The definition of Treasury is “a place in which treasure is kept.” It can also be a place where treasure is hidden. In the case of the corporate treasury department, that hidden treasurer is profit. To uncover that treasure, you need an experienced treasure hunter; the professional Treasury Consultant.
In today's challenging economy, a dollar saved in a company's treasury function is no less important than a dollar earned from revenue. Moreover, treasury savings are sometimes more expedient.
Many CFO’s may not have the expertise, or the time, to identify all of the potential savings that can be generated by sound cash management. In either event, finance executives should consider hiring outside cash management consultants to help enhance their bottom line. An outside consultant may be quite advantageous in a situation where the treasury department is impaired by inefficiencies due to a lack of expertise or simply understaffed.
If your company’s cash management operation has not been reviewed for awhile, your treasury staff is inexperienced, you lack the budget to add full-time staff, your business has outgrown your current treasury department or you don’t have a bona fide treasury department, you should seriously consider engaging a treasury management consultant. The consultant will be able to focus on the most efficient system to administer your company’s cash.
Once you have identified the need and made the decision to hire a treasury consultant, you need to interview several consultants to determine what services they offer and how they can best meet your needs. During the interview process you should ask the candidates how they would structure your treasury operation. The consultant should be able to exhibit a successful track-record of engagements in implementing and/or streamlining the following operations:
• Accounts Receivable (Collections)
• Accounts Payable
• Daily Cash Positioning and Forecasting
• Banking Services & Products
• Lockbox Facilities
• Automated clearinghouse and electronic data interchange.
The consultant should explain how they would streamline these activities, automate where feasible, improve work flows and procedures and address the cost of banking services to achieve the best service for the best price. They should also be able to illustrate how they have been able to uncover problem areas and recommend practical solutions, At this point, you should be able to determine the scope of the consultant’s involvement and how effectively they will interact with senior executives and other key personnel. Though important, don’t get preoccupied with price. The expert consultant will be able to uncover savings far exceeding their fee. Accordingly, they know what they are worth and expect to be compensated accordingly.
Once you have narrowed your search down to 3 to 5 finalists, send to them a Request for Proposal (RFP) outlining the scope of the project. Their proposal should include the plan, methodology, timetable, fees and references. The RFP must have a deadline for responding with the proposal. Once the proposals are received, you must do your due diligence by calling each reference to determine the consultant’s quality of work, knowledge, interaction with different levels of management, cost benefit, whether the project was completed on time and whether the consultant would be retained again. You may now select the best consultant and begin the project
Cash management consultants are able to provide significant bottom line savings. Many companies fail to provide the required resources to their treasury department due to time restraints, budgetary priorities or a misunderstanding as to the importance of the treasury function. As interest rates rise and inefficiencies coalesce, inadequate cash flow due to inexperienced management of your treasury function becomes more and more expensive
In today's challenging economy, a dollar saved in a company's treasury function is no less important than a dollar earned from revenue. Moreover, treasury savings are sometimes more expedient.
Many CFO’s may not have the expertise, or the time, to identify all of the potential savings that can be generated by sound cash management. In either event, finance executives should consider hiring outside cash management consultants to help enhance their bottom line. An outside consultant may be quite advantageous in a situation where the treasury department is impaired by inefficiencies due to a lack of expertise or simply understaffed.
If your company’s cash management operation has not been reviewed for awhile, your treasury staff is inexperienced, you lack the budget to add full-time staff, your business has outgrown your current treasury department or you don’t have a bona fide treasury department, you should seriously consider engaging a treasury management consultant. The consultant will be able to focus on the most efficient system to administer your company’s cash.
Once you have identified the need and made the decision to hire a treasury consultant, you need to interview several consultants to determine what services they offer and how they can best meet your needs. During the interview process you should ask the candidates how they would structure your treasury operation. The consultant should be able to exhibit a successful track-record of engagements in implementing and/or streamlining the following operations:
• Accounts Receivable (Collections)
• Accounts Payable
• Daily Cash Positioning and Forecasting
• Banking Services & Products
• Lockbox Facilities
• Automated clearinghouse and electronic data interchange.
The consultant should explain how they would streamline these activities, automate where feasible, improve work flows and procedures and address the cost of banking services to achieve the best service for the best price. They should also be able to illustrate how they have been able to uncover problem areas and recommend practical solutions, At this point, you should be able to determine the scope of the consultant’s involvement and how effectively they will interact with senior executives and other key personnel. Though important, don’t get preoccupied with price. The expert consultant will be able to uncover savings far exceeding their fee. Accordingly, they know what they are worth and expect to be compensated accordingly.
Once you have narrowed your search down to 3 to 5 finalists, send to them a Request for Proposal (RFP) outlining the scope of the project. Their proposal should include the plan, methodology, timetable, fees and references. The RFP must have a deadline for responding with the proposal. Once the proposals are received, you must do your due diligence by calling each reference to determine the consultant’s quality of work, knowledge, interaction with different levels of management, cost benefit, whether the project was completed on time and whether the consultant would be retained again. You may now select the best consultant and begin the project
Cash management consultants are able to provide significant bottom line savings. Many companies fail to provide the required resources to their treasury department due to time restraints, budgetary priorities or a misunderstanding as to the importance of the treasury function. As interest rates rise and inefficiencies coalesce, inadequate cash flow due to inexperienced management of your treasury function becomes more and more expensive
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