When Should a Company Hire a Treasurer? The Complete Guide to Treasury Management

In today’s volatile economic landscape, effective financial management has become more critical than ever for businesses of all sizes. At the heart of this financial orchestration often stands a treasurer – a strategic financial officer whose role extends far beyond simply monitoring cash flow. As businesses grow and financial complexities increase, many leadership teams find themselves asking: when is the right time to hire a dedicated treasurer? This question has gained even more relevance amid economic uncertainties, rising interest rates, and increasingly sophisticated financial products.

A treasurer serves as the guardian of a company’s financial assets, overseeing liquidity management, investment strategies, risk mitigation, and financial forecasting. Unlike a CFO who takes a broader financial oversight role, treasurers specialize in optimizing the company’s cash position, managing debt structures, and implementing strategies to protect against financial risks. Early involvement of a skilled treasurer can significantly impact a company’s long-term financial stability, helping to navigate challenges that might otherwise jeopardize growth or even business continuity.

In this comprehensive guide, we’ll explore the critical indicators suggesting your company might benefit from hiring a treasurer, the precise responsibilities this role encompasses, and how to determine the optimal timing for this strategic hire. Whether you’re a growing mid-sized business navigating increasingly complex financial waters or an established enterprise looking to optimize your treasury function, this article provides essential insights to inform your decision-making process.

Understanding the Treasurer’s Role in Modern Business

Before determining when to hire a treasurer, it’s essential to understand what this specialist brings to your organization. The modern treasurer’s role has evolved significantly from its traditional roots as a cash manager to become a strategic partner in business growth and risk management.

Core Responsibilities of a Corporate Treasurer

The treasurer’s domain encompasses several critical financial areas that directly impact a company’s stability and growth potential:

• Cash Management: Optimizing working capital by monitoring cash positions, forecasting cash flows, and ensuring sufficient liquidity to meet operational needs while minimizing idle cash.
• Investment Strategy: Developing and implementing investment policies for surplus cash that balance risk with appropriate returns across varying time horizons.
• Debt Management: Structuring and negotiating debt facilities, monitoring compliance with covenants, and optimizing the company’s capital structure.
• Risk Management: Identifying and mitigating financial risks through hedging strategies, insurance products, and other protective measures against interest rate fluctuations, currency exposure, commodity price volatility, and other financial uncertainties.
• Banking Relationships: Establishing and maintaining strategic relationships with financial institutions to secure favorable terms and access to capital markets.
• Corporate Finance: Supporting major financial initiatives such as mergers and acquisitions, capital raises, and special projects requiring sophisticated financial analysis.

François Masquelier, Chairman of the European Association of Corporate Treasurers, emphasizes: “The modern treasurer has evolved from being a cash manager to becoming a strategic advisor on financial risk, working capital optimization, and capital structure decisions. Their value becomes most apparent during periods of financial stress or rapid growth when cash efficiency and risk management directly impact business viability.”

Treasurer vs. CFO: Understanding the Distinction

While there is often some overlap between the CFO and treasurer roles, particularly in smaller organizations, their focus areas differ significantly:

Treasurer	Chief Financial Officer
Focuses on cash management, liquidity, and financial risk	Oversees all financial functions, including accounting, tax, and financial planning
Specializes in banking relationships and capital markets	Provides strategic financial leadership across the entire organization
Manages investments and debt portfolios	Makes broad financial policy decisions and works closely with the CEO on strategy
Implements hedging and risk mitigation strategies	Oversees financial reporting, budgeting, and compliance
Day-to-day financial operations and cash positioning	Long-term financial planning and investor relations

In smaller companies, the CFO may initially handle treasury functions, but as financial complexity increases, the specialized expertise of a treasurer becomes increasingly valuable. According to research from The Association for Financial Professionals, companies with dedicated treasury functions typically achieve higher returns on their cash investments and maintain more efficient working capital structures compared to those where treasury responsibilities are dispersed among multiple roles.

Key Indicators Your Company Needs a Treasurer

The decision to hire a treasurer should be driven by specific organizational needs rather than simply following industry norms. Here are several telling indicators that suggest your company would benefit from dedicated treasury expertise:

1. Growing Complexity in Cash Management

As businesses expand, particularly across multiple locations or international borders, cash management becomes increasingly complex. When your organization reaches a point where managing daily cash positions, forecasting future cash needs, and optimizing banking structures requires specialized attention, it’s time to consider a treasurer. This complexity often manifests through:

• Multiple banking relationships across different geographic regions
• Increasing volume of daily transactions requiring reconciliation
• Need for sophisticated cash pooling structures
• Challenges in forecasting cash needs across business units
• Growing amounts of idle cash that could be better deployed

A dedicated treasurer can implement centralized treasury management systems, optimize bank account structures, and develop more accurate forecasting methodologies. These improvements typically result in reduced banking costs, minimized idle cash balances, and better anticipation of cash needs across the business.

2. Significant Debt Obligations or Financing Requirements

When your company takes on substantial debt or faces complex financing needs, professional treasury management becomes essential. A treasurer brings specialized expertise in structuring debt facilities, negotiating terms, ensuring compliance with covenants, and optimizing the overall capital structure. This expertise becomes particularly valuable when your company:

• Issues corporate bonds or commercial paper
• Maintains multiple credit facilities with varying terms
• Requires specialized financing for capital-intensive projects
• Needs to navigate covenant compliance across multiple debt instruments
• Faces refinancing of significant debt tranches

Studies have shown that companies with dedicated treasurers typically secure more favorable financing terms and maintain stronger relationships with lending institutions. According to Treasury Strategies, a treasury consulting firm, companies with professional treasury management typically reduce their borrowing costs by 15-30 basis points compared to peers without specialized treasury functions.

3. Increasing Exposure to Financial Market Risks

As companies grow, particularly internationally, they often face mounting exposure to market risks such as currency fluctuations, interest rate movements, and commodity price volatility. These risks can significantly impact profitability and financial stability if not properly managed. Indicators that risk management requires treasury expertise include:

• Growing international revenue streams creating foreign exchange exposure
• Significant floating rate debt vulnerable to interest rate movements
• Dependency on commodities subject to price volatility
• Complex supply chains with embedded financial risks
• Need for sophisticated hedging strategies to protect margins

A treasury professional develops and implements risk management policies, selects appropriate hedging instruments, and maintains ongoing monitoring of financial exposures. This specialized knowledge helps protect the company from unexpected financial shocks that could otherwise derail business plans or erode profit margins.

4. Substantial Investment Portfolio Management

When a company accumulates significant cash reserves, the opportunity cost of suboptimal investment strategies grows exponentially. A treasurer provides the expertise necessary to develop investment policies that balance safety, liquidity, and yield appropriately. This need becomes apparent when your organization:

• Maintains substantial cash reserves beyond immediate operational needs
• Requires segmentation of cash between operating funds and strategic reserves
• Needs to optimize returns across different time horizons
• Must navigate complex investment options and instruments
• Requires strategies for repatriating international cash holdings

“Effective investment management can significantly impact a company’s bottom line,” notes Sarah Johnson, former treasurer at Fortune 500 company Procter & Gamble. “Even a 25-50 basis point improvement in returns on a substantial cash portfolio directly enhances financial performance, which is especially important in low-margin industries.”

5. Increasing Regulatory Complexity

The regulatory landscape for financial operations continues to grow more complex, particularly for companies operating internationally. When compliance requirements begin consuming significant management attention, treasury expertise becomes invaluable. This typically happens when:

• Your business expands into highly regulated markets or jurisdictions
• You face increasing reporting requirements related to cash movements
• Anti-money laundering and know-your-customer regulations impact operations
• International tax structures require sophisticated cash management solutions
• Financial sanctions or restrictions affect business regions

A treasurer helps navigate these regulatory complexities while ensuring the company maintains efficient financial operations that comply with relevant laws and regulations across all operating regions.

Assessing Treasury Needs Based on Company Size and Growth Stage

While specific business complexities often drive the need for treasury expertise, company size and growth stage provide helpful frameworks for anticipating when this need might arise. The appropriate timing varies significantly based on industry, business model, and financial structure, but certain patterns emerge across growth trajectories.

Early-Stage Startups (Pre-Series B)

Most early-stage companies manage without dedicated treasury functions, typically relying on founders, the CFO, or finance managers to handle basic cash management:

• Typical Treasury Needs: Basic cash flow forecasting, simple banking relationships, initial financial controls
• Who Typically Handles It: Founders, CFO, or outsourced accounting services
• When to Consider Treasury Support: When securing significant funding rounds (Series B or beyond) that substantially increase cash management complexity or when international expansion begins

For startups in this phase, full-time treasury expertise is rarely cost-effective. However, periodic consultation with treasury specialists might prove valuable during fundraising events or when establishing initial banking structures.

Growth-Stage Companies ($50M-$250M Revenue)

As companies reach mid-market size, treasury needs typically expand significantly, often warranting dedicated expertise:

• Typical Treasury Needs: Formalized cash forecasting, multiple banking relationships, initial investment policies, basic risk management, debt facility management
• Who Typically Handles It: Finance Director, Controller, or increasingly, a dedicated Treasury Manager
• When to Consider a Full-Time Treasurer: When approaching $100-150M in revenue, particularly if accompanied by international operations, significant debt, or substantial cash reserves

At this stage, many companies benefit from hiring a treasury manager who reports to the CFO, gradually building out specialized treasury capabilities as complexity increases. According to a survey by the Association for Financial Professionals, approximately 45% of companies in this size range employ at least one specialist with primarily treasury responsibilities.

Mid-Market Enterprises ($250M-$1B Revenue)

Companies in this range typically benefit significantly from formalized treasury operations:

• Typical Treasury Needs: Sophisticated cash management structures, formal investment programs, active debt management, hedging programs, banking relationship optimization
• Treasury Structure: Usually a dedicated treasurer with a small supporting team
• Focus Areas: Working capital optimization, risk management, funding strategy, bank relationship management

For mid-market enterprises, the cost-benefit analysis typically strongly favors dedicated treasury expertise. Research by The Hackett Group indicates that companies with professional treasury management in this size range typically achieve 15-20% improvements in working capital efficiency compared to peers without such expertise.

Large Enterprises ($1B+ Revenue)

Large organizations almost universally maintain sophisticated treasury departments:

• Typical Treasury Needs: Enterprise-wide liquidity management, complex investment portfolios, sophisticated capital markets activities, comprehensive risk management programs
• Treasury Structure: Treasury department led by a treasurer or treasurer/VP Finance with specialized teams for cash management, investments, risk management, and capital markets
• Focus Areas: Strategic financial risk management, capital structure optimization, global banking architecture, supporting growth initiatives

At this scale, the treasury function becomes a strategic differentiator, with potential to significantly impact financial performance through optimized funding costs, effective risk management, and support for strategic initiatives. According to research from Greenwich Associates, companies with top-quartile treasury functions achieve funding costs approximately 20-35 basis points lower than industry averages and maintain 10-15% less cash buffer while ensuring equivalent liquidity coverage.

Quantifying the Value of Treasury Expertise

Understanding the potential financial impact of professional treasury management helps companies make informed decisions about investing in this specialized capability. While the value varies significantly based on each company’s specific circumstances, several key areas consistently demonstrate measurable returns.

Working Capital Optimization

Effective treasury management typically yields significant improvements in working capital efficiency through:

• Cash Conversion Cycle Improvements: Professional treasurers implement strategies to accelerate collections, optimize payment timing, and improve inventory management, often reducing cash tied up in operations by 10-20%.
• Banking Structure Optimization: Centralizing cash management and implementing techniques like cash pooling and in-house banking can reduce idle cash balances by 20-30% while maintaining operational liquidity.
• Forecasting Accuracy: Improved cash forecasting reduces the need for excessive cash buffers, potentially freeing up millions in working capital for strategic deployment.

According to a study by The Hackett Group, companies with top-quartile treasury operations typically achieve 5-8 days improvement in their cash conversion cycle compared to industry peers, translating to substantial cash release for every million dollars of revenue.

Cost of Capital Reduction

Treasury expertise often leads to meaningful reductions in financing costs through:

• Optimized Debt Structures: Professional debt management typically yields 15-30 basis point improvements in overall borrowing costs.
• Enhanced Banking Relationships: Strategic relationship management leads to better terms, reduced fees, and improved access to capital.
• Diversified Funding Sources: Treasurers develop access to multiple financing channels, reducing dependency on any single source and improving terms through competition.

For a company with substantial debt, even modest improvements in borrowing terms can translate to millions in annual savings. For instance, a 20 basis point reduction on $100 million in debt represents $200,000 in annual interest savings.

Risk Mitigation Value

While harder to quantify than direct cost savings, the risk management value provided by treasury expertise can be substantial:

• Foreign Exchange Management: Companies with international exposure typically experience 2-3% earnings volatility due to currency fluctuations. Effective hedging strategies can reduce this volatility by 60-70%.
• Counterparty Risk Management: Professional treasury functions implement structured approaches to managing bank and customer credit risk, potentially avoiding significant losses during economic downturns.
• Interest Rate Risk Protection: Strategic management of interest rate exposure helps insulate companies from unexpected rate movements that could otherwise significantly impact borrowing costs.

“The value of risk management becomes most apparent during market disruptions,” explains Michael Roberts, Professor of Finance at the Wharton School. “Companies with sophisticated treasury functions typically navigate financial crises with significantly less disruption than peers without such capabilities, often emerging stronger as competitors struggle with liquidity challenges.”

Investment Return Enhancement

For companies with significant cash reserves, professional investment management yields measurable returns:

• Optimized Investment Policies: Treasurers develop tiered investment approaches that match liquidity needs with appropriate instruments, typically improving overall portfolio yields by 25-50 basis points without increasing risk.
• Structured Investment Vehicles: Access to more sophisticated investment options that maintain safety while enhancing returns.
• Dynamic Cash Positioning: More precise management of operating cash needs allows greater allocation to higher-yielding instruments.

On a cash portfolio of $50 million, a 35 basis point improvement represents $175,000 in additional annual income – often more than covering the cost of treasury expertise.

Building Your Treasury Function: Options and Approaches

When your organization recognizes the need for treasury expertise, several implementation approaches are available, ranging from full-time hires to outsourced services. The optimal solution depends on your specific needs, budget constraints, and the complexity of your treasury requirements.

Full-Time Treasury Staff

Hiring dedicated treasury professionals provides the most comprehensive solution for companies with substantial needs:

Advantages:

• Deep integration with the business and its specific financial challenges
• Full-time focus on optimizing the company’s financial position
• Development of institutional knowledge and company-specific expertise
• Ability to build treasury capabilities tailored precisely to company needs
• Direct alignment with company goals and culture

Considerations:

• Significant investment in compensation (typically $150,000-$250,000+ for an experienced treasurer)
• Need to invest in treasury technology and infrastructure
• Challenge of attracting top talent, particularly for companies in non-financial sectors
• Potential underutilization if treasury needs are not yet full-time

This approach is typically most suitable for companies with revenue exceeding $250 million, significant international operations, substantial debt, or large cash reserves requiring active management.

Fractional Treasury Services

Engaging experienced treasury professionals on a part-time basis offers a middle-ground solution:

Advantages:

• Access to senior treasury expertise without full-time costs
• Flexibility to scale services up or down based on changing needs
• Ability to address specific treasury projects or challenges
• Potential for knowledge transfer to internal finance team
• Often brings best practices from multiple organizations

Considerations:

• Less integration with day-to-day operations
• Potential divided attention across multiple clients
• May require more oversight from internal finance leadership
• Typically higher hourly/daily rates than equivalent full-time compensation

Fractional treasury services often prove ideal for growing mid-market companies experiencing increasing treasury complexity but not yet requiring full-time expertise. This approach also works well for companies undertaking specific treasury initiatives, such as banking relationship restructuring or implementing new cash management systems.

Treasury Consulting Services

Specialized consulting firms offer project-based treasury expertise:

Advantages:

• Access to specialized expertise for specific projects or challenges
• No long-term commitment or overhead
• Exposure to best practices across multiple industries and organizations
• Often brings proprietary methodologies and tools
• Can provide independent assessment of treasury needs and operations

Considerations:

• Typically the highest hourly cost option
• Project-based rather than ongoing support
• May require significant knowledge transfer for sustainable results
• Less customization to company-specific culture and practices

This approach works well for specific treasury initiatives like system implementations, banking structure optimization, or developing initial treasury policies. It’s also valuable for periodic reviews of treasury operations or providing specialized expertise during major financial events like acquisitions or debt refinancing.

Outsourced Treasury Services

Fully outsourced treasury operations have become increasingly viable with advances in technology:

Advantages:

• Access to established treasury infrastructure and technology
• Scalable services that grow with organizational needs
• Operational continuity and reduced key person risk
• Often more cost-effective than building internal capabilities from scratch
• Immediate access to established processes and controls

Considerations:

• Less integration with broader financial strategy
• Potential challenges with customization for unique business needs
• Service quality depends heavily on provider selection
• May still require internal oversight and management

Outsourced treasury services often work well for specific treasury functions like cash positioning, payment processing, and basic reporting, particularly for organizations without the scale to justify building comprehensive internal capabilities.

Hybrid Approaches

Many organizations achieve optimal results through hybrid approaches that combine elements of the options above:

• Internal Leadership + Outsourced Execution: A senior internal treasury director who oversees outsourced providers handling day-to-day operations
• Core Internal Team + Specialist Consultants: Building internal capabilities for routine treasury functions while engaging specialized expertise for complex areas like risk management or capital markets
• Phased Implementation: Beginning with consulting or fractional services to develop treasury foundation, then transitioning to internal resources as needs grow

The optimal approach varies based on your organization’s size, complexity, growth trajectory, and specific treasury needs. Many companies find value in starting with external support to establish treasury foundations, then gradually internalizing capabilities as the business case strengthens.

Finding and Hiring the Right Treasury Talent

Once you’ve determined that your organization needs treasury expertise and selected an implementation approach, finding the right talent becomes critical to success. The treasury profession requires a unique combination of technical knowledge, strategic thinking, and relationship management skills.

Key Qualifications and Capabilities

When evaluating treasury candidates, consider these essential qualifications and capabilities:

Technical Knowledge:

• Educational Background: Typically finance, accounting, economics, or business administration degrees
• Professional Certifications: Certified Treasury Professional (CTP), Association of Corporate Treasurers (ACT) qualifications, or Chartered Financial Analyst (CFA)
• Banking and Financial Markets: Understanding of financial instruments, capital markets, and banking services
• Risk Management: Knowledge of financial risk assessment and hedging strategies
• Technology: Familiarity with treasury management systems and financial technology

Strategic Capabilities:

• Financial Analysis: Ability to model complex financial scenarios and their impacts
• Risk Assessment: Sophisticated understanding of risk/reward tradeoffs
• Business Acumen: Understanding of how treasury decisions impact broader business objectives
• Forecasting: Skill in predicting cash flows and financial requirements
• Regulatory Knowledge: Understanding of relevant financial regulations and compliance requirements

Soft Skills:

• Communication: Ability to explain complex financial concepts to non-financial stakeholders
• Relationship Management: Skill in managing banking and financial institution relationships
• Attention to Detail: Precision in financial transactions and analysis
• Problem-Solving: Creative approaches to financial challenges
• Integrity: Ethical handling of financial resources and confidential information

“When hiring a treasurer, look beyond technical qualifications to find someone who can translate complex financial concepts into business impact,” advises Maria Henderson, Chief Human Resources Officer at a global manufacturing firm. “The most effective treasurers combine analytical rigor with strong communication skills and business partnership capabilities.”

Industry-Specific Considerations

While core treasury principles apply across sectors, certain industries have unique treasury requirements worth considering when evaluating candidates:

• Manufacturing: Experience with commodity risk management, complex supply chains, and international trade finance
• Technology: Understanding of rapid growth treasury needs, international expansion challenges, and managing significant cash reserves
• Financial Services: Deep regulatory knowledge, sophisticated risk management, and understanding of complex financial products
• Retail: Experience with high transaction volumes, seasonality management, and consumer payment systems
• Healthcare: Familiarity with complex receivables cycles, reimbursement systems, and healthcare-specific financing

While industry-specific experience can be valuable, candidates with strong treasury fundamentals can often transition successfully between sectors, bringing fresh perspectives and best practices from different industries.

Finding Treasury Talent

Treasury professionals represent a relatively specialized talent pool, requiring targeted recruitment approaches:

• Specialized Finance Recruiters: Firms with dedicated treasury practice areas often maintain networks of qualified professionals
• Professional Associations: Organizations like the Association for Financial Professionals (AFP) and the Association of Corporate Treasurers (ACT) offer job boards and networking opportunities
• Banking Relationships: Your existing banking partners can often refer talented professionals from their networks
• LinkedIn and Specialized Finance Job Boards: Targeted posting on platforms frequented by treasury professionals
• Treasury Consulting Firms: Consultants often transition to corporate roles and may have networks of qualified candidates

When recruiting treasury talent, emphasize not just the technical requirements but also the strategic impact of the role and growth opportunities within your organization. Top treasury professionals typically seek positions where they can meaningfully influence financial strategy rather than simply execute transactions.

Evaluating Treasury Candidates

Assessing treasury candidates requires evaluating both technical capabilities and strategic thinking:

Effective Assessment Approaches:

• Case Studies: Present realistic treasury scenarios and evaluate the candidate’s approach to analysis and problem-solving
• Technical Interviews: Include targeted questions about specific treasury areas relevant to your organization
• Cross-Functional Panels: Include leadership from finance, operations, and other key stakeholders who will interact with treasury
• Accomplishment Focus: Ask for specific examples of how the candidate has added value in previous roles
• Reference Checks: Speak with former managers and banking partners who have worked directly with the candidate

Sample Treasury Interview Questions:

• “Describe how you’ve optimized a company’s banking structure to improve liquidity management.”
• “What approach would you take to developing our international cash repatriation strategy?”
• “How have you implemented hedging programs to manage financial risk? What were the results?”
• “Explain how you would develop a cash forecast for our business and what factors would be most important to consider.”
• “How do you stay current with evolving regulations affecting corporate treasury activities?”

The ideal evaluation process assesses both technical treasury knowledge and the candidate’s ability to apply that knowledge to your specific business context and challenges.

Integrating Treasury Into Your Financial Strategy

Successfully incorporating treasury expertise into your organization requires thoughtful integration with existing financial functions and clear alignment with broader business objectives. Whether you’re hiring your first treasurer or expanding an existing treasury function, consider these critical success factors.

Defining Clear Treasury Objectives

Establishing specific objectives for your treasury function helps focus efforts and provides a framework for measuring success:

• Short-term Objectives: Immediate priorities like establishing cash forecasting processes, reviewing banking relationships, or addressing specific financial risks
• Medium-term Goals: Developing comprehensive treasury policies, implementing treasury management systems, or optimizing the capital structure
• Long-term Vision: Strategic aspirations like supporting international expansion, developing sophisticated risk management capabilities, or transforming treasury into a value center

“The most effective treasury functions begin with clearly defined objectives that link directly to broader business goals,” notes Jonathan Lewis, partner at a leading financial advisory firm. “This clarity helps prioritize initiatives and demonstrates treasury’s strategic value beyond transaction processing.”

Establishing Effective Treasury Governance

Proper governance structures ensure treasury activities align with organizational risk appetite and strategic priorities:

• Treasury Policy: Developing comprehensive written policies for cash management, investments, debt, and risk management that define parameters and authorities
• Reporting Structure: Establishing clear reporting relationships, typically with the treasurer reporting to the CFO
• Decision Authorities: Defining transaction limits and approval requirements for different types of treasury activities
• Performance Metrics: Establishing key performance indicators that measure both operational efficiency and strategic impact
• Risk Oversight: Implementing appropriate controls and monitoring for treasury activities

Effective treasury governance balances operational flexibility with appropriate risk management and oversight. This typically includes regular reporting to senior leadership on key treasury metrics and activities.

Technology Enablement

Modern treasury functions rely increasingly on specialized technologies to enhance efficiency and effectiveness:

• Treasury Management Systems (TMS): Software platforms that integrate cash management, payments, forecasting, and reporting
• Bank Connectivity Solutions: Technologies for secure, efficient communication with banking partners
• Data Analytics Tools: Capabilities for analyzing financial data to inform decisions
• Risk Management Systems: Specialized tools for monitoring and managing financial risks
• Robotic Process Automation: Technology for automating routine treasury processes

The appropriate technology investment depends on your organization’s size, complexity, and specific treasury requirements. Many companies begin with basic cash management and forecasting tools, then expand capabilities as treasury operations mature.

Measuring Treasury Success

Establishing clear metrics helps demonstrate treasury’s value contribution and guides continuous improvement:

Operational Metrics:

• Cash forecast accuracy
• Days cash on hand
• Bank fee reduction
• Transaction processing costs
• Policy compliance metrics

Strategic Impact Metrics:

• Working capital improvement
• Reduction in borrowing costs
• Investment portfolio yield enhancement
• Risk exposure reduction
• Support for strategic initiatives

Regular reporting on these metrics to senior leadership helps maintain visibility of treasury’s contributions and builds support for continued investment in treasury capabilities.

Change Management Considerations

Successfully implementing treasury changes often requires thoughtful change management, particularly in organizations where treasury activities were previously distributed across multiple functions:

• Stakeholder Engagement: Involving key partners like accounting, FP&A, tax, and operations in treasury initiatives
• Process Transition Planning: Carefully mapping the shift of responsibilities to treasury
• Communication Strategy: Clearly articulating the benefits of treasury centralization and specialization
• Training and Education: Building broader financial literacy around treasury concepts
• Quick Wins: Identifying high-visibility, high-impact initial projects to build credibility

Effective change management significantly increases the likelihood of successful treasury implementation and accelerates the realization of benefits from treasury expertise.

Conclusion: Making the Treasury Decision

The decision to invest in treasury expertise represents a significant milestone in a company’s financial evolution. While the specific timing varies based on individual circumstances, the need typically emerges as financial complexity increases, particularly related to cash management, debt structures, investment portfolios, and financial risk exposures.

Companies that proactively address growing treasury needs often gain competitive advantages through more efficient capital utilization, reduced financial risks, and enhanced financial decision-making. Conversely, delaying necessary treasury investment can lead to missed opportunities, inefficient financial structures, and increased vulnerability to market volatility.

As you evaluate your organization’s treasury requirements, consider both quantitative factors like revenue size, cash volume, and debt levels, as well as qualitative indicators like increasing financial complexity, international expansion, and growing risk exposures. The optimal solution—whether a full-time treasurer, fractional support, or specialized services—should align with your specific needs and organizational context.

Ultimately, the right treasury solution enables your organization to transform financial complexity from a challenge into a strategic advantage, supporting sustainable growth and resilience in an increasingly volatile business environment.

Frequently Asked Questions About When a Company Should Hire a Treasurer

For more information about strategic treasury management, visit The Panax Treasury Resources or the Association for Financial Professionals Treasury Hub.