The treasurer in a business oversees all aspects of a company’s financial management, which differs in each organization. The exact responsibilities of a treasurer depend on the size of the company, the type of resources available, and the management structure.
A treasurer may delegate some responsibilities to finance sub-committees or other qualified staff members. Depending on the type of legal entity, the treasurer may present information to members or shareholders, make recommendations, and execute policies or transactions that have been decided by relevant parties to the business.
A treasurer needs to have a degree in finance, business studies, accounting, banking, or economics. Many accountants and accounting assistants start with work experience and pursue a degree later on to further their career. The person who fills this role needs to be extremely organized, detail-oriented, and good with numbers. A misplaced decimal can make a big difference on the balance sheet.
Treasurers often ask a lot of questions to ensure that they are making the right decisions for the business. This helps to keep all areas of the business accountable for their expenditures and recognize discrepancies. Interpersonal skills are important because of these types of interactions.
Every legal entity can benefit from having a dedicated treasurer. This position is an important part of any company. This person should have a constant idea of how healthy the business is by looking at the finances.
Risk management is a crucial factor in a business’s success. A lot of this responsibility falls on the shoulders of the treasurer. If the company is spending more than it is earning, the treasurer will be the first to know. This level of oversight could mean the difference between a successful and unsuccessful business.
The only disadvantage of having a dedicated company treasurer is the cost. As a small business owner, you may find that it is more cost-efficient to outsource your accounting to an accounting agency or contractor rather than hiring someone in-house.
We also have resources you can use to manage your company finances, including our ZenBusiness Money App, which lets you keep track of your income and expenses from one simple dashboard.
Now that you understand the treasurer definition as it pertains to company staffing, you can evaluate the best way to manage the finances of your business. A treasurer can be an important employee, especially as your small business grows and expands.
Keeping track of your finances is absolutely critical to the success of a business, which is why a treasurer can be such a valuable resource. We also have a number of tools, services, and resources to help you manage your money and keep track of the health of your business. As a business owner, you already have plenty to think about. Let us lend a hand.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.