How to Start a Career in Treasury

Guest article from the UK:

Treasury managers love solving problems and making decisions. Moreover, they have that important task of ensuring an organisation’s cash flows and financial risks are properly managed and optimised. Their main priority is to ensure that their company has enough cash to manage the daily operations, whilst also following a long-term strategy. If you are interested in embarking on a career in treasury, here is an overview of what your job will entail.

Who are treasurers?

As a treasurer, you will be responsible for your organisation’s ability to pay its expenses and investments. In addition, you will assess and manage the company’s financial risks and help it develop its business strategies and policies.

All organisations have treasury positions and although not all of these roles will have the label ‘treasurer’ in the job title, the job function will usually be the same. For example, you will perform the same role and offer similar services whether you are working in the entertainment industry or construction. Furthermore, once you have acquired the appropriate skills, you will be able to apply them to any company around the world.

People suited to this type of work

If you are fascinated by the financial markets and are a keen problem-solver, you will fit right in with treasury work. This job will also excite people who love making things happen whilst expressing their views in order to influence others. To succeed in this line of work, you will need the following qualities:

• Love working with numbers
• Ability to learn and develop skills
• Strategic thinker and planner (a problem-solver or a big picture thinker)
• Desire to assume a vital role within the company
• Excellent attention to detail
• Self-motivated, driven and willing to take on challenges
• Excellent communicator and relationship builder
• Confident in dealing with a variety of people
• Prudent in terms of financial risk but confident in handling company finances

What does the role typically involve?

Now you have a general idea about what a treasurer does, here are some examples of their work in action:

• Your organisation wants to set up a new manufacturing plant which will generate much-needed revenue and provide a competitive edge. As the treasurer, you need to balance the risks and check whether the pros outweigh the cons. Once your projection shows a positive advantage, you can then start creating and applying a financial strategy for the new facility.
• Organisations are interested in changing interest rates, foreign exchange rates and financial regulations because of their significant impact. Your role? Follow these market trends and determine their positive or negative effect on your company. You may have to develop strategies to offset any potential financial difficulties for your company.

The skills you will require

Behavioural – As a professional, you will need to be:

• Responsible
• Persuasive and influential
• A team player

Examples:

• You must be able to convince your co-workers to support your ideas or actions that could help increase the company’s profit.
• You should be comfortable working with people from various departments to ensure that projects receive the necessary funding.

Business skills – You need to work and deal with various stakeholders to meet your company’s treasury objectives.

Examples:

• You should confidently communicate your ideas to your superiors, co-workers, investors and other stakeholders.
• You are the primary contact person when dealing with banks, credit companies, investment analysts, consultants and regulators.
• Gather, analyse and convert financial data into understandable information required for the problem-solving or decision-making processes

Technical skills – You need the know-how to develop and implement your company’s strategies and objectives.

Examples:

• Ensure your company has sufficient funds for its expenses, including its short-term and long-term objectives, by wisely managing the cash flow and liquidity.
• Handle any surplus cash, borrowing requirements and the company’s investment activities.
• Assist your company’s leaders by identifying, assessing and managing any financial risks in their plans.
• Raise money and proposed funding solutions for new company projects or obligations.
• Raise capital and evaluate any risks or opportunities arising from mergers and acquisitions.
• Check market trends, such as rising interest rates or foreign exchange rates, and assess whether there will be any positive or negative impacts on the company.
• Ensure that your company’s financial and treasury activities conform with the latest accounting and tax regulations.
• Decide what economic strategies and plans to implement to achieve your company’s

Career opportunities

If you wish to pursue a treasury career or progress into the role after previously working in a similar position, there are a wide range of excellent recruitment opportunities at the moment. Many organisations are looking to fill their entry-level positions, including:

• Multinational companies
• Charity or non-profit-oriented organisations
• Government agencies
• Start-up companies

Often, an entry-level position can lead to a senior role in the company and even international offers. Also, you should consider becoming a recognised Association of Corporate Treasurers (ACT) member as membership will give you an edge over your competition. Here are just some of the roles and job titles associated with treasury professionals:

• Treasury analysts, dealers and accountants
• Risk or cash managers
• Credit and financial risk analysts
• Treasury heads for operations or tax directors
• Relationship managers or transaction services analysts
• Finance directors or financial controllers
• Managing directors or company secretaries
• Non-executive directors
• Chief financial officers (CFOs)

Find companies that hire treasury professionals

If you are interested in a treasury career, consider reaching out to Stellar Select as this financial services recruitment agency will help match your qualifications with a treasury employer who will value your specific expertise.

How to move up in your career

You can move up the career ladder through Continuing Professional Development (CPD) education. If you are just commencing a treasury career, CPD can help you improve your technical knowledge and skills, and enable you to develop important behavioural and business capabilities.

Earning potential

How much you earn will depend on various factors such as your company’s size, location and the nature of its business. Your role and experience level can also affect your pay scale. In addition, professional qualifications like the ACT can increase your earning potential and promotion options. Besides the basic salary, companies may offer specific bonuses and benefits.

Conclusion

If you relish challenges and enjoy making big decisions, a treasury career could be the perfect fit for you. As you will have the weight of responsibility that comes with handling a company’s finances, the job demands an ability to work under pressure. Your social skills with regard to persuading and influencing people will also be called into play. Positions tend to be well remunerated in line with the duties and responsibilities, while career advancement will depend on your skills, experience and professional qualifications.

Author’s bio

Lauren Walker is the administrator for Stellar Select, a financial services recruitment agency.