Cash Manager vs Treasury Manager: Whats the Difference Between Them?

Atlar helps you understand your cash better and save hours every month by managing cash in a single platform that syncs with all your banks and ERP. You can track cash positions in real-time, analyze your cash flow over any time horizon, and create forecasts with accurate data using our user-friendly forecasting tools. To help your organization succeed, there needs to be a balance of both cash and treasury management. This helps to ensure you’re able to meet immediate needs while planning for the future.

Timeframe

• Good cash management ensures you always have the right amount of cash available to meet your obligations.
• Manage cash, make payments, and sync data to your ERP all on one single platform.
• The treasury function, or whoever performs that role within a company, is essentially an in-house financial advisor that seeks to position the business for the best possible future.
• Cash management and treasury management are often used interchangeably, but there are differences between them, and the scope of treasury management is much larger.
• Newer businesses with less predictable revenue and more cash flow volatility will naturally be focused on managing cash to ensure it can meet its obligations and keep its operations running.

Another treasury function is forecasting and planning where the company wants to be in the treasury and cash management next 12 months — and reporting those figures. Like many other areas of your company, forecasting and planning will develop more layers as you grow. A formal treasury department would also measure and manage the currency exposures that result from international foreign currency payments. This level of risk management is difficult to achieve with smaller teams and fewer resources. A company’s working capital is the result of its current assets minus liabilities. Working capital balances are an important part of cash flow management because they show the amount of assets a company has on hand to cover its liabilities.

Treasury Manager Example Responsibilities.

Consistency helps in maintaining financial discipline and reduces the risk of errors. Standardized policies ensure that all financial activities adhere to the same guidelines, making it easier to manage and audit financial operations. For instance, having a unified policy for cash reserves can help in maintaining an optimal balance between liquidity and investment. Atlar offers a better solution for modern finance and treasury teams, letting you unify your bank and ERP data, manage cash, create forecasts, and make payments – all in real time, all on one platform.

Better understand your business cash flow with Relay

As you grow, payroll becomes more predictable, so the cash management surrounding payroll sees increased stability. Occasionally, timing issues may arise due to the administration of commission payments or bonus payments. It encompasses activities such as monitoring cash balances, forecasting future cash needs, and having strategies to deploy surplus cash or obtain additional funds when necessary. A positive cash flow shows that your business’s liquid assets are growing, which can help you pay off debts, reinvest in the business, and more.

Debtbook Team

Our smart safes provide real-time visibility into data that helps your business make informed financial decisions, both for the short- and long-term. This can increase your company’s cash and treasury management, providing up-to-date cash flow information to enable accurate planning and risk management. It is helpful to regularly utilize your cash flow statement, as well as liquidity and solvency ratios (which reflect your ability to meet long-term financial obligations, like debt repayment), to spot issues.

It’s essential to have one that not only takes what your books say about payment terms but also gives real-time visibility into how such payments will flow in and out of your account. As with most things, it starts with good data, and reporting is a crucial aspect of my role. Ensuring we’re up to date with all of our transactions is critical to the management of those three key areas. A spend management tool, such as Airbase, excellently facilitates that real-time visibility and ensures transactions are synced on a timely basis. When I worked in a public company, we really focused on the areas of AP and spend management when looking at cash management. We would actively delay spending during some periods, or we would pull spend forward (pay prior to due date) in other periods to hit an ending cash target.

Larger companies with more complex financial operations – more banks and entities spread across multiple countries – are more likely to need additional treasury management strategies. Companies at this stage also typically have a greater exposure to financial risks, such as bookkeeping the threat of FX volatility due to holding large amounts of cash in multiple currencies. Once a company reaches this stage there is typically a dedicated treasury function in place to coordinate these activities. Developing a cash management strategy is the foundation of effective treasury and cash management. The strategy should also take into account the legal, tax, and accounting implications of the proposed solution. A sub-task of treasury management, cash management refers to ensuring that a business has enough cash on hand to meet its short-term obligations.

In the U.S. we can estimate U.S. payment flows but, internationally, there are different tax years, and payment timings can differ. Understanding those international distinctions Accounting for Churches is important in ensuring your subsidiaries have cash at the right time. Interested in seeing how Tesorio’s AI can help automate your A/R and Treasury operations? Understanding the difference can help you make better financial decisions for your company.

Streamlining Cash Flow with CashSimple®

However, to optimize cash use, you could consider cash pooling solutions, allowing surplus cash from one account to offset deficits in another, effectively minimizing idle cash and reducing borrowing costs. For example, if you’re a global SaaS company like Box with multiple subsidiaries, centralizing cash management activities can provide greater control over global cash positions and streamline operations. You could set up a shared service center for handling global transactions to optimize efficiency.