Functions of Treasure

Functions of Treasure

Treasure is responsible for the management of funds. The detailed functions of treasurer are ²².

• Financial Planning

a)      Reporting financial results to the officers of the company

b)      Planning the company’s investment programme.

c)       Planning borrowing requirements.

d)      Forecasting cash receipts and disbursements.

e)      Advice on dividend policy.

• Cash Management

a)      Opening account and depositing funds in banks.

b)      Management of petty cash and bank balance.

c)       Payment of company’s obligations through proper disbursement procedure.

d)      Maintaining records of cash transactions.

• Credit Management

a)      Determination of customer’s credit risk.

b)      Orderly handing of collection.

c)       Handing cash discounts and terms of Sale for prompt payment.

• Security Function

a)      Recommendation type of security most desirable for company.

b)      Negotiation with investment bankers.

c)       Provision for trustee, registration of transfer agent.

d)      Compliance with Government regulations.

e)      Retirement of debenture and preferred stock.

f)       Shareholder relations, disbursement of dividend etc.

g)      Signing of cheques , lease, share and debenture certificates, deeds etc.