Outlining the Major Pointers of Difference Between Treasury Management and Financial Management
Defining the Concept of Treasury Management
Treasury management is an important financial activity that implies complete control on the cash that is held though planning and scheduling of funds and borrowings. This entire activity is aimed at optimising the interest received from the money lend along with maintaining the currency flow. This financial activity is called treasury management. Organisations have dedicated special staff to deal with financial matters like fund raising that can be done from various sources, managing flow of cash and currencies along with strategizing for corporate finance. This financial activity is intended to streamline the cash management along with ensuring that sufficient funds are available with a company when it actually needs it on time. Also, this activity is enforced to ensure optimum use of cash by effective financial risk management and cash management. It is done with the motive to ensure that a company has sufficient liquidity and can meet its obligations. Management is engaged in spotting actual fund requirement and assigning the sources for the acquiring the same.
What is Financial Management?
Financial Management is an integral topic of Management assignment help. This activity is targeted at planning and mobilising the finance held by a company. It is performed by the managements staff to meet all the financial objectives, which primarily entails working toward reaping more brand value for a firm for maximisation of wealth. Simply put, financial management deals with all the monetary affairs by ensuring judicious use of financial resources held by a firm.
Major Pointers of Difference Between Treasury Management and Financial Management?
Students seeking management assignment help and specialising in Accounting have to answer the primary question related to Difference Between Treasury Management and Financial Management. The main distinction between two terms are their level of activity. While financial management is entirely dedicated on making long terms and extremely useful strategic investments, treasury management deals with managing funds in the short-term. Precisely one is acted upon for future of a firm while the latter deals with present and day to day investment monitoring. It can also be said that financial management has a broader purview which envelopes treasury management as its part.
- Financial management is aimed at creating, coordinating and exercising financial plan for better control on operation by assessment of income and expense budgets whereas treasury management majorly deals with preparation of financial statements.
- Management assignment help explains financial management as a process which is aimed at better finance management whereas treasury management deals with the execution of the financial plans.
- Financial management is focussed at planning of financial strategy which is effectuated in the long-run but treasury management deals with the mechanism which establishes accounting and development system majorly for short run.
Conclusively, it can be said that treasury management function is much more suited to all kinds of tasks at a micro level such making funds available for a firm’s day to day working but financial management works at a higher level where financial strategies are made to ensure that company’s operations are executed successful in the long run.
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