Treasurer

Definition

A treasurer is a financial officer responsible for managing an organization's finances, including cash flow, investments, and risk management. They ensure the company has the funds needed for operations and growth while minimizing financial risks.

5 Must Know Facts For Your Next Test

1. Treasurers play a crucial role in capital budgeting and financing decisions.
2. They are responsible for maintaining relationships with banks and financial institutions.
3. Treasurers develop strategies to manage the company's liquidity effectively.
4. They work closely with managerial accountants to provide insights on financial planning and analysis.
5. Risk management, including currency risk and interest rate risk, is a key part of their responsibilities.

Review Questions

• What are the primary responsibilities of a treasurer in an organization?
• How does a treasurer contribute to capital budgeting and financing decisions?
• Why is risk management important in the role of a treasurer?

Related terms

Controller: Responsible for overseeing accounting functions and ensuring accurate financial reporting.

Cash Flow Management: The process of monitoring, analyzing, and optimizing net amount of cash receipts minus cash expenses.

Capital Budgeting:

The process of planning and managing a firm's long-term investments.