Following the Money: Treasury Functions and Accountancy Functions in Large Companies

The finance sector may seem like some great monolithic edifice, but of course, like any industry, it is full of sub-divisions and specializations. Some of these functions are disconnected from one another. Others are in constant collaboration. Take for example the relationship between the accounts department and the treasury department. Some people think these functions are indistinguishable but in reality they are very different.

Accountancy and Finance

Any large company will have a treasury function and an accountancy function. The focus of these two departments is often categorized in terms of future and past actions. Accounting is closer to book-keeping in the sense that you manage and prepare financial statements and records. Accounting involves analysis and creation of financial documents whereas finance may involve the control and management of assets. Accountancy is more about compiling, tracking, assessing and presenting information. Ensuring paper trails, in a sense. Financial management involves making actual decisions about the future of an enterprise; establishing how best to invest money and secure liquidity etc.

Treasury management departments are usually overseen by a Chief Financial Officer (CF0). The role of the CFO encompasses aspects of strategic planning, capital management, investor relations, financial reporting etc. The more complex the organization, the greater likelihood that these responsibilities will be delegated. Across areas such as processing and cash control there will often be an overlap between the accounts department and treasury.

Differences and Overlaps

Treasury management is closer to overall financial management, with one or two omissions such as inventory. Treasury is highly dynamic. It requires good people-skills and fast decision making. The concerns of treasury are immanent whereas the concerns of accounting are often retrospective. Treasury involves the management of risk, the management of liabilities and assets, the management of cash, and the management of important relationships (suppliers, investors etc.). It involves ongoing collaboration with other managements.

The accounts department usually prepares information for the rest of the organization, for instance, entries necessary to process payments etc. Documents prepared in the accounts department will circulate throughout other departments. They will be utilized by managers, executives, taxation authorities and investors.

Accountancy and Treasury Management Jobs

Accountancy and treasury management positions are some of the most popular jobs in Canada at the moment. They are competitive and well paying sectors with good opportunities for career advancement and diversification. They also have comparatively low unemployment rates, less than half the Canadian average.

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Job Security Vs Financial Freedom

Why do most people settle for job security instead of financial freedom?

For most of us, it has been ingrained in us our entire lives from our education system, our family & friends, and 95% of the people we are in contact with each and every day. We are not taught how to be financially free, we are taught how to get into a good college so we can get a nice paying job with a major employer.

I am reading the Rich Dad’s Cash Flow Quadrant, the Guide to Financial Freedom and in this book Robert Kiyosaki discusses this issue head on and how you can move from the job security mindset to one of financial freedom. If you are familiar with Robert Kiyosaki, you know that his focus is on moving from the left quadrants (E,S) over to the right quadrants (B,I). In essence, it is moving from security to freedom. Most people choose the security over freedom. But you really need to re-evaluate your decisions because employers are no longer loyal to you. You will have your position off shored to another country to save a couple bucks. Additionally, the tax situation in this country is out of control and for our government to continue to pay for all of these entitlement programs like the newly passed healthcare program your taxes will be going through the roof. We are currently working half the year for the government….gee thanks!

According to Robert Kiyosaki, there is way to get from the job security quadrant (E) over to the financially free quadrants (B,I). The solution is finding a business system and having others work the system for you. There are three types of business systems: Traditional, Franchise, and Network Marketing. There are pros and cons to each system but the one that interests me is the Network Marketing System.

What are the benefits of joining a network marketing company?

One of the best benefits of joining a network marketing company and starting your own business are the tax advantages that come to you with starting a home based business – see your tax advisor for additional information. Another benefit is the low start up costs – for a few hundred dollars, you can easily build a six figure residual income. Most network marketing companies also have automated systems so you do not have to carry inventory, handle order processing, fulfillment, accounting, etc. You can also start this business part time while continuing your full time JOB and slowly make the transition to the right side of the cash flow quadrant.

The personal development and education in network marketing is also a huge benefit to help get rid of the mindset of security and focus on freedom. To be successful in network marketing, you need to overcome the fear of being rejected and stop worrying what others think. You also have the opportunity to work with a ton of different people and learn to become a leader.

Network Marketing is the solution that millions of us have been searching for……we just need to decide not continue to be a slave to ‘job security’ until we are 70 and hoping that the government will follow through on the promise of a retirement. The time is now to really decide to make a change in our lives and do something that will benefit us, our spouses, and our children. If you work hard over the next 2-4 years building your network marketing business and stay dedicated, you will be amazed at the freedom afforded you and your family. Join me in my journey to move to the right side of the cash flow quadrant!

So you are thinking……what type of network marketing company should you join?

I’ve recently joined a network marketing company, Numis Network, and here are some qualities that I saw with this company and this opportunity

– Promotion of Gold & Silver (a refreshing product)

– No competition in the network marketing space

– An unbelievable pay plan

– Strong Leadership team with experience in the network marketing field

– Ground floor opportunity

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