Implementation of Centralized Treasury in the Group of Companies

In the demanding conditions of post-crisis economy no one can afford the luxury of a loss due to deficiencies in the management of cash flows. This is especially true for really large business, organized on the principle of holding. Lack of coordination between financial managers of individual enterprises for the Group of companies as a whole results in cash shortages and problems in operating activities, considerable expenses on additional attraction of expensive borrowed funds, and reduced profitability.

Well functioning centralized treasury allows to plan cash flows within the entire holding, effectively reallocate financial resources between enterprises, reduce the need for external financing, provide more loyal terms of cooperation with credit institutions, as well as reduce costs through integrated procurement of material resources.

Our approach combines the benefits of a standard solution (a sharp reduction in budget, timing of implementation and return on investment, reliability and testing in practice) with the flexibility of individual adaptation to the conditions of a particular business.

The main objectives of the management of funds, as a rule, are: improved solvency, reduced risk of cash gaps and more efficient use of funds.

The company may create Treasury (payment center) as a separate unit, or delegate relevant functions to a particular group of employees in Financial and Economy Service.  In both cases, one will need to structure cash flows, regulate major processes: limitation of payments, processing payment orders, planning of proceeds, formation of the payment calendar.