Corporate Treasury Functions Fundamentals

Corporate treasury functions include cash management, investment and debt management, financial risk management and investor relations. This is a catchall description, not n authoritative definition, and there is considerable overlap in these classifications. Treasury functions also deal with complex financial areas, such as foreign exchange rates, derivatives and interest rate swaps, among other things. Treasury functions also might differ between, say, a manufacturing firm and a bank.

Cash Management

Cash management deals with liquidity management, payments and collections, and electronic banking, which are complementary areas. Liquidity management involves forecasting short-term and long-term fund requirements, arranging for financing, investing surpluses and maintaining a proper balance between assets and liabilities. The objective is to provide the required cash at minimum cost. Electronic banking, electronic lockboxes and electronic bank statements all are used to optimize liquidity. To forecast cash requirements, a detailed analysis of payments and collections also needs to be undertaken. As such, payments and collections are integral to liquidity management.

Illustrative problems in liquidity management are summarized below:

    Bank account management - A large corporation can have a number of bank accounts spread across the globe. In this case, even obtaining a bank balance may take days.
    Bank reconciliations - Bank accounts need to be reconciled with the cash account to get a handle on cash transactions.
    Payment and collections processing - The schedule of payments and collections should be available for understanding future cash in and outflows. For multinational corporations, such data has to be collected from subsidiaries and consolidated for analysis.
    Cash forecasts - These include forecasts for subsidiaries and different units, and need to be consolidated into a central forecast. Time periods, such as short-term vs long-term, need to be specified. Cash forecasting models need to be developed and vetted. These different forecasts can come in different file formats, and currency adjustments may be required. Also, cash flows may have to be appropriately classified; for example, committed, uncommitted, budgeted or financial.
    Global problems - Managing cash across various countries can pose problems, such as regulatory considerations, taxes, regional banking standards for minimum cash and vehicles available for investments and financing.


Investment and Debt Management

Investment and debt management deals with investments in marketable securities, issuance debt and security instruments, and sale and redemption of these instruments. These activities require access to stock market information, money markets, fixed-income securities markets, foreign exchange rates and derivatives. The treasurer also needs a view of market positions, ability to track, check and complete transactions, and back-end connections to the accounting system. Accounting standards such as Financial Accounting Standard (FAS) 133, FAS 138 and IAS 39, which provide authoritative guidance for measurement and valuation of transactions in these areas, need to be supported by accounting and treasury systems.


Financial Risk Management

Risk management involves assessing liquidity, credit, interest rate, currency and stock market risks. Liquidity risk is the risk that the corporation will not be able to meet its short-term or long-term commitments. Assessing this risk is part of liquidity management.

Treasury policy often specifies applicable credit rating criteria for third parties while investing in cash assets or making derivative contracts. Credit risk deals with the creditworthiness of business partners and, in the case of international transactions, may also include analysis of country risks. Interest rate risk deals with changes in the interest rate and interest margins and the consequent effects on financing costs, returns on investments and valuations of investments or debt. These changes need to be monitored and appropriate corrective actions need to be taken to minimize the risk. Currency risk is a risk that an organization’s operations or an investment’s value will be affected by changes in currency exchange rates. Currency risks are important for companies that derive revenues from other countries, since adverse changes in currency values can affect the bottom line. Currency and interest rate risks can be managed using different on- or off-balances sheet hedging strategies such as forwards, futures, swaps and trading strategies, among other things. Stock market risk is the risk that the market value will fluctuate and the portfolio of stocks held by the corporation will decline in value.

 Investor Relationship

Treasury functions may also include dealing with current and prospective investors and providing them with relevant and reliable information.

 Web-Based Tools and Technologies for Treasury Functions

These treasury functions have changed due to Web-based tools and technologies. The pace of change is uneven; several years ago e-treasury or virtual treasury was projected to be a fait accompli for corporations. The penetration of Web-based tools has been slow; however, promised functionalities have begun to appear in most ERP packages. Independent vendors also are providing services such as electronic banking and trading market software. There is a profusion of software in this area, and most of the ERP vendors offer Web-based functionalities to a varying degree. To understand these functionalities, a Web-based treasury tool, eTreasury, and SAP CFM module.

The software that manages the treasury functions, especially debt/investment and risk management, must deal with different activities — trading, back-office record keeping and accounting. Trading activities involve buying and selling of debt and security instruments. For risk management purposes, treasury often uses financial instruments such as options, futures, swaps and derivatives. As such, the trading activities involve evaluating offers, contracts, order, confirmation of orders and settlements of transactions. This front end must have access to debt, security and foreign exchange markets, and should receive information in real time. Back-office record-keeping activities involve completing the paperwork or electronic document work for purchases and sales of financial instruments, tracking various contracts, and maintaining historical and current data for all transactions. The accounting function includes recording all financial transactions in accordance with the GAAP, particularly FAS 133 and 138 in the U.S. and IAS 39 for countries following the IAS.

Advantages of Inventory Reconciliation Management

Inventory management refers to the procedure of organization the stocks of finished products and supplies by a compact. Inventory management, if done accurately, can transport down expenses and increase the profits of a compact.

Not a substance what the business size it must administer many fixed assets, types of assets, quickly changing asset bases, many locations, and ever-changing tax laws and requirements. Fixed asset inventory software can also reduce encumber of fixed asset reduction calculations for financial and tax exposure, asset inventory tracking and reconciliation services, and private property tax filings.

Inventory management software has an amplified business on the web, following the importunate increase and achievement of e-commerce. Inventory management software helps administer inventory from any location in the world. Inventory management software is perfect for business. Inventory management software correspondences are designed for inventory control. The software makes easy the making of an account, and inventory control, stock balance management, goods item direction. Our Accounting Services, a company leader in this area of specialty, can provide to the demanding supplies of global customers in Inventory management.

Inventory management software solution packages:

    QuickBooks
    Peachtree
    Sage Line 50
    Quicken
    MYOB
    IRIS
    La Certe
    Pro Tax

Inventory software can create the assignment of fixed asset managing easier from achievement through removal. Software such as this eliminates superfluous data entry, enhances accurateness, and reduces costs over handbook tracking of fixed assets. There is inventory software accessible from the essential system of normal bar codes to the more complicated long range asset management. Some business offer inventory software on the internet. As well there are businesses for appoint that will approach. Using complicated devices for gathering of data, our inventory management team captures asset attributes professionally at the point of entry. This ensures benefit information in detail, and accurateness.

Accounting - A.A.S.

Accountants help to ensure that the nation's firms run more efficiently, its public records kept more accurately, and its taxes paid properly and on time. They perform these vital functions by offering an increasingly wide array of business and accounting services to their clients.

Beyond the fundamental tasks of the occupation-preparing, analyzing, and verifying financial documents in order to provide information to clients, many accountants now are required to possess a wide range of knowledge and skills.

Accountants are used by virtually all organizations, including private business and industry, public accounting agencies, governmental bodies, tax preparation firms and financial management firms.

Students in this Major:

    Learn accounting theory, financial, managerial and cost accounting systems.
    Learn how accountants track, report, and interpret activity in a manner to allow for appropriate decisions by business, government, education, and individuals.
    Students have the opportunity to receive IRS approved training, to be certified in preparing taxes, and to volunteer through the only Volunteer Income Tax Assistance (VITA) site in St. Lawrence County.

Career Opportunities:

    Private business and industry
    Public accounting agencies
    Governmental accounting positions
    Tax preparation
    Financial management

Career Outlook:

    According to the Bureau of Labor Statistics, the changing role of accountants and auditors will spur job growth.

Typical Jobs Upon Graduation:

    Associate Accountant
    Claims Agent
    Project Manager
    Credit Analyst
    Loan Specialist
    Revenue Administration
    Tax Preparer
    Business Manager

Employers of SUNY Canton Graduates:

    Lowe’s
    St. Lawrence County
    Pinto, Mucenski & Watson PC
    United Helpers
    Home Depot
    Claxton-Hepburn Medical Center
    C. Rowe Accounting & Tax Preparation
    North Country Savings Bank
    Jacobs Manufacturing
    SeaCom Credit Union
    Burlington Vermont School District Business Office

Transfer Opportunities:

    Clarkson University
    SUNY Canton, SUNY Albany, SUNY IT, SUNY Oswego, SUNY Plattsburgh, SUNY Potsdam, SUNY IT
    Siena College
    LeMoyne College
    Rochester Institute of Technology
    Syracuse University
    University of Vermont

Students wishing to transfer into a four-year program should consult their transfer school of choice prior to transfer.

Robert Grinaker Professor, Director of the Institute for Diversity and Cross-Cultural Management

Ph.D., The Pennsylvania State University, 1980, Accounting. Professor George Gamble's teaching areas are governmental accounting, accounting theory, and managerial accounting. Research interests include financial accounting theory and citation analysis. Prior to joining the faculty at the University of Houston in 1980, Dr. Gamble served as an internal auditor for the Tennessee Valley Authority and also worked for Arthur Andersen & Company and Coopers and Lybrand. His publications have appeared in the Journal of Accounting, Auditing and Finance, The Accounting Historians journal, Journal of Accounting Education and Spectrum, among others.
Research Interests

    Financial Accounting Theory
    Citation Analysis

Publications

    Gamble, George, Cynthia Tollerson, Mary Geddie, and Thomas Noland. “An Analysis and Comparison of Bankers’ Perceptions of Stock Options in 1999 and 2005.” Academy of Banking Studies Journal. [October 2007]

MANAGEMENT ACCOUNTING SERVICES

Management accounting addresses these common business questions. It is at the intersection of accounting and management, and is where basic accounting ends and analysis, interpretation and decision making begins. These services can be added onto the basic accounting package, at an hourly rate, or on a per job basis. Management accounting services can be used on a stand-alone basis or to enhance the standard package to fit your specific needs.

Management accounting services are designed to: 

 Add an extra dimension to your accounting and financial control
Direct attention to problem areas
Measure performance
Quantify the relative merits of alternative courses of action, allowing for better and more informed business decisions, such as choosing between competing investments, in an environment of capital constraint.
Provide a more in-depth understanding of costs and revenues
Improve productivity and efficiency through organization and systematic processes

Once you have a formal accounting system in place, you are in a position to utilize its data to provide information necessary to run your business. However, it is almost critical to have an objective for your business and to monitor the actual performance, in light of achieving your set goals and objectives. You may choose from the following services to help achieve your company’s objective:

Business Planning, Budgeting & Forecasting

Business Plans
Operating Budgets
Cash Budgets
Capital Budgeting
Capital Budgeting & Acceptance of Projects
Investment in R&D & Acceptance of Projects
Mergers, Acquisitions and Buying Businesses

Financial Analysis, Performance Monitoring 

• Performance Monitoring
  • Financial
  • Operating
• Financial and Variance Analysis
• Breakeven Analysis, Cost Variability and Structure
• Throughput Analysis for Capacity Constraint
• Profitability Analysis for Services
• Balanced Scorecard
• Dashboards

Decision Support

• Employee and Payroll Decisions
• Outsourcing
• Capital, Labor Mix and Productivity
• Pricing Decisions
• Quality Decisions
• New Products and Services 

Working Capital Management

• Cash
• Accounts Receivable
• Credit & Collections
• Inventory
• Accounts Payable
• Other assets and liabilities

Fixed Asset Management & Investment Decisions

• Lease & rent vs buy
• Outsourcing
• Partnerships
• Centralization 

OTHER SERVICES

Managerial Finance

The objective of managerial finance is to provide the funds necessary to keep the business running efficiently; cash is the raw material consumed in the running of business and small businesses need to avoid an interruption in funds.

In this case, The Right Answer can assist you with:

• Working Capital
  
  
• Banking Relations and Bank Loans
  
  
• Financial Structure – Debt vs Equity
  
  
• Capital Leases
  
  
• Cost of Capital

Services

The Right Answer is about managing and making rational and informed operational and investment decisions. Emphasis is on information and the analysis required for managing, controlling and financing operations. It is about increasing profits, improving cash flow, maximizing return on investment and as a result increasing the value of the business consistent with the businesses’ ability to effectively manage change, with consideration for how owners and managers understand the business. It is about arriving at the right answer.

As a result, The Right Answer is principally about management accounting and managerial finance organized into a system. The Right Answer leaves other accounting functions to specialists more productive in their field, such as income tax preparation, forensic accounting, small business valuation and multi-jurisdictional payroll accounting. However, The Right Answer has access to pre-qualified specialists as a result of previous interactions. You may make use of them or continue to use those with whom you already have a professional relation and are comfortable with, such as income tax preparation. The Right Answer integrates with professionals you already use.

The Right Answer is expressly designed to make sophisticated, best practices available to small businesses but the principals on which The Right Answer is based are proven and applicable to businesses of all sizes. Therefore, services are broken into two categories:

CFO/Controller or Managed Financial Function

For small businesses up to $10 million in revenue an outsourced CFO or controller may be the right answer. Accounting and corporate managerial finance requires experienced, professional management. Listed below under services you will find many of the issues that the small business CFO or Controller must be aware of, manage, and do as part of the team responsible for the success of the business. The Right Answer will provide professional management of accounting and finance for your organization either on a fixed price or dollar per hour basis, on an as needed basis.

This allows small business owner to eliminate the need to manage or maintain a staff in a function for which he or she has no prior skill or experience and outsource your accounting and finance function. The Right Answer can provide a turnkey solution to the need for accounting and finance staff or manage your current staff. Eliminate the need to have multiple contacts for accounting and finance, by having one contact, and allow The Right Answer to deal with your various providers of accounting and financial services. This may be the right answer for your small business.

Consultative 

The Right Answer provides financial management for smaller businesses and as a function of performing the controller or CFO function routinely manages and performs tasks listed under basic accounting, managerial accounting, and finance. However, if you have a larger business with a financial manager or bookkeeper already in place, but need assistance in certain areas of managerial accounting and finance for a specific project, such as a business plan or are desirous of establishing a performance monitoring system, The Right Answer can assist you. The Right Answer will consult with you on a specific area requiring attention or perform the work on a limited engagement. You may pick and choose from our menu of services listed below.

BASIC ACCOUNTING 

Transaction Accounting (Bookkeeping) 

The accounting system is the principal formal means of gathering data that aids and coordinates the process of making rational, informed decisions. This, in turn, assists in accomplishing the overall goals and objectives of an organization.

We begin the process with a managed accounting system. More than bookkeeping, it’s an accurate, managed and organized accrual or cash accounting system, which not only records transactions and performs financial functions, but also provides timely financial data for internal and external users.

Our system ensures that your financial information is available in a format required by state creditors, lenders, and customers, and reduces your tax preparation costs.

Our monthly fee is based on the size and complexity of the business and on the number of transactions, or hourly fee. Included in the basic package are the following services:

1. Set-Up
   • System, including schedule
   • Chart of accounts, customized to your business
   • Software Standard Reports, customized to your business
     
     
2. Invoicing and Accounts Receivable
   • Invoice customers
   • Receive payments
   • Sales receipts
   • Maintaining customer account balances
     
     
3. Vendor Payment and Accounts Payable
   • Entering and paying bills
   • Maintaining vendor accounts balances
     
     
4. Payroll Processing
   • Preparation and payment
   • Tax filings:
     • Federal
     • State and local filings
       
       
5. Cash Accounting
   • Deposit cash (at the bank or remotely)
   • Post cash transactions
   • Control
   • Bank reconciliations
     
     
6. Taxes
   • Sales and revenue
   • Franchise
   • Property
     
     
7. Fixed Asset Accounting
• Record fixed assets
  
  
8. Financial Accounting & Period End Close
• Trial balance review, review of all accounts
• Monthly closing entries, such as depreciation and loans
• Financial statements – Balance Sheet, Income Statement, Statement of Cash Flows

ADD-ONS TO BASIC ACCOUNTING

1. Accounting Manual, including internal controls
   
   
2. Cost and Inventory Accounting
   
   Almost all businesses require some degree of cost accounting but for manufacturing and construction it is an integral part of the accounting system. By implementing a cost accounting system, it will allow you to collect unit and project costs on a regular basis.

Accounting Firm in Singapore

Profile of Principal Consultants - Joe Tan & Associates - Auditing and Accounting Firm

Mr. Joe Tan (CPA,MPA, BA(NUS)) is a member of the CPA Australia as well as Institute of Certified Public Accountants of Singapore. He holds a Master of Practising Accounting from the Monash University. Mr. Tan has more than 12 years of accounting and financial analysis experiences while working at Multi-National Companies as well as Public Listed Companies in Singapore.

Mr. Tan Kee Seng (FAIA ATTS) is a fellow of Association of International Accountants. He has been in practice for more than 30 years specialising in accounting and tax matters. He is also a Chartered Company Secretary.