The investment of corporate cash is often overlooked as the duties and responsibilities of treasury professionals have expanded over the last decade. Treasury officers are now accountable for a number of activities including, disbursements, collections, borrowing, managing bank relationships, management of foreign currency exposures, insurance contracts, and, of course, the investment of corporate cash. With finite resources at their disposal, these officers often place investments of corporate cash at the bottom of their list.
To ease the investment process, you may wish to adopt a methodology for categorizing corporate cash by its usage. From a saver’s perceptive, it is appropriate to distinguish between operating cash and reserve cash. Read the article