Rob MacNeil: 7 Experts on Activating Liquidity

Treasury plays different roles in different organizations, but many companies, particularly global organizations and those with complex funding requirements, have found value in making treasury a more strategic player in cash and liquidity management. In looking more closely at what treasury has to offer, it’s apparent that its value goes beyond just greater operational efficiencies.

 

 

“Making yourself more liquid increases value to the
extent that you’re able to meet future obligations, make
investments and grow.”

Having a total view of all aspects of cash and risk is critical, and actively managing liquidity increases enterprise value. Even for companies that are not publicly traded, if you take a step back and think of it as the value of the enterprise, making yourself more liquid increases value to the extent that you’re able to meet future obligations, make investments and grow. It’s critical, and it requires close management daily.
To gain that view, treasury must work closely with accounts payable to manage payments. It must manage cash and finance working capital. Treasury must touch everything that has any effect on cash. If it’s coming in the door, treasury needs to see it. If it’s going out the door, treasury needs to
see that, too. If it’s financial risk, treasury needs to manage it. Treasury must be involved in planning for all these things. When it is, treasury increases the value of the enterprise as a whole.

This is an excerpt from 7 Experts on Activating Liquidity. The eBook was generously sponsored by Kyriba.