BCR Publishing
We are the leading provider of news, market intelligence, events and training for the global receivables finance industry.
Working with industry leading organisations, experts, governments and universities, BCR Publications delivers expertise in factoring, receivables and supply chain finance to a global audience.
BCR has long been a beacon of innovation and excellence in the realm of receivables finance, playing an instrumental role in shaping the industry’s international landscape. Through its comprehensive conferences, insightful publications, and thought leadership, BCR has facilitated crucial dialogues and connections among industry professionals, driving forward the development of receivables finance globally.
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Recording Live Discussion Session | More reliable cash forecasting in a fraction of the time
01-06-2022 | treasuryXL | CashAnalytics | LinkedIn |
Recently, treasuryXL partnered with CashAnalytics on a LIVE discussion session about how much time, effort, and money can be saved by adopting a data-driven approach to cash forecasting.
During this session, Conor Deegan CEO of CashAnalytics was joined by Ron Wessels, owner of Term Finance and Interim Head of Tax & Treasury at Systal Technology Solutions, and Pieter de Kiewit, Owner of Treasurer Search. They have presented battle-tested methods for increasing the reliability of your data, breaking free from tedious forecasting processes, and freeing up more of your time for analysis.
Click on the image above to view the recording and learn how cash flow automation
Cuts your manual workload and reporting timelines by over 90%
Provides detailed insight into transaction-level data across all your entities
Frees you from Excel-based processes that are riddled with human errors
On-Demand Webinar Hedging Margin Risk in a World of Volatility
31-05-2022 | treasuryXL | Gtreasury | LinkedIn |
Gain on-demand access and learn how to take the first steps toward creating a hedge program in our latest webinar from April 19th.
Source: Gtreasury
On-Demand Webinar
Original Broadcast: April 19, 2022
Gain on-demand access and learn how to take the first steps toward creating a hedge program. HedgeTrackers, Juan Enrique Arreola, and GTreasury’s Evan Mahoney outline:
Click here to gain On-Demand Access
Featured Speakers:
Juan Enrique Arreola, CPA
Client Services Manager
HedgeTrackers
Evan Mahoney
Product Owner
GTreasury
5 solutions how Treasury can add value to the company as a cost center.
30-05-2022 | Zhanna Irgaliyeva | treasuryXL | LinkedIn |
Treasury can act as a profit or a cost center in an organization. Usually, the treasury department is considered the cost center of the business as it is in charge of keeping costs in check and below budget. However, the revenues and profits contributed by treasury in a cost center will not result directly result in profit within the organization.
What is the Difference between a Cost vs Profit center?
The main function of treasury as a cost center is being responsible for reporting the cost processes of the company, and keeping these costs as low as possible. The difference with treasury as a profit center, is that it thinks more strategically with the goal of increasing profits rather than cutting expenses. Nowadays, only those companies that manage to earn direct profit from a trade or risk management can classify treasury as a profit center.
Value of Treasury being a cost center
Despite this fact, treasury can make a meaningful contribution by capturing indirect profits and providing additional value to companies. Let’s look at five solutions by which treasury as a cost center can make a meaningful contribution.
If a treasurer is limited in his time to invest in free funds, then Money Market instruments can be a very suitable solution, as they are highly liquid and can be used to make additional profits for a period of less than a year. The treasurer can choose which instrument is more profitable and appropriate, taking into account the current position of the company, the number of funds available and the location.
Key treasury decisions on Risk Management are a second way to bring additional value to the business. Implementation of policies and limitations is the first step for limiting, controlling, and reporting requirements. To avoid various risks in operational areas and maintain strict controls, treasury can be centralized. For managing financial market fluctuations treasury uses hedging which includes forwards, futures, and options with the aim of reducing or eliminating risks of changing interest rates, FX, commodity prices and also efficiently save funds.
Collecting the required data and setting up processes for accurate forecasting can not only safeguard the company’s funds and carefully plan its cash, but can also be used to predict future losses and find future cost-effective solutions. Fixed or variable costs can be revised to find the best opportunity for the company’s activity.
The rapidly increasing Fintech solutions are becoming even more popular in the world of treasury, which offers financial services the possibility to act as a link between providers and customers. Currently, the main areas of Fintech solutions are:
Intercompany transactions (such as loans, funding, leasing, guarantees, interest rates, or FX) can influence the company’s profits and impact on its cash flow and cash position. Therefore, treasurers should carefully check and understand how transfer pricing should be applied in the company taking into account local laws. Treasury activities can affect the company’s tax revenue, therefore, a proper transfer pricing policy with the treasury will help. Best practices are important for the company’s activity.
Conclusion
All of these treasury cost center activities are to secure the money that was earned directly and provide the company with indirect revenues or cut expenses. So, even if treasury is a cost center, it can be of great value to the company and improve solid profits. Of course, this can only happen when the process is managed by a proper treasury professional.
Thank you for reading!
Zhanna Irgaliyeva
What could be the best solution for your company? Feel free to contact treasuryXL for professional treasury guidance!
Zhanna Irgaliyeva
Treasury Manager, CTP
References:
https://www.spglobal.com/marketintelligence/en/documents/an-introduction-to-fintech-key-sectors-and-trends.pdf
https://www.afponline.org/ideas-inspiration/topics/articles/Details/how-will-blockchain-impact-the-future-of-treasury/
https://www.investopedia.com/terms/c/cost-center.asp
https://openlink.com/en/insights/articles/turning-treasury-into-a-profit-center/
Essentials of Treasury Management, 6th Edition
https://www.treasurers.org/transferpricing