Treasurers must lead the charge to bring down organisational silos that stifle optimised liquidity management. To do this successfully, they have to recruit critical stakeholders from other departments to the cause through a mixture of education, communication, and technology.
A treasury team’s understanding of the timing of a company’s cash flows is vital for both the function and the business. The treasurer must collect that information from across the organisation in order to understand when payments need to be made, when the company will be paid, and what to do with excess cash. Good communication between the treasury and other departments is key. Sometimes, however, silos between different departments can hamper this efficiency.
Independent treasury consultant Bas Rebel outlines an example of opposing interests within a company: “I was once not permitted to make contact with a client about an overdue item because, at that time, the sales team was negotiating a bigger ticket deal. I would argue that there is no better time to discuss payment on the previous invoice than when the client is looking to buy more from you. These factors have a huge impact on treasury operations.”