What is the difference between treasury and finance?

Question

Zippia Team · Accepted Answer

The difference between treasury and finance lies with the scope and timeline of their roles in the company. Treasury management, for example, is more focused on short-term and day-to-day monitoring of the investments, whereas a finance professional is more focused on long-term and strategic investments.

Treasury professionals implement financial plans. A financial professional, on the other hand, formulates, coordinates, and administers financial plans for controlling operations.

The focus of a treasury professional is on periodic examination of income and expense budgets, compared to a financial professional who focuses more on the preparation and presentation of financial statements.

Treasury professionals focus on the process of administering the financial assets and holdings of a business. The goal of most treasury departments is to optimize their company's liquidity, make sound financial investments for the future with any excess cash, and reduce or enter into hedges against its financial risks.

Finance professionals, on the other hand, are responsible for the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization.