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December 7, 2007, Newsletter Issue #56: Treasury Accounting Defined
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Tip of the Week
Treasury accounting is the area of accounting concentrating on the inflow and outflow of cash (cash flow activities,in short). Cash management, working capital management and analysis, banking relationships, investment accounts, and debt accounts - to name a few -are all involved.
Whenever a transaction involves cash outflows or inflows, treasury accounting would be included. Treasury accounting can also be known as financial accounting, only it concentrates on accounts with cash transactions.
Treasury accounting is usually only found in mid-to-large size entities. This is due mainly to the fact that smaller entities do not have enough transactions to warrant the addition of a Treasury Department. Treasury Departments are common in Fortune 100 international firms. They are not common in small, local companies.
Treasury accounting also exists in the governmental sector. In fact, it usually is involved at all levels, from small government offices to national branches.
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