Abstract:
Treasury management involves various activities that focus on working capital, particularly cash. The cash flow timeline displays the collections and disbursements of a company, allowing treasury to manage inflow and outflow activities. Collection activities involve Fedwire, ACH, purchasing cards, and checks, managed both through lockbox and conversion to electronic funds transfer. The objective is to optimize mail, processing and availability float. Concentration systems are used to mobilize funds in collection accounts and to fund disbursement accounts. Disbursement techniques include controlled disbursing as supported by positive pay and reconciliation, and comprehensive payables.