Treasury Policies and Procedures

Treasury policies and procedures are a set of guidelines and protocols that govern an organization’s treasury function. These policies and procedures are designed to ensure that the treasury function operates efficiently, effectively, and in compliance with applicable laws, regulations, and best practices.

Some of the key areas covered by treasury policies and procedures include:

Cash management: Treasury policies and procedures should outline how cash is managed, including how it is collected, stored, and disbursed. This may include guidelines for managing bank accounts, maintaining cash reserves, and monitoring cash flows.

Investment management: Treasury policies and procedures should also cover investment management, including guidelines for selecting investment vehicles, implementing investment strategies, and managing investment risks.

Risk management: Treasury policies and procedures should also address risk management, including guidelines for identifying and assessing various types of financial risks, and developing and implementing risk mitigation strategies.

Financial reporting: Treasury policies and procedures should also cover financial reporting, including guidelines for preparing financial statements, maintaining accurate records, and complying with applicable accounting standards and financial reporting requirements.

Compliance: Treasury policies and procedures should also address compliance with applicable laws, regulations, and industry best practices, including guidelines for managing tax liabilities, complying with anti-money laundering regulations, and managing relationships with financial institutions.

Overall, effective treasury policies and procedures are critical to the success of an organization’s treasury function. By providing clear guidelines for managing cash, investments, risks, and compliance, these policies and procedures help to ensure that the treasury function operates efficiently and effectively, while also minimizing the risk of financial losses and regulatory violations.

Working Capital Policy and Procedure

The Working Capital Policy and Procedure describes methods to properly manage the working capital invested to operate the business in areas such as Accounts Receivable, Accounts Payable, and Inventory. This Procedure minimizes working capital while meeting all operational needs. It applies to Finance, Accounting, Sales, and Operations departments.