Instructor for this course

Cash is the lifeblood of all businesses. Without liquidity, businesses wither and die. The mission of the treasury department is to manage the liquidity of a business. This means all current/projected cash inflows/outflows must be monitored to ensure there is sufficient cash to fund company operations, as well as to ensure excess cash is properly invested. To do this, the function must ensure that existing assets are safeguarded through the use of safe and reliable forms of investment and hedging activities.

Treasurers list their most important tasks as:

  • Enhance liquidity risk
  • Optimize working capital (WC)
  • Improve cash flow (CF) forecasting and visibility of cash
  • Improve cash conversion cycle (CCC)
  • Optimize inventory levels

Activities related to Cash include:

  • Cash forecasting. Compile information to create an ongoing cash forecast. Information may come from the accounting records, the budget, capital budget, board minutes (dividend payments) and for expenditures related to acquisitions and divestitures.
  • Working Capital monitoring. Review corporate policies related to WC and model their impact on cash flows.
  • Cash Concentration. Create a system for funneling cash into a centralized investment account to facilitate the effective investment of cash.

Activities related to investing are broad and include:

  • Investments. The corporate investment policy is used for allocating excess cash to various investments, depending on their ROR and how quickly they can be converted into cash.
  • Grant credit. Issue credit to customers, which involves management of the policy under which credit terms are granted.
  • Compliance. Ensuring the organization is in compliance with various laws and regulations.
  • Fund raising. Determine when additional cash is needed, and raise funds through the acquisition of debt, sale of stock, or changes in company policies that impact the amount of working capital required to run the business.
  • Risk management. Use various hedging and netting strategies to reduce risk related to changes in asset values, interest rates, and foreign currency holdings.
  • Credit rating agency relations. Communication with rating agencies of the company's financial results and condition.
  • Bank relations. Keep the company's bankers apprised of the company's financial condition/projections, and potential changes in need for borrowed funds.

This segment focuses on each of these roles and the sub-components involved.

Note: This course is also a part of The Controllership Series.

Learning Objectives

  • Discover and outline typical Treasury activities.
  • Explore cash forecasting.
    • Examine how to prepare a cash forecast.
    • Examine WC and monitoring.
    • Understand cash concentration.
  • Explore investments and banking.
Last updated/reviewed: June 17, 2021

Included In Certifications

This course is included in the following Certification Programs:

17 CoursesThe Controllership Series Certification

  1. The Controllership Series: The Controller Function - Elevating the Role
  2. The Controllership Series: The Controller Function - Strategic and Annual Planning
  3. GAAP Principles, Assumptions and Considerations
  4. The Treasury Function Part 1: Cash, Liquidity and Investments
  5. The Controllership Series: The Controller Function - Cash and Investments
  6. ASC 842 Accounting for Leases - Deep Dive
  7. Revenue Recognition (ASC Topic 606) Standard Overview
  8. The Controllership Series: The Controller Function - Inventory Part 1
  9. The Controllership Series: The Controller Function - Inventory Part 2 - Inventory Valuation, Physical Inventory Methods and Inventory fraud
  10. The Controllership Series: Overhead, Direct and Indirect Costs and Allocation Methods
  11. The Controllership Series: Financial Statement Preparation and Presentation
  12. Analyzing Financial Ratios - Leverage
  13. Analyzing Financial Ratios - Performance And Efficiency
  14. Analyzing Financial Ratios - Solvency, Liquidity and Debt
  15. The Controllership Series: The Financial Close Process
  16. The Controllership Series: Managerial Accounting Basics and Cost Principles
  17. Tools for The Controllership Series Certificate

19 Reviews (85 ratings)Reviews

Member's Profile
This was very helpful course as this function is often overlooked in small businesses. The material was interesting.
Anonymous Author
This course provides a great overview of the key areas related to treasury management. Finance professionals in larger companies can gain a high level understanding of the Treasury function while those working for a smaller organization which may lack a dedicated Treasury function can get started with the critical function of forecasting cash and monitoring working capital.
Anonymous Author
Thank for yet another great course! Lynn Foutain has very good slides, they are well organized and structured, provide good definitions and all the material necessary to be used in the future if needed as a reference material. She also uses good examples. The Final exam questions are relevant and easy to navigate.
Anonymous Author
The course provides plenty of relevant insights on the treasury function, with regards to cash, liquidity, and investments. The presentation was very clear and easy to understand
Anonymous Author
More of a description of the treasury mgmt function than examples of the activities. That being said it was a thorough overview of the functions and best practices of treasury.
Member's Profile
I like the materials provided by the instructor. They were detailed and made it possible to read the material in order to get information.
Member's Profile
This was a fun course. I learned about monitoring our collection ratio. A collection ratio would seem to be a vital ratio at the moment.
Anonymous Author
This is a very thorough course - would be great to get a cash flow forecast excel tool since so much of the course was on CFF. Thanks
Anonymous Author
Great outline of a very important role and function, especially in smaller companies where cash can be tight and needs to be managed.
Anonymous Author
Very informative intro course to treasury. I didn't know treasury department is responsible for more things than just cash!
Anonymous Author
I deal with treasury departments on a regular basis so this is useful primer to understand their day to day operations.
Anonymous Author
Great introduction to the Treasury Function detailing cash forecast, capital monitoring, and investing and banking.
Anonymous Author
This is a good refresher on treasury management, especially for those who haven't had to manage treasury before.
Anonymous Author
Nice overview of the role of the treasury function particularly for someone not familiar with the role.
Member's Profile
A good course on the treasury function and its importance as it relates to the Conrollership roll.
Member's Profile
I enjoyed this course very much. I have done various parts of this successfully in the past.
Member's Profile
Good overview of Treasury functions. Helpful terminology review for communication purposes.
Anonymous Author
This class was well presented and it had a lot of great information and points to consider.
Anonymous Author
Really enjoyed the overview of this area, many thanks!


Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
  7:31Introduction to The Treasury Function Part 1: Cash, Liquidity and Investments
  11:24Cash Forecasting
  10:43Cash Forecasting Continued
  13:38Preparing a Cash Forecast
  6:50Working Capital Monitoring
  5:25Cash Concentration
  15:08Investing and Banking
  16:56Investing and Banking Con'd
  1:29:24The Treasury Function Part 1: Cash, Liquidity and Investments
  PDFSlides: The Treasury Function Part 1: Cash, Liquidity and Investments
  PDFThe Treasury Function Part 1: Cash, Liquidity and Investments Glossary/ Index