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Why Treasury and Cash Management Matter ?
Treasury and cash management are essential pillars of financial health. These processes involve managing a company’s financial assets to ensure liquidity, control risks, and achieve maximum returns. Here are the primary reasons why they are indispensable:
1. Ensuring Liquidity
Ensures that the company has sufficient cash to meet operational needs and obligations.
Avoids disruptions caused by cash flow shortages.
2. Minimizing Risks
Protects against market volatility and unforeseen economic changes.
Implements hedging strategies to safeguard investments.
3. Maximizing Efficiency
Reduces unnecessary expenses and optimizes resource allocation.
Enhances decision-making with accurate financial forecasting.
When effectively managed, treasury and cash management act as the backbone of a resilient and successful business.
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