Treasury management: good practices to maintain financial health

A cash management is one of the most important pillars of any company's financial health. It is the ability to ensure that there is enough liquidity to meet day-to-day needs without jeopardising medium- and long-term sustainability. A poorly organised treasury can lead to late payments, difficulties in complying with tax obligations and even the collapse of promising businesses.

What does it mean to manage cash well?

Treasury management is more than controlling cash inflows and outflows. It means planning cash flows, anticipating needs, managing payment and receipt deadlines, and balancing resources in order to avoid financial shortfalls.

Good cash management practices

1. keep a close eye on cash flow

Record all the company's income and expenditure. An up-to-date cash flow map allows you to anticipate times of greater financial pressure and prepare solutions in advance.

2. Separate personal and company accounts

Mixing personal and business finances is one of the most common mistakes in small businesses. As well as making accounting difficult, it jeopardises the clarity of financial management.

3. Negotiate deadlines with suppliers and customers

Aligning payment and receipt deadlines can make all the difference. Try to negotiate conditions that allow you to balance your cash flow without constantly resorting to credit.

4. Create a safety reserve

Having an emergency fund helps protect the company in periods of lower revenue or in unexpected situations. This practice increases resilience and avoids rash decisions.

5. Use technology

Financial management and digital accounting software makes it possible to automate tasks, centralise information and generate reports in real time, facilitating decision-making.

Conclusion

Effective treasury management is essential for maintaining financial stability and guaranteeing the company's sustainable growth. With discipline, planning and the right tools, you can turn your treasury into a true strategic ally for your business.

How Precision Advisory can help

At Precision Advisory, we know that cash management is crucial to the solidity of any company. That's why we offer personalised financial control solutions that allow managers to maintain the necessary liquidity at all times and make safer decisions.

Our support includes:

• Preparation and monitoring of cash flow statements;
• Support in negotiating deadlines with suppliers and clients;
• Implementing strategies for financial reserves;
• Use of digital tools that simplify treasury control;
• Ongoing consultancy to align treasury and business strategy.

With our experience in accounting and financial consultancy, we help transform the treasury from a simple record of movements into a real strategic management tool.