Treasurer, Why Board Members Look Forward to Your Part of the Agenda 0

Posted On April 12, 2022, by Admin

The treasury team’s role in a company has significantly changed since the 2008 financial crisis. Treasurers have taken a step further from managing working capital and assumed a lot more responsibility within the organization where they work. They’ve started working closely with the business’s senior management, taking on the strategic partner role.

Today’s article will define the role of a treasurer, explain treasurer duties in an organization, and discuss their contributions to solving management-level problems. This article applies equally to profit orientated businesses as well as Not For Profit associations or charities.


What’s the Role of a Treasurer?

A treasurer or a certified treasury professional is a finance expert that manages and oversees the finances and/or budgetary goals of a business or an organization. Treasurer’s responsibilities differ depending on the size of the company or organization.

Smaller organizations typically lack internal accounting support. So, treasurer tends to take on the duties of an accountant or the finance department. These responsibilities include bookkeeping, writing checks, preparing financial statements and reports, making bank deposits, and so forth.

Treasurer job description is a lot different in larger organizations. Here, their role is much more strategic in nature — they evaluate the company’s funding model, help the board develop financial literacy, and discuss financial strategies with its members. Essentially, treasurers ensure that the organization is financially viable and that its finances are managed effectively and strategically.


Treasurer’s Responsibilities in Detail

Treasurer’s role and responsibilities differ depending on the board’s organization and expectations. These duties typically include:

  • General financial supervision
  • Financial planning and budgeting
  • Financial reporting
  • Banking and bookkeeping
  • Fundraising, funding, and sales
  • Controlling stocks and fixed assets

However, one of the most important aspects of this job includes working with senior management. Treasurers help the board members understand the numbers, manage financial risks, and address incurring issues promptly. The goal is to boost the bottom line — that is, the company’s overall profits.

Developing Financial Literacy

Board members must be financially literate in order to understand and approve budgets and policies, review and monitor financial statements, analyze data, etc. Treasurers can help them by supplying a basic financial glossary.

You can make all the financial data more digestible by using strategies like traffic light dashboards. This strategy uses colours (red, yellow, and green) to highlight different areas in the report and show where the performance is or is not on track. It will provide directors with a better view of business setbacks and areas that require more attention.

You should use the videos, presentations, group exercises, role-plays, and other tools to help and educate board members. These training sessions should allocate enough time for discussions and questions and answers.

Providing Guidance

Supervising the financial department, overseeing budget updates, and creating financial reports also fall under treasurers’ responsibilities. They gather enough financial information to build strategies that will reduce costs and raise efficiency.

Therefore, the treasurer of an organization or a business also serves as a reference point for board members when it comes to:

  • Financial implications of proposals
  • Outline of the present financial status
  • Corroboration of legal requirements
  • Retrievement of the necessary documentation

You’ll provide advice and guidance to the board members and influence their decisions to plan and achieve the organization’s objectives effectively.


Managing Risks

In business, risks are defined as uncertainties that affect an organization’s objectives positively and negatively. Treasurers can increase and/or protect an organization’s or business’s value by analyzing and managing those risks.

Financial risks can result from several sources, including:

  • Liquidity— Liquidity risks represent concerns related to the funds that the business or organization needs in order to meet its payment obligations in due time. They are often considered the most important type of risk treasures have to manage.
  • Credit— Treasurers manage credit risks by assessing whether those issuing securities are credit-worthy. This way, treasurers make sure that the business or organization they work for has the necessary funds to manage other financial risks it faces.
  • Currency— Organizations and businesses can face several risks related to currency transactions. An example of this is a result of the conversion of a business’ or organization’s proceeds from foreign sales into home currency.
  • Commodity— The commodity price risk refers to the possibility that the prices of commodities may change and that such a change could cause serious financial loss.
  • Operations— Operational risks incur from a business’ inadequate or failed internal day-to-day operations, activities, and procedures or external events, like legal risks.

Treasurers work with the board to create a set of policies that outline the methods to manage the risks mentioned above. The treasury department and other authorized personnel receive responsibilities and powers regarding these policies.

If the solution in relation to financial risks is not clear, treasurers must come up with a plan by weighing its pros and cons in a given situation and consulting with relevant specialists. Data and scenario analysis are some of the tools treasurers will implement before recommending a solution.

Characteristics of a Good Treasurer

A good treasurer must possess the following qualities to provide an organization or business with the necessary financial accountability:

  • Knowledge and experience— A treasurer must possess knowledge in various areas to understand the finances of a particular business or organization and effectively present them to the board members.
  • Integrity— Treasurers have to be trustworthy, reliable, and able to deliver accurate and transparent financial data and advice.
  • Good communication skills— Treasurers must work closely with accounting and finance teams to communicate the organization’s or business’ current financial standing to the board of directors. They also have to establish a good rapport with the board members since many of their duties require consults and collaboration with the board.
  • Problem-solving skills— Treasurers need to analyze and predict the risks the organization or business will face, develop viable strategies to tackle potential problems, and make appropriate recommendations to the board.



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This blog is not meant to provide specific advice or opinions regarding the topic(s) discussed above. Should you have a question about your specific situation, please discuss it with your GBA advisor.

GBA LLP is a full-service accounting firm in the Greater Toronto Area, but we primarily service all of Ontario as well as the rest of Canada virtually, except Quebec. Our team of over 30, provides Audits and Reviews of financial statements, and Compilations of financial information, as well as corporate tax returns.  We provide specialized corporate tax and succession planning for small and medium businesses, in addition to general advisory services.

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