A treasury analyst is an important role at any company that deals with extensive cash flow, debts, banking, and critical assets. Treasury analysts are charged with managing business funds and transactions.
A treasury analyst can expect to make between $49,000 to $142,000 per year*, but that’s dependent on experience and the value of the assets they manage. Today we’re sharing all the details about a career in treasury management – from salary to job responsibilities.
*Data is based on publicly available information on Glassdoor for all listed businesses and is not a reflection, nor a guarantee of, salary ranges at BILL.
What does a treasury analyst do
The root of a treasury analyst’s job is monitoring a company’s money. Treasury analysts will manage detailed and up-to-date records of every transaction, asset, debt, loan, investment, and other relevant financial information for business operations.
The job of a treasury analyst is to ensure that a company always has the cash flow and value it needs to function at healthy levels.
The treasury analyst position varies as much as the unique treasuries of each company. Some exist with high levels of capital or venture funding—others rely on lending and investments for cash flow. Each treasury analyst job will need to apply a wide range of skills to accomplish the duties needed for their own treasury management, according to Job Hero.
Roles and responsibilities of a treasury analyst
The treasury analyst takes on many different financial responsibilities, but the role goes beyond that. These are the responsibilities you can expect in this role.
Create treasury reports (monthly, quarterly, yearly)
Treasury analysts are responsible for compiling, analyzing, and presenting financial data through regular treasury reports.
Treasury reports are how treasury analysts tell the story of what has happened in a given month, quarter, or year. It compiles financial reports, metrics, projections, and actuals that report on historical performance and inform future strategy.
Manage cash flow and daily transactions
Cash runs through the business in the form of revenue and expenses. It’s the responsibility of the treasury analyst to make sure these cash flows are balanced and used efficiently.
Daily responsibilities may involve reconciling transactions, monitoring budgets, forecasting short-term cash requirements, and managing payment schedules. The focus is on the timing of these transactions so a business always has sufficient cash on hand and doesn’t find itself in a crunch.
Select financial technology and documentation methods
Given that the treasury analyst will use the financial management platforms, they’re responsible for selecting the technology and documentation methods used. This may also include standardizing workflows and reporting practices to ensure consistency.
The business may also leverage the treasury analyst to consult on payment platforms and other tools based on the costs and benefits.
Assess risk and predict future cash flow
A treasury analyst is responsible for reporting on and mitigating some of the following risk types:
- Cash flow risk - when the timing of cash inflows and outflows are suboptimal, putting the business at risk of insufficient cash
- Liquidity risk - lacking the working capital for the upcoming vendor and debt payments
- Counterparty risk - evaluating the financial stability of potential partners
- Currency risk - the potential risks of using and holding foreign currency in international operations
- Interest rate risk - minimizing the potential harm of fluctuating interest rates
Throughout all of these risk types is the importance of predicting future cash flows, highlighting when the business may be at risk of insufficient cash on hand.
Manage foreign exchange transactions and assets
For international operations, the treasury analyst is responsible for protecting the business’s assets across the portfolios held in foreign currencies. This includes monitoring exchange rates and managing the cash held in each currency to maximize the value to the business.
An example of this in action would be setting a cash on hand limit in one foreign currency because of predicted exchange rate volatility.
Report on financial health to leadership
While leadership needs to know about the financial health of the business, they may not have the financial know-how or time to dig deep into the reports. The treasury analyst would prepare documents (like an executive summary or one pager) that give everyone access to need-to-know information without the nitty-gritty details.
Ensure compliance with regulations and taxation
Violating a regulation or not staying up-to-date on tax responsibilities causes massive headaches for businesses. Treasury analysts prevent this by understanding reporting requirements, financial regulations, and tax codes to ensure the business is compliant.
Recommend investments
When a business has idle cash that can be used to generate value, it turns to the treasury analyst to provide recommendations for investments. This means finding the short-term and long-term instruments the business can most benefit from while adhering to its risk tolerance levels and liquidity needs.
Mentor entry level finance professionals
In some organizations, the treasury analyst mentors entry-level finance professionals, passing on their expert experience. They do this by advising entry-level employees on the technical aspects of the job (such as reporting requirements and regulatory compliance) in addition to coaching on reporting, communication, and career progression.
Consult on mergers and acquisitions
Consulting on mergers and acquisitions is unique to treasury analysts with seniority and experience. Their recommendations are grounded in both technical evaluation (reporting on the financial health of the targeted acquisition) and opinionated analysis.
Post-merger, the treasury analyst may be responsible for reporting on its financial impacts in addition to providing advice on how to best consolidate assets and costs across the businesses. Ultimately, they do what they can to keep the transition smooth financially.
How to become a treasury analyst
The route to a lucrative job as a treasury analyst is relatively straightforward and can be an easy achievement for a finance-minded professional.
Education
A business-centered degree (finance, accounting, business, economics or statistics will have an advantage) from an accredited school is the generally accepted minimum requirement for job candidates. However, there are a lot of small adjustments and additions that can make a candidate much better qualified.
Experience
Internships in banking, financial planning, risk management, supply chain, or other financial analysis roles are beneficial. One to three years of experience in finance may be required before landing a treasury analyst job, such as bookkeeping, auditing, accounting, or even sales.
Jobs
Getting a job as a treasury analyst is only part of becoming a successful career treasury analyst.
Finding a job with sponsorship and advancement opportunities is key, especially if you have ambitions of becoming a senior treasury analyst or beyond. With sponsorship, you’ll get opportunities to further your education and get additional certifications that can be used for career advancement.
Mentorship
It’s a good idea to ask about what mentorship opportunities are included as part of the treasury analyst role. Working closely with a senior treasury analyst, VP of Finance, or CFO is necessary for the advancement of entry-level treasury analysts.
Certifications
Becoming a Chartered Financial Analyst is the most popular certification and requires professional experience and exams.
A Financial Industry Regulatory Authority license may also be necessary if the treasury analyst needs to sell financial products and services.
Furthermore, many companies require or will sponsor an MBA candidate to serve as senior treasury analyst.
Advancement
Getting the role of a treasury analyst can be a stepping stone to future opportunities. Treasury analysts with years of experience may be well-suited for future roles as VP of Finance or even CFO with the appropriate certifications.
Treasury analyst skills & qualities
A successful treasury analyst can really grease the wheels of any business operation, so it’s important to find someone with the ideal skills, traits, and qualities to fill the role.
A strong financial background can prepare you for most professional finance jobs, but specialization can benefit everyone. Business Student reports the desirable skill sets for a treasury analyst:
- Financial Analysis – mathematical calculations, projections
- Technology & Organization – use of software and data management systems
- Communication – verbal, written, presentation
- Executive Skills – decision making, attention to detail
A treasury role will be more stable and less chaotic than other roles in finance, so this can be a great specialization for a finance professional looking for a lower-stakes, less demanding role than other financial leadership careers.
How much does a treasury analyst make?
Treasury analysts enjoy a salary above market average, with great job security and plenty of growth within the job field. Entry- level treasury analysts may begin anywhere from $45-55,000 a year, but the trajectory for experience, education, certification, and factors like the size of the company can find treasury analyst salaries in the six figures.
- Entry Level Treasury Analyst: $45,000-55,000
- Average & Median Treasury Analyst Salary: $58,000-68,000
- Treasury Analyst 5-10 years experience: $62,000-75,000
- Senior Treasury Analyst: $70,000-100,000+
Location can be a significant factor in treasury analyst salary. Financial sectors such as San Francisco, New York, Boston, Los Angeles, and big Texas cities will deliver higher salaries (but often a higher cost of living, too).
Another factor in treasury analyst salary is the existence of bonuses or profit sharing. So, as a treasury analyst, if you recommend investments or methods that increase revenue or save money, you might enjoy higher levels of extra compensation throughout the year. Education and certifications can also earn you more money as a treasury analyst.
TRY THIS: Use this online tool to see a targeted prediction of treasury analyst salary for the parameters you set. This can be helpful for salary negotiation, hiring, and career path decisions.
Treasury analyst certification
The most popular certification for a treasury analyst is Chartered Financial Analyst, but you may also consider becoming a Certified Treasury Professional or complete an MBA.
- Chartered Financial Analyst – designation from CFA institute, requiring a bachelor’s degree, four years of work experience, and passing a series of difficult exams
- Certified Treasury Professional – designation from AFP for cash management, requiring two years of treasury management and passing a single exam
- Masters of Business Administration – graduate degree earned from an accredited university, may be completed in addition to full time employment
As a financial manager, you may consider grooming individuals for financial roles such as treasury analyst by sponsoring certification or further education for promising employees. Creating an effective treasury analyst role in a business can set up future financial success that benefits everyone.
How Treasury Analysts can leverage automation to help their roles
A treasury analyst’s time is best used flexing their analytical and reporting skills. But their time can easily get eaten up by menial reconciliation and reporting tasks.
It’s best practice to invest in automation that can process the menial tasks, freeing up time to do higher-value work. This means using automation tools to manage responsibilities like:
- Cash flow forecasting
- Bank reconciliations
- Payment processing
- Report generation
- Scenario analysis and stress testing
- Budget planning
With a platform like BILL, you get a full suite of financial tools built to save time and automate the time-consuming manual tasks that don’t generate value. From payment processing to expense and budget management, you’ll free up your workload to focus on the things that really matter.
Treasury analyst FAQ
What experience is needed for a treasury analyst role?
Entry level roles may look for 1-3 years of prior experience in finance-related roles or internships. This includes roles in accounting, bookkeeping, auditing, or an analysis-based role.
Where do treasury analysts typically work?
The role of a treasury analyst is incredibly flexible and universal across industries. Corporations, banks, investment firms, government agencies, and nonprofits all need the analytical skills of a treasury analyst. With the right certifications and experience, it’s possible to find roles in the industry that’s right for you.
What tools are used in a treasury analyst role?
A treasury analyst should have skills in Excel, accounting software (like QuickBooks or Xero), financial management platforms, and treasury management systems (TMS).
What is the career path for a treasury analyst?
The career path for a treasury analyst typically starts with a role in finance or accounting. Once they’ve accrued some years of experience and the necessary certifications, they’ll start in an entry-level or junior treasury analyst role before progressing to a senior treasury analyst, treasury manager, and director of treasury.
From there, treasury analysts can pivot into other executive finance roles, like being a CFO.
