Once considered a branch of accounting, the treasurer position now belongs to his own professional field and has his own unique career path. Treasurers are the ultimate processors: they need to integrate as much information as possible and make smart decisions that affect the company’s bottom line.
Skills and qualifications
Treasurers are not just bookkeepers; they are financial decision makers with heavy responsibilities. They need to pay attention to the smaller details and have the foresight to solve the overall problem. They are both supervisors and consultants, especially when large amounts of investment funds are involved, they sometimes act as financial planners for the entire company.
Finance executives need to demonstrate many different abilities, such as investment management, organizational leadership, and technical accounting knowledge. This is a unique role, but modern large and medium-sized companies are inseparable from it.
Responsibilities and job description
Usually, the corporate treasurer is responsible for handling investments and investment-related risks. Some people are involved in all short- and long-term business planning, including mergers and acquisitions (M&A) activities.
Treasurer is a crucial position in the company, although it can be challenging at times. Corporate treasurers are responsible for identifying and managing risks and formulating policies, but they must also coordinate accountants and other experts to comply with these policies and reduce these risks.
Historically, modern finance executives have played a technical and analytical role in decision-making, which has become increasingly strategic. In the past, the treasurer may only grasp the pulse of key financial ratios, but today’s treasurer needs to understand macroeconomics, business methods, and risk aversion.
In larger companies, the treasurer works closely with the chief financial officer (CFO) and other key analysts. They may consult a lawyer or compliance officer. The treasurer may need to introduce the new policy to different levels of management. This means developing interpersonal skills and working with junior and senior employees.
Standard career path
The way to control the treasury begins with a bachelor’s degree. Even the most entry-level financial supervisor position requires a bachelor’s degree, and it is best to major in accounting, economics, finance, or business administration. Some colleges and universities participate in the Corporate Treasury Management (CTM) program.
From there, it is best to gain work experience in the financial sector. Those with a CTM background will automatically join the Association of Financial Professionals, which will bring special opportunities.Others can work in the public or private sectors in accounting, analysis or investment.
Some people may seek professional certifications, including Certified Financial Professional (CTP) and Chartered Financial Analyst (CFA) certifications. These are rarely necessary for a position, but they look good on a resume. Treasurers come from a wide range of backgrounds, and easily recognizable certifications like CTP should help those from atypical start points.of
The US Bureau of Labor Statistics (BLS) believes that future advancement opportunities in finance and accounting are most suitable for individuals with graduate degrees, especially MBA degrees.
Treasurers need a combination of technical expertise and management skills. Most people work in some kind of management capacity before taking on higher positions of treasurer, even if only as senior accountants or team leaders.
Avoid dead ends
Many finance executives hope to graduate to become executives (and executive compensation), especially finance directors or chief financial officers. Unfortunately, many professional financial experts find themselves placed in financial positions due to lack of social or managerial skills. If the company makes him feel uncomfortable in front of customers or shareholders, the treasurer may find that his ceiling is very low.
The managing director and chairman want to see cross-functional management experience, because top finance positions must oversee many different teams in many departments. Ambitious finance executives are best to focus on soft skills (including communication and leadership), just as they do for technical prowess.