Because companies face all of the risks mentioned, the treasurer’s job is to address the financial risks and manage them. Their main duty is to protect the company’s value from the financial risks it faces from its ongoing business activities. This requires a treasurer to have an understanding of many areas of business and ability to communicate with finance professionals. Read on to find out more about what a treasurer does.
Part of a treasurer’s responsibility is to collect funds and ensure that they are deposited to the organisation’s financial institution. Records of all funds collected have to be maintained and an accurate book keeping system should in place to track a balanced monthly account of all transactions. The treasurer also has to present the financial reports during meetings to the board of directors.
The treasurer is responsible for preparing a mid-year report for the company’s financial investors to be informed of the detailed distribution of funds. It is submitted to an Assistant Executive Director or any other administrator within the senior management. Mid-year reports are usually submitted by 30th June and it should contain all financial records and show a balance of all accounts within the organisation.
The treasurer is also responsible for submitting an annual financial statement at the end of the calendar year. Similar to the midyear report, an annual report shows financial activity throughout the entire year and must end of the last day of the year. The report is submitted to the Assistant Executive Director or any other administrator before the deadline assigned by the board of directors. The treasurer’s task is to ensure all bank transactions match cancelled cheques and invoices, and finally a licensed independent auditor has to audit and certify the report.
If an organisation ever needs to secure financing from another institution, the treasurer is responsible for negotiating the transaction, preparing the appropriate documents as well as reporting to the Director of Accounts of the organisation. The treasurer has to ensure all payments are met after being approved by the board.
Treasurers have moved past managing working capital to working with an organisation’s senior management to manage risk and boost the bottom line. They are increasingly assuming the more strategic roles within the company.