Five Reasons Why Treasurers Should Conduct a Treasury Review / Audit

"If you don't now where you are going, any road will get you there"
- LeWis Carrol

Conducting a treasury review / audit consists of documenting and benchmarking treasury processes, procedures and policies in order to create a strategic, multi-year improvement plan.   TreaSolution's treasury review consulting services has allowed us to gain extensive experience working with treasury departments in order to assist them in implementing treasury best practices.   Listed below are five reasons why a CFO / Treasurer would want to make a treasury review project a top priority.

New Treasury Department Leadership

There is a substantial learning curve for treasury department senior management (CFO, Treasurer, Assistant Treasurer, etc...) when they are new to the treasury department.  This is especially true if the treasury department senior management is also new to the company.  A treasury review / audit inherently shortens the learning curve for senior management because the treasury review will document all critical treasury processes, benchmark them against best practices and highlight both what is working well and opportunities for improvement.  What more could new treasury department leadership ask for when starting a new job?

Mergers / Acquisitions

Combining two treasury departments is a challenging process.   Combine two treasury departments while consistently implementing best practices is even more difficult!   Often there are time constraints when combining treasury operations due to mergers / acquisitions.  This often creates an environment of "just make it work" instead of "make it work well."   A treasury review after a merger / acquisition allows corporate treasurers to take a step back and critically analyze the combined treasury operations so that best practices can be implemented over time.

Stable Treasury Personnel

"It's always been done that way!" or "If it's not broken don't fix it!"  Under most situations having stable treasury personnel is a good thing!  Having stable treasury personnel is a reason for a treasury review because there are motivations for not disrupting known processes, technologies, procedures, policies, vendors, etc...   A treasury review / audit project is a catalyst to critically analyze all critical facets of the treasury department.   A treasury review project will analyze the business logic of each critical process, policy, et al. to ensure the implementation of best practices.

Organic Organization Growth

Has your organization outgrown your current treasury function?   Are your treasury personnel struggling with the volume & complexity of your organization's treasury management requirements.  If so, a treasury review will assist corporate treasurers in developing a successful treasury strategy that will foster secure and efficient treasury operations.   Business requirements dictate the scope of treasury operations.  Therefore, a treasury review / audit project will review all critical business requirements in order to develop a secure and effective treasury strategy.

Treasury Technology Advancements

All technology, including treasury technology, advances at an astonishing rate!   A key reason for considering a treasury review project is to help ensure that your organization is leveraging treasury technology effectively.  A treasury review will analyze the utilization of both current treasury technology (within the treasury department) and treasury technology which is available in the marketplace.   A treasury review will provide senior treasury management with a clear understanding as to how treasury technology can make a meaningful impact upon treasury operations, security and efficiency.

Conclusion

Ultimately, a treasury review project enables corporate treasurers to  have a thorough understanding of their treasury department operational successes, risks and opportunities.   A treasury review / audit project is a tool that successful treasurers utilize when developing a world-class treasury function. 

What road will you take to create the best possible treasury department for your organization?

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Relevant TreaSolution Services:
Treasury Benchmarking Reports
Treasury Best Practices Review

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