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Friday, May 20, 2005

Not The Same Old Treasurer's Job (From CFO magazine)

The corporate treasurer's job used to be simple and fairly straightforward. The controllers counted the money, and the treasurers made sure the firm had money to count. They dealt largely with short-term, working-capital issues.

This article from CFO magazine's online site, titled "Treasuring the Treasurer" lays out some of the ways the treasurer's job has changed. The job now often includes:
  • Spending more time with operational units to understand how treasury ops can support the company's profit centers (i.e. making sure financiang structure matches up with operational needs);
  • More involvement in designing and implementing hedging strategies to mitigate foreign exchnage risk;
  • Working with marekting and sales to structure payment options for customers
  • Working in concert with the investor relations department (after all, they already work with credit analysts, so talking to analysts on the ewquity side is a natural extension).

In summary, the job is a lot more comprehensive and varied than in years past. Nowadays, the treasurer is much, much closer to the CEO. It's worth a read, and suitable for class use.

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