It is a document in which the outflows (payments) and inflows (collections) of money are reflected , based on the operations that the company calculates to carry out in a certain time. It acts as a control instrument for the company’s treasury in order to inform about the short-term financing needs and the liquidity situation of the project.
At the time of making it, it will be known in advance if with the anticipated charges it will be possible to meet the estimated payments.
It is necessary to take into account that frequently it is necessary to ensure that the company does not lack capital and can respond to all its payment obligations and thus avoid unpleasant situations such as suspending payments.
Therefore, if by creating the treasury plan the money needs that the company may have at specific times are known in advance, it will be possible to think about solving said problem with more peace of mind. As a variable, you can resort to some type of short-term financing , such as:
- Carry out a discount for prompt payment for customers who are sold on credit in order to pay in cash.
- The bank is asked for a credit policy or an account, or an advance of the amount owed especially to those customers who have been sold on credit (through commercial papers or documents that said financial institution has the ability to discount ).
A concept related to the treasury plan is that of liquidity , both must go hand in hand perfectly. Liquidity must have tools to be used based, among which the financing of the company is taken into account .
It is important that all these elements are taken into account when preparing the treasury plan. In the case of being in the first year of operation, the treasury plan must show monthly annotations of the economic activity of your company, or at least quarterly.
As time goes by, in subsequent years, the usual thing is to do annual planning. In this way the times are managed.
Examples of treasury plan
- Model 1
- Model 2
- Model 3
- Model 4
- Model 5
When it comes to structuring the treasury plan, it is more complicated. The only thing that must always be taken into account in a treasury plan are the following guidelines:
- Investment receipts and payments: as receipts in this section, those of sales for non-current assets, tangible or intangible fixed assets and financial investments will be noted. As a mode of payment is the acquisitions of fixed assets.
- Export receipts and payments : in a part is what is going to be received from customer payments, having the expiration dates. Elsewhere, payments for supplies, purchases, payroll, taxes and social security.
- Financing collections and payments: it is necessary to note the collection in the event that any credit-type financial instrument is granted. Facing on the one hand returns, loans and credit payments, with the representation of the global amount that is developed, differentiating between interest and principal.
If you have a well-focused treasury plan and the appropriate controls, you are guaranteed the success of your company.