Chapter

Basic Treasury Management Concepts

Investment Management and Finance Management

5. Corporate Finance

Working Capital Management

  1. James Sagner Managing Principal1,
  2. Michele Allman-Ward Managing Partner2

Published Online: 15 SEP 2008

DOI: 10.1002/9780470404324.hof002082

Handbook of Finance

Handbook of Finance

How to Cite

Sagner, J. and Allman-Ward, M. 2008. Basic Treasury Management Concepts. Handbook of Finance. II:5:82.

Author Information

  1. 1

    Sagner/Marks and Associate Professor in the School of Business of Metropolitan College of New York

  2. 2

    Allman-Ward Associates

Publication History

  1. Published Online: 15 SEP 2008

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.

Keywords:

  • treasury management;
  • float;
  • availability;
  • earnings credit rate allowances;
  • sweeps;
  • account analysis;
  • Fedwire;
  • Automated Clearinghouse (ACH);
  • checks;
  • lockboxes;
  • controlled disbursement;
  • positive pay;
  • reconciliation;
  • comprehensive payables