Once considered a branch of accounting, treasurer positions are now a specialized field with their own unique career paths. Treasurers are essentially processors: they need to analyze financial information and make informed decisions that affect the firm's bottom line. Learn more about what corporate treasurers do and how to become one.
Key Takeaways
- A corporate treasurer is responsible for managing the finances of a company.
- Job duties of a corporate treasurer may included analyzing risks of investments and participating in business planning.
- Common qualities a corporate treasurer must have include: investment management, organizational leadership, and technical accounting knowledge.
- Corporate treasurers may report to chief financial officers (CFOs) in larger firms.
Skills and Qualifications
Treasurers aren't just bookkeepers. They are financial decision makers who shoulder significant responsibility for a company's finances. They are supervisors and advisors at the same time. They sometimes act as financial planners for the entire company, especially when there is investment capital involved.
Treasurers need to demonstrate many different competencies, such as investment management, organizational leadership, and technical accounting knowledge. A company treasurer is a unique role, but one that modern mid-size and large companies often need.
Responsibilities and Job Description
Generally, a company treasurer handles investments and the risks associated with investments. Some participate in all short- and long-term business planning, including activity.
The treasurer is a crucial, though sometimes challenging, position in a company. Corporate treasurers are responsible for identifying and managing risks and developing policies, but they must also coordinate accountants and other specialists to follow those policies and mitigate those risks.
Historically a technical and analytical role, the company treasurer is increasingly strategic in decision making. Today's treasurers need to understand macroeconomics, business methods, and risk avoidance.
In a larger company, the treasurer works closely with the chief financial officer (CFO) and other key analysts. They may consult with attorneys or compliance officers.
A treasurer often needs to brief different levels of management about new policies. This requires interpersonal skills and working collaboratively with junior and senior staff.
Company Treasurer Career Path
The path to control of the treasury begins with a bachelor's degree. Even the most entry-level treasurer positions require bachelor's degrees, and it's best to major in a field such as accounting, economics, finance or business administration. Some colleges and universities participate in the Corporate Treasury Management (CTM) program.
From there, it's best to get work experience in the financial sector. Those with CTM backgrounds will automatically be enrolled in the Association for Financial Professionals, which comes with particular opportunities. Others can work public or private sector jobs in accounting, analysis or fields with an investment focus.
Some may pursue professional certification, including the certified treasury professional (CTP) andchartered financial analyst (CFA) certifications. These are rarely required for a position, but they look good on a resume. Treasurers come from a wide range of backgrounds, but an easily recognizable certification like CTP or CFA should help increase your chances of getting a job in this field.
According to the Bureau of Labor Statistics (BLS), advancement opportunities in finance and accounting professions are best for individuals with graduate degrees, particularly masters of business administration (MBA) degrees.
Treasurers need a blend of technical expertise and management skills. Most work in some management capacity before reaching higher treasurer positions, even if it's simply as senior accountants or team leaders.
Downsides to Consider
Some corporate treasurers hope to become part of the executive staff (and executive compensation), particularly as finance directors or CFOs. Unfortunately, a lot of career financial experts find themselves anchored into treasury positions, especially if the company doesn't feel comfortable putting you in front of clients or shareholders.
Managing directors and chairmen want to see cross-functional management experience, since the top-level finance positions have to oversee many different teams across many departments. Ambitious treasurers should also focus on the soft skills like communication and leadership as they develop in their careers.
What Is a Chief Financial Officer (CFO)?
A chief financial officer (CFO) is a senior executive who is responsible for financial planning, cash flow, and other aspects of a company's finances. They can recommend the best strategies for achieving growth after analyzing a firm's strengths and weaknesses. A corporate treasurer often reports to a CFO.
What Is Asset Liability Management?
A corporate treasurer is often responsible for asset liability management. This is managing assets and cash flows to reduce a company's risk to prevent or minimize losses. Asset liability management focuses on timing cash flows to cover liabilities in a way to maximize profits.
How Do I Get an MBA?
A master's of business administration (MBA) is an advanced degree that can be helpful for a career as a corporate treasurer. You can pursue either a part-time or a full-time degree. Often, MBA candidates first get a job and some work experience before earning an MBA. Employers may sponsor an employee's MBA degree.
The Bottom Line
A corporate treasurer can be an ideal career path for people who enjoy working with numbers and analyzing risk. Getting a bachelor's degree in economics, finance, or a math-related field will provide a good foundation to enter this profession. Weigh the pros and cons of this job before deciding whether it's one you want to pursue.
