The United States continues to solidify its power as an international financial center. There’s a strong need for highly experienced professionals to plan, direct, and coordinate investments to maintain economic growth. That’s exactly where treasurers come in. They’re also referred to as finance officers. Treasurers have the duty of directing their organization’s budgets and overseeing the investment of funds to help meet established financial goals. Whether hired or elected, treasurers develop financial plans for a wide range of organizations, including:
- government agencies
- corporations
- manufacturing firms
- banks
- insurance carriers
Treasurers work to support their organization’s expansion for optimal profitability.
Salary
According to the Bureau of Labor Statistics, the average annual salary of the 499,320 treasurers and other financial managers employed in America is $126,660. This is equivalent to $60.89 per hour. Treasurers working for local government offices earn considerably less than average at $92,950. But those employed by financial investment firms make a whopping mean salary of $175,460 annually.
Beginning Salary
Though this job usually requires prior managerial experience, newly hired treasurers can expect to rank in the bottom 10 percentile with an annual median salary of $61,320. However, many treasurers with extensive experience have the potential to break through the quarter-million mark in their annual earnings.
Key Responsibilities
Treasurers are generally responsible for managing all financial matters in their organization by leading the department where currency or valuable items are kept. In a typical day, treasurers may be involved in:
- approving a budget plan
- supervising the investment of funds
- overseeing cash management tasks
- analyzing potential risks
- applying strategies to raise capital
- handling mergers or acquisitions
Many treasurers also prepare financial reports to help the organization’s executives develop financial policies and predict future growth. In a corporate setting, treasurers may also be responsible for cultivating company relationships with banks and other financial services for managing business investments.
Necessary Skills
First and foremost, analytical skills are a must for treasurers. They must effectively analyze complex financial documents and assist executives in making decisions that affect an entire organization’s financial well-being. Mathematical skills are useful for preparing balance sheets and tracking investment funds with a keen eye for any inconsistencies. Treasurers should have solid organizational skills to deal with a range of different financial information at once. Excellent interpersonal skills are essential for treasurers to:
- communicate financial goals
- explain complex financial transactions
- motivate beneficial mergers
- work with the executive team
Also needed are skills in:
- problem solving
- decision making
- computer
- accounting
- presentation
Degree and Education Requirements
Treasurers must have at least a four-year bachelor’s degree from a regionally accredited post-secondary institution. That being said, many employers are now seeking treasurers who have earned their master’s degree. These are appropriate degrees:
- Master of Business Administration (MBA)
- Master of Accountancy (MAcc)
- Master of Science in Finance (MSF)
- Master of Economics (M.Ec.)
Choose an academic program that will help you:
- develop clear analytical skills
- learn essential financial analysis tactics
- gain hands-on experience with financial software
- understand investments
Some corporations will also offer formal management training programs for skilled workers looking to advance into the role of treasurer.
Pros and Cons of the Position
As a senior-level job in financial management, treasurers typically enjoy:
- very high annual salaries
- wonderful benefits
- significant leadership responsibilities
Treasurers get to interact with various internal and external colleagues daily, including:
- bankers
- lawyers
- tax consultants
- accountants
- auditors
- executives
- the company’s CFO
While rubbing elbows with various members of the treasury department can be thrilling, treasurers have a challenging job. Most treasurers work over 50 hours each week and travel occasionally. Some find this role to be overly stressful, especially during tough economic times and when mergers or acquisitions are impending. Treasurers play a prominent role in managing their:
- organization’s liquidity
- credit
- currency
- interest rate
- operational risks
This means making a wrong move can detrimental to an organization’s livelihood. But, if you thrive under pressure and enjoy responsibility, becoming a treasurer could be a great career goal.
Getting Started
While earning your education, jump on every opportunity to build your resume with relevant entry-level work or internships in finance. Treasurers need to have at least five years of experience in another financial profession before advancing. You may get a head start on building essential skills by working as an:
- accountant
- auditor
- financial analyst
- budget analyst
- securities and commodities sales agent
Although professional certification is not yet required, many treasurers acquire it to demonstrate their high level of competency. It’s recommended that you consider earning the Certified Treasury Professional (CTP) credential through the Association for Financial Professionals (AFP). You’ll need at least two years of full-time treasury work experience. You must pass a four-hour exam with 170 multiple-choice questions. CTPs:
- earn up to 14% more than their non-certified peers
- enjoy more job security
- stay up-to-date in the financial field with continuing education
Future Outlook
Despite slow growth in depository credit intermediation, there is expected to be a rather favorable job outlook for treasurers to work for organizations accumulating more cash on their balance sheets. According to the Bureau of Labor Statistics, employment of treasurers and other financial managers is projected to grow as fast as average at 9%. As with most other management-level professions, candidates seeking to become treasurers will likely face heated competition to fulfill a limited number of openings. Treasurers can stand out by:
- earning a master’s degree
- becoming certified
- gaining work experience in international finance
The best job prospects will likely occur in:
- government agencies
- non-profit organizations
- insurance carriers
- private corporations
Conclusion
Overall, treasurers understand and develop financial policies to oversee the monetary activities of their organization. They do this to ensure good financial health. Treasurers are given the hefty task of directing the financial elements of an organization’s operations for maximizing profit and reducing risk.
Becoming a treasurer could be the right fit for guiding financial processes responsibly if you:
- have a strong attention to detail
- are an excellent communicator
- d love working with numbers.
Related Resources:
