Treasury Is Becoming More Strategic And More Tactical Too
- Tracking financial data in real time allows you to see cash and value trends, more effectively manage foreign exchange and risk, and develop more accurate forecasts.
- One way to measure treasury’s success is to see a rise in return on assets (ROA—income divided by assets) as a result of better treasury management.
“You can actually see in real time your exposure in Thailand, in China, in England. CFOs love that.”
JoseLuis Vilchis believes modern treasury management tools are at the heart of the department’s evolution within the enterprise. “We’ve come from being just expensive cashiers to being the guardians of the company assets,” he says. Today’s treasury is involved in everything from opening a bank account to strategizing on mergers and acquisitions, and anything else that impacts corporate value. That can include tax and legal questions as well as matters that are more in the realm of cash management, such as foreign exchange and hedging. “We are becoming more and more strategic,” Vilchis explains, “and more tactical too.”