Treasury is a key finance function that is vital to the financial health and success of every business, large or small.
Treasury involves the management of money and financial risks in a business. Its priority is to ensure the business has the money it needs to manage its day-to-day business obligations, while also helping develop its long term financial strategy and policies.
Where do treasury professionals work?
Treasury offers a diverse career in finance with lots of opportunities. You could be working anywhere around the world, and for any type of business, from large global organisations, not for profit and government departments, to start-ups and small and medium sized enterprises (SMEs). The treasury function will vary depending on the size and nature of each business. Whatever business or type of organisation, treasury activities will always exist even if there is no treasurer or treasury department.
Large businesses
Large and multi-national businesses (such as FTSE 100 companies) are likely to have a team of treasury professionals across multiple regions and countries that operate as part of a wider finance division.
Small businesses
In small businesses sand start-ups, treasury will not be a standalone role/function. Instead staff in the finance team will carry out specific treasury activities as part of their day-to-day responsibilities. Senior management may also be familiar with some treasury activities, and will know when to seek out expert advice as it’s needed. For example, if the owner needs to raise more money to grow the business, he’ll need advice from a treasury professional.
Whatdo treasury professionals do?
As a treasury professional you’re essentially a trusted advisor to the business on financial matters, always looking forward and planning how you can add value and drive success. The decisions you make will have a direct impact on performance and profits.
Your role is about managing the money and financial risks in a business. This involves making sure the business has the capital it needs to manage its day-to-day business obligations, while helping develop its long term financial strategy and policies. You’ll do this by focusing on how and where to put money – while managing any associated risks – to add value and drive business success.
Every business takes risks. It’s the treasury professional’s role to identify, assess and manage these risks so they support the business’s objectives. You’ll also help to identify and create new opportunities that could benefit the business.
Treasury in action – some examples:
- A business wants to expand its operations into a new region, which will generate significant revenue and create a competitive advantage. Your role is to assess the risk, weigh up the pros and cons and determine if this is a good move for the business. If it is, you’ll develop and implement a financial strategy that supports the business expansion.
- Economic factors such as interest rate rises, changes in regulations and volatile foreign exchange rates can have a serious impact on any business. Your role is to monitor and assess these market conditions, determine how these external factors could or will impact the business; and put strategies in place to mitigate any potential financial risks to the business.
What career opportunities are there for treasury professionals?
The treasury recruitment landscape is currently very positive. Over the last few years there has been a marked pick-up in recruitment at all levels including an increasing number of opportunities for graduates, with more organisations now looking to place talent at entry level direct from university.
You can expect to be well rewarded, highly valued for your expertise and gain real satisfaction from knowing what you do can make a real difference to the success of any business. Whether you want to work for large multi-national organisation, a charity, government agency or a start-up, treasury offers a diverse and lucrative career that can set you on the path to the most senior roles in business and finance and open up doors to international opportunities. Adding a recognised ACT qualification and membership to your CV can further enhance your employability by demonstrating your commitment to achieving and maintaining the highest professional standards. It can also give you a valuable edge in a competitive marketplace.
From entry level to board level, there are a huge variety of roles and job titles that include aspects of treasury. Some of these include:
- Treasury analysts, treasury dealers and treasury accountants
- Risk managers and cash managers
- Credit risk and financial analysts
- Group treasurers, head of treasury operations and tax directors
- Relationship managers and transaction services analysts
- Finance directors, financial controllers
- Managing directors, company secretaries
- Small business owners and entrepreneurs
- Non-executive directors
- Chief financial officers (CFOs) and Chief executive officers (CEOs)
How much do treasury professionals earn?
Salaries vary depending on the size, location and nature of the business. The role and your level of experience will also influence how much you are paid. Professional qualifications can also make a real difference in terms of earnings potential, eligibility for promotion and the speed at which you progress. Recruiters Brewer Morris and Hays are seeing increased demand for ACT qualifications which they say make candidates more marketable.
Broadly speaking, salaries for graduate and assistant level roles will start from £25,000 per year. In senior roles such as group treasurer you can earn from £100,000 per year. Bonuses and benefits packages may also be provided. Broad salary expectations based on recruiter Hays 2015 salary survey for key treasury roles at different levels of seniority within FTSE 100/250 companies and Small and Medium Size Enterprises (SMEs) across London and the UK can be seen on the ACT Competency Framework overview by job level.
