital required to run the business.
- Risk management. Use various hedging and netting strategies to reduce risk related to changes in asset values, interest rates, and foreign currency holdings.
- Credit rating agency relations. Communication with rating agencies of the company's financial results and condition.
- Bank relations. Keep the company's bankers apprised of the company's financial condition/projections, and potential changes in need for borrowed funds.
This segment focuses on each of these roles and the sub-components involved.
Note: This course is also a part of The Controllership Series.
Learning Objectives
- Discover and outline typical Treasury activities.
- Explore cash forecasting.
- Examine how to prepare a cash forecast.
- Examine WC and monitoring.
- Understand cash concentration.
- Explore investments and banking.
Last updated/reviewed: March 14, 2024
91 Reviews (528 ratings)
Reviews
Anonymous
()
Great dive into the importance of cash forecasting and managing cash levels through a few different paths.
Nanette Strennen
( at Certco, Inc.)
This is a good overview of the Treasury function. It includes some good overall principles.
Anonymous
(Accounting Manager)
Great overview of functions/goals for the treasury department.
Anonymous
(CFO)
This course provides a great overview of the key areas related to treasury management. Finance professionals in larger companies can gain a high level understanding of the Treasury function while those working for a smaller organization which may lack a dedicated Treasury function can get started with the critical function of forecasting cash and monitoring working capital.
Anonymous
()
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Anonymous
(None)
Solid overview of the goals and techniques for cash forecasting and treasury management. Only one point to consider around concentration: a small amount of diversification of deposits is helpful with risk management. When SVB collapsed in March, we were happy to have another account at a major bank where we could stash some runway.
Anonymous
(Manager)
Thank for yet another great course! Lynn Foutain has very good slides, they are well organized and structured, provide good definitions and all the material necessary to be used in the future if needed as a reference material. She also uses good examples. The Final exam questions are relevant and easy to navigate.
Anonymous
(Consultant)
Great refresher on the importance of cash forecasting, cash concentration, investing and banking. Cash is King and it is important to make sure that you are monitioring cash inflows and outflows and that you can rely on the information that you receive from the others in your forecasting.
Anonymous
(controller)
Good training on highly important area of forecasting that is more important and of practical use than is realized. it is also more difficult than it looks due to the many factors that influence cash and financing a company.
Anonymous
(Accounting Officer)
This was informative and easy to follow. I'm in the banking industry and originally read the title of this course to be from that perspective so I was initially a little disappointed - but its always good to learn something new.
Anonymous
(Senior Accountant)
Thorough overview of Treasury's functions and goals. Good explanations, examples and comprehensively laid out. Excellent course to understand Treasury's corporate role for those not working in Treasury.
Kenneth Bruch
( at Ultradent Products, Inc.)
This was a very good overview of treasury responsibilities. This would be a valuable course for anyone wanting to learn more about treasury. The instructor delivered the message in very simple terms.
Anonymous
()
Lynn Fountain is a very good presenter. Her points are very well articulated and she has the ability to simplify complex concepts, making them easy to understand. She is my presenter of choice.
Brad Parker
( at Seamless Advisors)
As someone not in industry the idea of "treasury" has always been thrown around but not well defined to me. This was a very neat and tidy presentation which frames the work of a treasury group.
Anonymous
(Senior Accountant)
Cash forecasting has many moving parts generally outside the "day to day" transactional accounting efforts. This course does a great job of distilling it down to its most important elements.
Anonymous
()
The course provides plenty of relevant insights on the treasury function, with regards to cash, liquidity, and investments. The presentation was very clear and easy to understand
Anonymous
()
i thought the instructor was clear. The course was organized and material was relevant to my work. I also liked having the option to listen to the entire video or just segments.
Anonymous
(Controller)
More of a description of the treasury mgmt function than examples of the activities. That being said it was a thorough overview of the functions and best practices of treasury.
Anonymous
(Founder)
Overall it's a good course. Recommended. Thank you............................................................................................................................
Kevin Murray
(Business Partner - Strategic Projects at The Wesson Group)
This is a good review of the treasurer function. The significance of cash management can often be over-looked but this course will show why it is so important to a business.
Anonymous
(Consultant - Controller)
Good introduction
Carol Brunsden
(Auditor at Intelligent Software)
Excellent covering the responsibilities of the Treasury area . It provided the steps to complete a cash forecast and why it is so important to an organization.
Ada Ramirez
(Consultant at Robert Half)
I liked how the course was laid out. It had very useful information presented in a logical manner. The instructor used real-world examples to make her point.
James Shelton
( at CPA)
Good content on managing the treasury function, giving guidance on both the principles and the execution of treasury management within an organization.
Anonymous
(VP of Finance and Accounting)
Solid overview of one of the most important topics in Finance. One of the most basic, but critical, tools for any business is the Cash Flow Forecast.
Scott Anderson
(Business Execution Director at Wells Fargfo)
minor... but the random use of acronyms in the slides was confusing. best to simply spell out what the speaker is referring (ST, LT, ML, etc)
Anonymous
(Accounting Manager)
The slide deck content is worthy to review frequently to help setup and provide a roadmap to establishing sound treasury management practices.
Christopher Hole
(Director of Internal Audit at Roseburg Forest Products)
This is a nice overview of the Treasury function. I appreciated the focus on ratio's commonly used to evaluate a company's cash performance.
Ross Connor
( at HVAC Incorporated)
I like the materials provided by the instructor. They were detailed and made it possible to read the material in order to get information.
Sheri Campbell
(Controller at Transcend the Gaap)
This was a fun course. I learned about monitoring our collection ratio. A collection ratio would seem to be a vital ratio at the moment.
Anonymous
(Controller)
This is a very thorough course - would be great to get a cash flow forecast excel tool since so much of the course was on CFF. Thanks
Anonymous
(Consultant)
Great outline of a very important role and function, especially in smaller companies where cash can be tight and needs to be managed.
Anonymous
(Financial Analyst)
Very interesting high level summary of what the Treasury department does. Great course to take if you want to learn the cliffnotes.
Derek Ettinger
( at GP Fund Solutions, LLC)
Great course on a topic that is not well-covered elsewhere. Highly suggested for anyone involved in running/supporting a company.
Anonymous
(Controller)
Compreshensive and yet an easy-to-digest course. Highly recommend for any professional working in or near the Treasury function
Anonymous
()
Very informative intro course to treasury. I didn't know treasury department is responsible for more things than just cash!
Anonymous
(Accounting Manager)
I really enjoyed this course - treasury functions in a small business like my own are imperative but sometimes overlooked
Anonymous
()
I deal with treasury departments on a regular basis so this is useful primer to understand their day to day operations.
Timothy Goodrich
(Vice President at BentallGreenOak)
This was a good crash course on cash / liquidity. I am looking forward to part two, so that I can take a deeper dive.
Nicole Gordon
( at D&D Ingredients, LLC)
I enjoyed learning about the role of the Treasury Function in a company and how they can interact with the Controller.
Shelby Raye
( at Nutrislice, Inc)
This was very helpful course as this function is often overlooked in small businesses. The material was interesting.
Anonymous
(CPA)
The course was informative, even though it was short. The material was laid out in a very organized, simple manner.
Anonymous
()
Enjoying this series. Lynn is a good presenter, and this is a good introduction to forecasting and cash management.
Anonymous
(Director, Accounting)
Great introduction to the Treasury Function detailing cash forecast, capital monitoring, and investing and banking.
Anonymous
()
Good overview of the needs of a treasury function. Learned something new when it comes to consolidating accounts.
Anonymous
(Manager, Financial Shared Services)
The instructor seems well versed but the presentation style is not engaging. Too much just reading from slides.
Anonymous
(CFO)
This is a good refresher on treasury management, especially for those who haven't had to manage treasury before.
Frank Vulpi
( at BGO)
great overview of the treasury function and its responsibilties. an easy to follow course with great benefits!
Anonymous
(Accounting Leader)
Great course on Treasury functions. I liked the detail about cash forecasting and working capital monitoring.
Anonymous
()
Good overview of the treasury function. The presentation was easy to follow and I learned a bit from this.
Anonymous
()
informative classes, would be useful for anyone who just learn about the treasury function in the business
Anonymous
(Accountant)
Nice overview of the role of the treasury function particularly for someone not familiar with the role.
Anonymous
(CFO)
Course varied between beginner and intermediate, but overall, I thought it was a very worthwhile course.
Anonymous
()
The course felt a bit long, but overall appreciated the high level overview of the Treasury function.
Anonymous
(Controller)
Though I am not directly into cash flow analysis in my work, this lesson was an eye openiner for me.
Dane Fuhrman
(- at ---)
Overall a solid course on Treasury concepts. A good reminder on ratios and other related concepts.
Sean Flynn
(Accounting Manager at Rosemawr Management)
A good course on the treasury function and its importance as it relates to the Conrollership roll.
Kirk Valencia
(Business Administrator at Denver Church of Christ)
Lynn effectively explains from a high level view of all the major duties of the typical treasurer.
Hannah Niman
( at Live Nation Entertainment)
good information and clearly taught and concise, highly recommend and looking forward to part two
Mark Eason
( at BVUA)
I enjoyed this course very much. I have done various parts of this successfully in the past.
Jeff Spillane
( at Anslow Bryant Construction)
Good overview of Treasury functions. Helpful terminology review for communication purposes.
Anonymous
()
This class was well presented and it had a lot of great information and points to consider.
Anonymous
()
Very insightful information and clear description of function of the treasury department.
Anonymous
(Finance Manager)
Great refresher and will plan to take again. Learning plan was well developed and helpful.
Anonymous
(CPA)
just typing 50 characters to get credit for this CPE course. misdugfobsdkjcbosubvocbslvjbs
Anonymous
()
Nice review on cash and liquidity for businesses and the benefits of cash forecasting.
Anonymous
()
Excellent course. I enjoyed learning with Lynn. She is awesome. I love her. Five stars
Anonymous
(Consultant)
Not only is this important for a business but also for your personal cash management.
Colleen Windham
(CPA/Relationship Manager at Retirement Plan Solutions, Inc.)
Lynn did a great job with this course, I learned quite a few things about Treasury.
Anonymous
(Controller)
GOOD BASIC COURSE OUTLINING THE TREASURY FUNCTION.
I APPRECIATE MORE EXAMPLES
Anonymous
(Accountant)
This course on Illumeo was a good refresher of liquidity and cash forecsating
Anonymous
(CSR)
Great course. I learned a lot about the treasury function. Great instructor.
Anonymous
(Director of Finance)
This course provided a great overview of the importance of cash forecasting.
Anonymous
(Director)
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Claire Long
( at Texas Slots & Gaming)
This was a really good overview of the treasury function of a business.
Anonymous
()
Good information and presented well. Great refresher on information.
Anonymous
(Controller)
Good introduction to the investing segment of the treasury function.
Megan Fraser
(Advisor at Google)
Overall, I really enjoyed this course. Thank you for providing this!
Anonymous
(Finance Manager)
Nice overview of the Treasury function. I look forward to part II.
xin hu
(accountant at coupa)
The content is clear with great explanations from the instructor.
Kevin Rupp
( at Owens Corning)
Informative course covering the basics of the treasury function.
Anonymous
(Senior Accountant)
Easy to comprehend. Practical and relevant for all industries.
Robert de Notaristefani
( at PWP)
Good introduction to cash forecasting and key considerations.
Anonymous
(Accountant)
Great course, striaghtforward and concise, I would reccomend!
Eric Bade
( at Star Group)
Quick refresh of treasury functions for someone managing cash
Anonymous
(Accounts Payable)
This is a good Introduction to Treasury. goes over Risks
Anonymous
(Senior Accountant)
Really enjoyed the overview of this area, many thanks!
Anonymous
(CPA)
Great overview of treasury and cash flow forecasting.
Erin Kindall
( at Forterra)
Comprehensive broad overview of the Treasury Function.
Anonymous
()
Great course with excellent content. Easy to follow.
Anonymous
()
All apects of treasury were very clearly explained
Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
.
Lynn FountainCPA, CGMA, CRMA, MBA, cPIA, Consultant, Author, Trainer
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