The Handbook of Global Corporate Treasury

Part Two

Transactions and Cash Management

IN THE NEXT THREE PARTS, we go through the key treasury functions in detail: transactions management, balance sheet and liquidity management, and risk management. In Part Five, we provide a Toolkit for use across various important elements of the treasury function.

Part Two introduces the importance of managing transactions and accounts that ensure fund and document flows while minimising cost and inefficiencies. We also introduce the concept of the financial supply chain and its management.

In this part, we answer some of the questions related to the management of accounts, cash, and cash flows and related transactions, such as:

• How can we derive the optimal account structure for a global group of companies?
• What are the methods to transfer money from one location or account to another?
• How is float and its management critical to the lifeline of a company?
• When do liquidity management solutions deliver maximum value to the firm?
• Why is netting becoming such a popular tool for Treasurers?
• What are the various elements in cash flow forecasting and how can these be used by Treasurers to improve the working of their function?

We begin with a look at account structures across various contexts.