Treasury remains one of the most misunderstood yet essential functions in any business. From ensuring liquidity to managing financial risks, treasurers play a pivotal role in navigating companies through uncertain waters. However, over the years, I’ve encountered several myths and misconceptions about treasury—ideas that limit its perceived value or oversimplify its complexity.
Let’s explore The 12 Myths of Treasury and set the record straight.
Treasurers are often seen as mere cash managers, limited to handling payments and ensuring liquidity. Some organizations treat treasurers as the “cashiers” of the company, while there are even CFOs reserving tasks like debt negotiations with banks – the perceived “glamorous” side of treasury – for themselves. Treasury goes far beyond cash management. It’s a strategic function that safeguards financial stability, manages risk, and drives growth through proactive planning and collaboration. Treasurers are not just managing the present they’re shaping the future of the business.
Treasurers are often viewed as isolated from the broader business, focusing solely on numbers and financial transactions. Many believe that understanding the company’s operations, strategy, or market dynamics isn’t essential for their role.
Treasurers must deeply understand the business to manage liquidity, risks, and funding effectively. Their role requires a comprehensive view of the company’s operations and strategic goals to make informed decisions and align financial strategies with business needs.
From my own experience, I’ve seen how critical this understanding is. The more we understand the business and communicate within the organization with all the business units, the more we can add strategic depth to our role and provide solutions.
I recall a case where a CIO was exploring a Treasury Management Systems (TMS) without involving treasury in the process. The lack of collaboration could have led to a solution that didn’t meet the company’s actual needs, emphasizing the importance of treasury being part of key business decisions.
I’ve often collaborated internally with teams like procurement, logistics and HR. I remember instances when they brought issues to my office, and together, we worked on solutions that balanced financial strategy and operational needs. These moments underline the value of treasury’s deep involvement in the business.
On the other hand, knowing the business and being able to guide through site visit banks or external stakeholders, have made my feel great satisfaction whilst showcasing the operations firsthand. This helps them not only understand our business better but also strengthens our relationship and credibility.
Treasurers are not just “number people.” They are business partners who bring financial expertise into the operational, strategic, and external landscapes of a company.
Treasury and Accounting are often seen as interchangeable roles within finance. Treasurers are assumed to perform tasks like bank transactions and account reconciliations or interest accounting entries, leading to the belief that their work and responsibilities are identical to those of accountants. Some even argue that Treasury should report to Accounting or even that salaries should be equivalent, perpetuating the misunderstanding.
Treasurers are not Accountants. Their role requires a different skill set, a broader understanding of financial markets, and a strategic mindset. Recognizing this distinction is key to unlocking treasury’s full potential.
While Treasury and Accounting share common ground, they serve distinct purposes. Accounting is backward-looking, focused on recording and reporting historical financial information. Treasury, on the other hand, is forward-looking, focused on managing liquidity, mitigating risks, and aligning financial strategies with the company’s long-term goals.
Separating these two functions is essential for compliance and governance. For example, if Treasury manages payments and also reconciles bank accounts, there’s no independent oversight, increasing the risk of errors or fraud. By keeping these functions separate, companies create a system of checks and balances that enhances transparency and accountability.
Another reason for separation lies in the different areas of expertise. Treasury for instance focuses on forecasting and securing funding to maintain liquidity, while Accounting ensures accurate reporting and compliance with financial regulations. Each department’s specialization allows them to complement each other effectively without overlap. At the end, the true success lies in fostering strong collaboration between these departments to achieve aligned financial goals.
Treasurers are often perceived as solely managing relationships with banks—handling loans, deposits, and payment systems. This narrow view overlooks the broad scope of their responsibilities and the diverse stakeholders they collaborate with to ensure the company’s financial stability.
While banking relationships are an important part of Treasury, they’re far from the only focus. Treasurers also work with suppliers, customers, rating agencies, auditors, and even internal teams like procurement to manage liquidity and financial risks.
For example, for working capital management, treasurers collaborate with supply chain and procurement teams to optimize payment terms with suppliers and ensure cash flow aligns with operational needs. Similarly, they may work with rating agencies to improve the company’s credit profile, directly impacting borrowing costs and access to funding. Other cases as well are with technology providers for treasury automation as treasurers are increasingly involved in selecting and implementing TMS and automation tools.
Treasury’s role extends beyond transactional banking to becoming a strategic partner that bridges the internal and external financial landscape, aligning liquidity, risk, and funding strategies with broader business goals.
Treasurers don’t just “work with banks”—they work across the organization and with external stakeholders to drive value and financial resilience.
With the rapid rise of automation, APIs, and AI-powered tools, some believe that technology will eventually replace the need for treasurers altogether. This view assumes that treasury tasks are primarily transactional and can be fully automated.
Technology is not a replacement for treasurers but an enabler of their work. While automation tools like APIs, RPAs, and TMS systems streamline processes and reduce manual work, they do not replace the strategic judgment, risk management expertise, and forward-thinking that treasurers bring to the table.
For example,
These tools free up treasurers’ time to focus on higher-value activities like liquidity planning, funding strategies, and risk mitigation. Technology supports their role but does not replace their expertise and judgment.
Treasury is often viewed as a cost center, with its activities seen as transactional or administrative. Some believe that treasury doesn’t contribute directly to the company’s bottom line or long-term success.
Treasury is a cornerstone of business success. From ensuring liquidity to managing risks, treasurers play a vital role in keeping the company financially stable and strategically agile. Their work often enables the entire organization to grow and adapt, especially during turbulent times.
From my own career, I’ve seen treasury lead the way during moments of crisis. During the liquidity crunch and capital controls in Greece, treasury took center stage in guiding operations and navigating the business through uncharted waters.
In another case, when liquidity was scarce, treasury implemented new processes for payments, engaging the whole organization to be partners and successfully pass the milestone.
Working close with credit insurance companies, an invisible partner to each company’s cash flow management, to ensure appropriate credit limits for the supplier is another example as well.
Treasury’s role extends even further during M&A periods. Having participated in a couple of M&A transactions, I’ve seen firsthand how the knowledge treasury has of the business makes us an integral part of the due diligence process, the financing of the deal aas well as the following day . By working closely with cross-functional teams, treasury helps secure the best possible outcomes for the organization.
Treasury’s contributions don’t stop at crisis management or even at treasury related projects. By introducing automation to enhance visibility, such as expense and invoice management systems, treasury has driven efficiency and improved decision-making across the organization—well beyond its traditional scope. Treasurers don’t just add value; they create it by driving resilience, growth, and innovation.
Treasurers are often seen as technical specialists who focus purely on numbers, systems, and processes. This view assumes that leadership isn’t necessary for their role since they are perceived as operating in the background, removed from decision-making or team management.
Treasurers are not just number crunchers—they are leaders. Whether it’s managing teams, influencing stakeholders, or guiding the organization through financial crises, strong leadership skills are essential to success in treasury.
Treasurers are increasingly recognized as strategic leaders. There is an increasing trend of treasurers being invited to participate in executive committees, advisory boards or even hold board positions, reflecting their influence and ability to navigate complex challenges.
Interestingly, there’s a misconception about what leadership means in treasury (and not only). I’ve encountered situations in interviews, where the focus was solely on how many people I had in my team. Explaining that how leadership in treasury often involves cross-functional efforts and influencing stakeholders across departments –rather than simply managing a large team– was not always easily understood. True leadership in treasury lies in the ability to align diverse functions and drive strategic outcomes, not just in the number of direct reports.
In times of crisis, treasury leadership becomes even more apparent.
During liquidity crunches, treasurers lead efforts to stabilize cash flow, negotiate with banks, suppliers, and customers, and implement innovative solutions like real-time cash flow forecasting tools. By fostering collaboration across teams and maintaining clear communication with stakeholders, treasury ensures financial resilience and continuity. Leadership is about more than giving directions—it’s about inspiring trust, making tough decisions, and ensuring the entire organization feels confident in its financial future. Without strong leadership, treasury’s strategic potential cannot be fully realized.
There’s a belief that treasury is a function reserved for large corporations with complex financial structures and significant cash flows. Smaller businesses or organizations with simple structures—such as single-entity operations—often assume their treasury needs are minimal or non-existent. Statements like, “Our company doesn’t have a group of entities, so our treasury function is simple and easy,” are common misconceptions.
Additionally, some finance directors in businesses exceeding €100 million in revenue believe treasury isn’t necessary because they view their responsibilities as limited to cash collection, payments, and managing loans. What they often fail to recognize is that adding a treasurer not only enhances financial optimization but also frees up their time to focus on more strategic aspects of the business.
Treasury is essential in businesses of all sizes and structures. While the complexity of operations may differ, the principles of managing liquidity, optimizing cash flow, and mitigating financial risks are universal. There’s no revenue threshold or number of entities in a group that dictates the necessity of a treasury function—it’s about ensuring the financial health and efficiency of the organization.
For example, in smaller companies, treasurers may focus on managing liquidity to ensure operational stability, negotiating funding with banks, or implementing tools for cash flow forecasting. Even in a straightforward business model, treasury brings expertise that can uncover efficiencies, improve cost structures, and mitigate risks that might otherwise be overlooked.
From my own experience, I’ve seen treasury play a pivotal role in medium-sized companies, implementing strategies that not only stabilized cash flow but also supported growth and innovation. The misconception that treasury is irrelevant in smaller or simpler organizations often leads to missed opportunities for financial resilience and optimization. Treasury isn’t about the size of the company; it’s about the importance of managing its financial health strategically and efficiently—no matter the scale or complexity.
There’s a common perception that FX hedging is risky, speculative, and akin to gambling. Some believe it’s about taking chances on currency fluctuations rather than strategically managing financial risks.
FX hedging is far from gambling—it’s a calculated risk management strategy. By mitigating exposure to currency fluctuations, treasurers protect the company’s cash flows, profitability, and overall financial health. It’s about predictability and stability, not speculation.
I recall once, when presenting internally the hedging of an foreign currency, an executive telling me, “If you knew where exchange rates would move, you wouldn’t be working for a company—you’d be a freelancer making millions from speculation.” The reality is, treasurers are risk-averse by nature, and hedging is about safeguarding the business, not betting on markets.
For example, hedging an investment/CAPEX with predetermined payment schedules, we protect cash flows by ensuring the company is not exposed to unexpected rate changes.
Treasurers are risk averse but the truth is that we usually we don’t proceed with 100% hedging. Even hedging partially, say 50%, can provide better accuracy in cash flow forecasting while allowing flexibility for market conditions. It depends upon the risk appetite of the company, and the risk policies in place.
Another challenge that I’ve faced, is addressing the perception that hedging is expensive. It’s important to note that hedging is most effective when markets are stable — delaying action until volatility strikes, such as say waiting for the Russian ruble to devalue before considering a hedge, is both costly and in many cases too late. Treasurers must be proactive to avoid compounding risks. The problem though is that only when the problem arises, treasury is heard. FX hedging is not about speculation; it’s about preparation. By implementing thoughtful strategies, treasurers enable the business to navigate global markets confidently and focus on growth without fear of financial surprises.
Treasury is often perceived as being focused solely on day-to-day operational tasks like payments, cash management, or bank reconciliations. This view reduces treasury to a transactional function rather than a strategic one, tied to the company’s long-term goals.
Treasury plays a critical role in shaping a company’s long-term financial stability and strategic direction. While day-to-day operations are part of treasury’s responsibilities, the true value lies in long-term planning, risk management, and supporting the company’s broader strategic objectives.
I’ve seen treasury lead initiatives that go beyond the transactional. Whether it’s designing a multi-year funding strategy to support growth, navigating complex M&A financing structures, or collaborating with other departments to align financial planning with corporate goals, treasury often acts as the backbone of a company’s financial future.
For example, when treasurers are structuring and managing long term bond loans (5-7 years tenors) or setting up project financing that can reach a tenor of 15 years, treasury should ensure sustainable cash flows over the life of the loan or project financing and align with capital repayment schedules to avoid liquidity constraints. Thus it is of high significance for both the treasurer and the business to be an integral participant during the setting up of the organization’s business plans.
Additionally, treasury is integral to M&A transactions and investment plans, working on long-term funding strategies, aligning liquidity needs with the company’s growth ambitions and at the end assisting further in the smooth integration of the newly acquired company. These responsibilities require detailed forecasting, risk mitigation, and alignment with corporate strategies to maintain financial health. Treasury is not just about short-term operations; it’s about creating long-term value and ensuring the organization thrives in an ever-changing financial landscape.
There’s a dangerous assumption that liquidity is something businesses can always access when required, whether through cash reserves, credit lines, or financing options. This belief overlooks the complexities and challenges involved in maintaining liquidity, especially during periods of economic uncertainty or market volatility.
Liquidity is not guaranteed—it requires careful planning, proactive management, and constant vigilance. Treasurers play a critical role in ensuring that liquidity is not only available but also accessible at the right time and in the right place, particularly in large group structures. It’s not uncommon for a group to have sufficient liquidity overall but find it locked in a subsidiary where transferring it isn’t feasible, or where the most effective method, such as a dividend payment, isn’t applicable. Managing these complexities requires foresight and coordination.
Treasurers must also contend with the reality that funding availability can be inconsistent. Financial institutions often seem to act like offering umbrellas on sunny days –providing credit during stable periods- but withdrawing support when the clouds gather. I recall a specific instance during the Greek liquidity crisis when foreign banks began exiting the market and demanded repayment of overdraft facilities within days. Fortunately, we had proactively secured sufficient credit lines with local Greek financial institutions, allowing us to navigate this challenge without disrupting operations.
From my own experience, relying on external funding or credit lines without a robust liquidity management plan can backfire. Proactively building cash buffers, diversifying funding sources, and maintaining strong banking relationships are essential strategies to ensure stability during turbulent times.
Treasurers also prepare for unexpected events by implementing cash flow forecasting models, managing intercompany funding arrangements, and ensuring alignment with business needs. Effective liquidity management isn’t just about having cash—it’s about ensuring it’s accessible when and where it’s needed most. Liquidity isn’t always available—it’s built through foresight, strategic planning, and a comprehensive understanding of business needs and constraints.
There’s a common belief that treasury is simply an extension of finance, and any finance professional—be it an accountant, controller, or finance director—can seamlessly manage treasury functions. This myth diminishes the specialized skills, expertise, and strategic mindset that treasury demands.
Treasury is a distinct and highly specialized discipline. While it intersects with other financial roles, treasury requires a unique combination of technical expertise and soft skills that sets it apart from other finance functions.
Treasurers must possess exceptional communication skills, as they often act as a bridge between internal teams and external stakeholders like banks, investors, and rating agencies. They need problem-solving abilities to untangle complex financial puzzles, and out-of-the-box thinking to devise creative solutions in high-pressure situations. Organizational skills are critical to managing multiple priorities, from liquidity planning to risk management, while maintaining a clear focus on the company’s strategic objectives.
One skill that stands out is the ability to say “no” firmly, but constructively. Treasurers often face requests or ideas that could compromise the company’s financial health, and it’s their responsibility to push back—but always with well-considered alternatives that align with the company’s goals.
From my own experience, I’ve seen cases where finance professionals underestimated the complexity of treasury. They excelled in areas like accounting or controlling but lacked the market knowledge, adaptability, and strategic mindset required for treasury’s dynamic challenges. Treasury is not just a function; it’s a strategic pillar that requires dedicated focus, unique skills, and the ability to thrive in uncertainty. As we step into 2025, let’s acknowledge treasury for the unique, specialized discipline it is and celebrate the professionals who master its complexities and drive business resilience and success.
The role of treasury is ever-evolving, and these myths only scratch the surface of its potential. By challenging these misconceptions, we can elevate treasury’s profile and showcase its importance in building resilient, growth-oriented businesses.
What’s the biggest misconception you’ve encountered about treasury? Share your experiences and let’s continue the conversation. Together, we can reshape how treasury is perceived and ensure its value is recognized.
Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.
This article is written by Monkey
Cash flow management is critical for business success. Whether you’re a startup or an established company, implementing effective cash flow strategies can mean the difference between thriving and barely surviving in today’s competitive market.
This guide explores proven techniques to improve cash flow, recognize warning signs of cash problems, and build a stronger financial foundation for sustainable growth.
Cash flow refers to the net amount of cash moving in and out of your business over a specific period. Understanding the difference between positive and negative cash flow is essential:
Positive Cash Flow: More money coming in than going out – your business can cover expenses and invest in growth.
Negative Cash Flow: Outflows exceed inflows – putting your business at risk of financial difficulties.
Important: Cash flow isn’t the same as profit. While profit reflects earnings after expenses, cash flow measures liquidity – how much actual money you have available to operate your business.
Healthy cash flow management allows your business to:
Recognize these red flags before they become critical issues:
If you’re experiencing any of these symptoms, it’s time to implement cash flow improvement strategies immediately.
Faster collections = better cash flow. Optimize your AR with these tactics:
Invoice Immediately: Send invoices the same day you deliver goods or services. Set Clear Payment Terms: Use specific terms like “net-30” or “2/10 net-30”
Offer Early Payment Discounts: 2% discount for payments within 10 days. Implement AR Factoring: Convert receivables to immediate cash (80-95% of invoice value). Automate Follow-ups: Use software to send payment reminders automatically
While collecting payments quickly, extend your own payment deadlines when possible:
Proactive cash flow management requires regular monitoring and forecasting:
Review operating costs and eliminate waste without compromising quality:
Immediate Actions:
Ongoing Reviews:
Excess inventory ties up valuable cash. Implement these inventory optimization strategies: Just-in-Time (JIT) Ordering: Order stock as needed to minimize excess. ABC Analysis: Focus on managing high-value items more closely
Inventory Turnover Tracking: Monitor how quickly inventory sells. Seasonal Adjustments: Reduce slow-moving inventory before peak seasons
If cash flow issues stem from low profit margins, consider strategic price adjustments:
Create a financial safety net for unexpected expenses or opportunities:
Target: 3-6 months of operating expenses in reserve. Strategy: Allocate 5-10% of monthly revenue to cash reserves. Investment: Keep reserves in high-yield savings or money market accounts. Access: Ensure funds are readily available when needed
Partner with financial institutions to offer early payment options to suppliers while maintaining extended payment terms for your business.
Use excess cash strategically by taking supplier discounts when cash flow is strong and skipping them when cash is tight.
Access multiple financing options including factoring, asset-based lending, and invoice financing to optimize cash flow timing.
Track these key metrics to monitor improvement:
Operating Cash Flow Ratio: Operating cash flow ÷ Current liabilities. Cash Flow Coverage Ratio: Operating cash flow ÷ Total debt payments. Free Cash Flow: Operating cash flow – Capital expenditures Days Cash on Hand: Cash and equivalents ÷ Daily operating expenses
Mistake 1: Focusing Only on Profit
Solution: Monitor both profitability and cash flow separately – they’re different metrics
Mistake 2: Inadequate Forecasting
Solution: Create rolling 13-week cash flow forecasts updated weekly
Mistake 3: Poor Customer Credit Policies
Solution: Implement credit checks and clear payment terms from the start
Mistake 4: Seasonal Planning Failures
Solution: Plan for seasonal fluctuations and build cash reserves during peak periods
Effective cash flow management isn’t just about balancing the books – it’s about creating a solid foundation for business growth and sustainability.
Start today by:
Remember: Small improvements in cash flow timing can have dramatic impacts on your business’s financial health and growth potential.
Ready to transform your cash flow management? The combination of strategic processes, technology solutions, and proactive planning will give you the financial control needed to grow your business confidently.
Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. Click below to register and connect with Treasury professionals worldwide
From Treasury Masterminds
Based on a Treasury Masterminds webinar featuring Bojan BelejkovskI, Board Member at Treasury Masterminds, and Charles Brough, VP Global Head of Account Management at SAP Taulia. Moderated by Patrick Kunz.
Recordings on Spotify and YouTube:
Working capital is one of those topics that every company talks about, but few companies truly own.
It sounds simple enough. Improve receivables. Optimise payables. Reduce trapped cash. Create more visibility. Free up liquidity.
In practice, it is rarely that clean.
Working capital does not sit neatly inside one department. Treasury sees the cash impact, procurement negotiates supplier terms, sales agrees customer terms, finance manages the accounting, operations influences execution. Everyone touches it, yet ownership is often unclear.
That was one of the key themes in our Treasury Masterminds webinar, “Unlocking Liquidity: Flexible Working Capital Strategies”, with Bojan Belejkovski, Treasury Masterminds board member, and Charles Smith from SAP Taulia.
As Patrick said during the session:
“There is no working capital department and there will never be a working capital department. Collaboration is the key.”
That may sound obvious, but it is often exactly where working capital initiatives fail.
Treasury is usually close to the numbers. It sees the cash flow forecast, the bank balances, the liquidity gaps, the funding needs and the impact of payment behaviour.
Bojan described treasury’s role very clearly:
“Treasury owns the measurement and the consequence of working capital, even when it doesn’t own the levers themselves.”
That is the uncomfortable truth.
Treasury can see that DSO is moving in the wrong direction. It can see when supplier terms create liquidity pressure. It can see when cash is trapped in entities or countries. It can also see when the forecast does not match reality.
But treasury does not always control the decisions that create the problem.
Sales may agree to extended payment terms to close a deal. Procurement may negotiate supplier terms without considering the full cash impact. Business units may sit on cash locally. By the time treasury is involved, the decision has often already been made.
Bojan put it even sharper:
“Treasury is often the last function to find out and the first one to be asked to fix something.”
Many treasurers will recognise that sentence immediately.
Visibility Comes First
Before companies can improve working capital, they need to understand where liquidity is stuck.
Charles made that point early in the discussion:
“If you don’t have visibility, you can’t actually take any action, and you can’t improve from where you are today.”
This is where many organisations still struggle.
They may have data in ERP systems, TMS platforms, spreadsheets, bank portals and local reports. The information exists, but it is fragmented. By the time it is collected, cleaned and discussed, the opportunity may already have moved.
That lack of visibility makes it difficult to answer basic questions.
Without answers to those questions, working capital management becomes guesswork. And guesswork is not a strategy, even if someone puts it in PowerPoint.
One of the most interesting parts of the webinar was the discussion about receivables.
When asked where he would focus first, Bojan did not hesitate.
“If I can fix one tomorrow, it’s going to be receivables.”
His reason was simple. Receivables are often under-owned.
Sales is focused on revenue. Credit is focused on risk. Finance is focused on accounting. Treasury is focused on cash. All of them have a role, but that does not automatically create ownership.
Or as Bojan said:
“Everyone touches receivables. No one owns it.”
That is a big issue.
A company can have a strong sales performance and still struggle with cash collection. It can have good revenue growth while liquidity gets stuck in overdue invoices. It can have a strong pipeline, while treasury is forced to deal with the cash gap.
Receivables are also messy. Customer behaviour changes. Billing data is not always clean. Collection processes are not always consistent. Commercial teams do not always want to have uncomfortable conversations with customers.
That is why receivables deserve more attention from treasury.
Not because treasury should suddenly become the collections department, nobody needs that tragedy, but because treasury can help quantify the cash impact, highlight the risk and bring the right teams together.
Supply chain finance was another important topic in the discussion.
It is sometimes presented as a simple liquidity tool. Extend payment terms, offer suppliers early payment, unlock cash. Done.
Reality is more nuanced.
Charles explained it well:
“The primary value of supply chain finance is as a negotiation tool.”
That is an important distinction.
A good supply chain finance programme is not just about creating liquidity for the buyer. It can also support suppliers by giving them access to financing at better rates than they could achieve on their own.
For the buyer, it creates flexibility. For the supplier, it can reduce cash flow pressure. For procurement, it becomes part of the broader supplier relationship.
That also means success depends on adoption.
Charles made another practical point:
“It’s not just about the rate. The supplier experience matters just as much.”
If the programme is difficult to use, suppliers will not adopt it. If procurement is not involved, it will not scale. If treasury builds the programme in isolation, it risks becoming a nice technical solution that nobody actually uses.
Bojan was clear on this as well:
“The programs that scale are the ones where procurement and treasury are genuinely aligned on day one.”
That is probably one of the most practical lessons for any company considering supply chain finance.
Do not start with the technology.
Start with alignment.
Working capital cannot be managed properly if treasury only joins at the end of the process.
Bojan captured this perfectly:
“You can’t drive strategy from the end of the process.”
If customer terms are agreed without treasury input, the cash impact becomes treasury’s problem later. If supplier terms are negotiated without considering liquidity, treasury has to manage the consequences. If local entities hold excess cash without group visibility, treasury has to work around the structure.
The companies that do this better involve treasury earlier.
Bojan explained:
“The companies where treasury drives working capital have given treasury a seat early and with a mandate.”
That mandate matters.
Treasury should not be there just to report the outcome. It should help the business understand the cash effect of decisions before those decisions are made. This does not mean treasury needs to own sales, procurement or operations. It does mean treasury should be part of the conversation when payment terms, financing structures and liquidity trade-offs are discussed.
Naturally, AI came up during the webinar. It always does now. Mention treasury technology in 2026 and AI enters the room like it owns the building.
But the discussion was refreshingly practical.
AI is not the first step.
As Patrick said during the session:
“AI is not step one. It’s often step three or four.”
Before AI can add real value, companies need visibility, automation and clean data. If the underlying data is poor, the output will be poor as well. AI does not magically fix broken processes. It just makes bad data look more confident.
Charles described the role of technology around three themes: visibility, scalability and automation.
Automation removes manual work. It makes receivables finance more scalable. It supports reconciliation. It helps treasury teams manage more with fewer resources.
Only after that foundation is in place does AI become truly useful.
Charles summarised the right mindset clearly:
“People direct. AI executes.”
That is the point.
AI should help treasury professionals gather information faster, analyse patterns and support better decisions. It should not replace judgment.
For small treasury teams, this can be powerful. Less time spent collecting data. More time spent using it.
Towards the end of the webinar, we discussed a more provocative question.
Are working capital programmes real liquidity improvements, or are they sometimes just balance sheet cosmetics?
The honest answer is: both can happen.
Some programmes are used around reporting dates to improve metrics temporarily. That may look good on paper, but it does not necessarily improve the underlying business.
Bojan was clear about that risk:
“Cosmetics are real, but they shouldn’t be the reason why you did the program.”
A well-run working capital programme should create repeatable value. It should improve liquidity, reduce funding pressure, strengthen supplier or customer relationships and give the company more flexibility.
Charles brought the discussion back to one key metric: the internal cost of cash.
If a company understands its true cost of cash, it can make better decisions about early payment discounts, supplier financing, receivables finance and liquidity trade-offs.
That is when working capital moves from cosmetic reporting to real value creation.
Working capital is not just a treasury topic: It is a business topic.
Treasury may see the problem first, but it cannot solve it alone. The real value comes when treasury, procurement, sales, finance and operations work from the same playbook.
That requires visibility.
It requires shared ownership.
It requires technology that supports the process.
And most importantly, it requires treasury to be involved before the problem lands in the cash forecast.
Working capital is often described as hidden liquidity. That is true. But in many companies, the liquidity is not just hidden in receivables, payables or trapped cash.
It is hidden between departments.
Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.
This article is written by TreasuryCube
From back-office function to strategic powerhouse: How modern treasury departments are reshaping corporate finance
Corporate treasury has undergone a remarkable metamorphosis. Once relegated to the shadows of financial management—handling cash, monitoring liquidity, and mitigating basic risks—treasury has emerged as a critical strategic partner driving organizational success. This evolution isn’t merely an upgrade; it’s a complete reimagining of what treasury can and should deliver.
Today’s treasurers sit at the nexus of strategic decision-making, armed with real-time insights, predictive capabilities, and technological prowess that was unimaginable just a decade ago. As CFOs face mounting pressure to deliver value beyond traditional finance functions, treasurers have stepped up to become indispensable strategic advisors.
Organizations hesitating to modernize their treasury functions face existential risks in today’s volatile business landscape:
As one Fortune 500 treasurer recently noted: “Our transformation journey wasn’t optional. It was either evolve or become obsolete.”
The marriage of digital technologies with treasury operations has created unprecedented efficiencies. AI and ML algorithms now predict cash positions with remarkable accuracy, while RPA has eliminated manual processes that once consumed thousands of labor hours annually.
Consider the impact: One global manufacturer reduced payment processing time by 87% through intelligent automation, freeing their treasury team to focus on strategic initiatives that generated over $12M in additional working capital.
Treasury transformation has been significantly advanced by innovative TMS providers like TreasuryCube. As a comprehensive corporate treasury management software, TreasuryCube helps companies manage their cash, liquidity, risk, and investments with exceptional efficiency. Built on the latest .NET framework and utilizing web assembly technology, this SaaS platform offers:
The explosion of financial data has transformed treasurers from backward-looking reporters to forward-thinking strategists. Advanced predictive models now forecast cash positions with precision while identifying anomalies that might signal fraud or operational issues.
Real-time dashboards have replaced monthly reports, enabling treasurers to:
TreasuryCube exemplifies this trend with its comprehensive reporting and analytics capabilities, including customizable dashboards and automated report generation that enable companies to monitor financial performance, identify trends, and make data-driven decisions.
As regulatory frameworks grow increasingly complex—from Basel III to IFRS 9 to expanding ESG mandates—treasurers have evolved sophisticated compliance capabilities. Treasury transformation has enabled organizations to navigate this complexity with remarkable precision.
Modern treasury management systems like TreasuryCube ensure adherence to internal and external regulatory requirements, such as anti-money laundering (AML) and know-your-customer (KYC) guidelines, while incorporating robust security measures to protect sensitive financial data.
ESG considerations have moved from peripheral concerns to central treasury priorities. Forward-thinking treasurers are now:
The migration to cloud-based treasury management systems represents more than a technology shift—it’s a fundamental reimagining of how treasury functions operate. TreasuryCube embodies this evolution as a genuine multi-tenant Software-as-a-Service platform that offers:
As a cloud-native solution, TreasuryCube eliminates the need for extensive implementation timelines with highly configurable workflows and prebuilt master data upload capabilities, reducing consulting and implementation hours significantly.
The API revolution has unleashed unprecedented connectivity between treasury systems, banking partners, and third-party platforms. TreasuryCube leverages this technology with custom connections to both internal and external data sources, ensuring that no matter which solutions or services a company utilizes, their data is always available for visualization, analysis, and reporting.
This connectivity enables:
As treasury operations digitalize, cybersecurity has evolved from IT concern to treasury imperative. Leading treasury management systems like TreasuryCube utilize enterprise-grade security measures, including:
Innovative treasurers have transformed working capital management from a financial necessity to a competitive advantage. TreasuryCube enhances this capability by optimizing receivables, payables, and inventory management through:
The relationship between corporate treasury and FinTech has evolved from competitive to collaborative. TreasuryCube exemplifies this trend by delivering specialized financial software development services that create secure and reliable IT ecosystems for treasury departments.
This approach enables treasurers to:
Perhaps most significantly, the profile of treasury professionals has fundamentally changed. Today’s high-performing treasury teams blend:
TreasuryCube supports this evolution by providing intuitive, user-friendly interfaces that are built on modern technology frameworks, enabling treasury professionals to focus on strategic activities rather than manual processes.
The trajectory is clear: tomorrow’s treasury function will serve as the strategic command center for organizational financial performance. With solutions like TreasuryCube leading the way, we can expect:
As TreasuryCube’s approach demonstrates, this evolution is not just about technological advancement—it’s about empowering financial decisions with real-time insights and seamless automation that drives business value.
Corporate treasury transformation represents more than modernization—it signifies the transcendence of traditional financial boundaries. The treasury function is evolving from a processing center to a value creator, from a risk mitigator to an opportunity enabler, from a cost center to a strategic advantage.
Advanced treasury management systems like TreasuryCube are at the forefront of this evolution, providing the technological foundation that enables treasurers to deliver strategic impact. With features ranging from cash flow positioning and forecasting to intercompany netting and seamless accounting integration, these systems are redefining how treasury departments operate.
Organizations that embrace this transformation journey position themselves not just for financial efficiency but for market leadership. In a business environment characterized by volatility and disruption, a transformed treasury function—supported by innovative technology solutions—becomes the financial north star, guiding the organization through uncertainty with clarity, confidence, and strategic purpose.
The question is no longer whether treasury transformation is necessary, but whether your organization will lead or follow in the race to reimagine what treasury can achieve.
Treasury Masterminds is a community of professionals working in treasury management and those interested in learning more about topics such as cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information.
