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Difference between Treasurer and Financial Secretary
Accurate financial reporting is crucial to the smooth running of any business. Capital expenditures, income data, balance sheets, and cash flow are only some of the financial records that any business must keep accurately, no matter its size. Accurate financial reporting aids businesses in being more honest about their finances, finding areas for growth and improvement, exploring new business opportunities, cutting down on costly mistakes, and outlining organizational structures. Depending on the organizational structure, several experts, including a treasurer and a financial secretary, facilitate this process. Despite their frequent synonymy, there is a difference between these two names.
Who is a Treasurer?
This refers to the members of an organization's staff tasked with keeping an eye on the finances. In a company, the treasurer is one of the members who, together with others, is responsible for safeguarding the group's financial well−being.
The following are some of the responsibilities of a treasurer −
Oversees and manages the company's financial operations, including making sure that all relevant financial systems are running smoothly.
Make sure the money is handled following the law.
Manage and keep track of financial resources for an organization.
Put yourself in control of the organization's money. This entails guiding the fundraising strategy and ensuring it abides by the organization's guidelines and any relevant regulations.
Creates a report detailing the company's financial standing and delivers it to upper management
Facilitates the Board's understanding of financial concerns and investment prospects.
Create dependable processes for managing money, including making and recording payments, keeping track of receipts and expenses, dealing with cash in tiny quantities, and managing bank accounts.
Make sure proper documentation is created and retained.
Establish reliable procedures for handling financial matters such as payments, accounting, the handling of small cash amounts, and bank account administration.
Ensure that accurate records are kept and maintained in the appropriate manner.
The majority of the treasurer's financial responsibilities may be delegated to lower−level personnel, depending on the size and structure of the business.
Who is a Financial Secretary?
This person will operate under the supervision of the finance manager and report directly to the treasurer to ensure that all financial obligations are satisfied.
The following are some of the responsibilities of a financial secretary −
In charge of handling cash and keeping track of all financial transactions.
Payouts and reimbursements need to be managed.
Reconcile the books once a month and once a year and report your results.
Deposit funds into the business's checking and savings accounts.
Make necessary payments in line with the instructions of the treasurer or financial manager.
Follow the specified procedures to ensure the organization's financial records can withstand an audit.
Differences: Treasurer and Financial Secretary
Both ensure that a company's financial policies are carried out as intended. The following table shows how a Treasurer is different from a Financial Secretary −
| Characteristics | Treasurer | Financial Secretary |
|---|---|---|
| Duties | Budgeting, managing funds, maintaining regulatory compliance, advising the board of directors on financial indicators, and establishing effective financial systems are just some of the many duties that fall within the purview of an organization's treasurer. | Among the many duties of a financial secretary are the following− receiving and documenting monetary transactions; reconciling these transactions; creating monthly and annual reports; creating payment authorizations; and ensuring that the organization's financial records conform to requirements. |
| Complexity of work | A high degree of education and experience is required for the challenging role of treasurer. | A financial secretary's duties tend to be less complex and require fewer advanced skills and knowledge. |
| Decision−making | The board of directors gets financial reports from the treasurer, who often has a lot of input in major financial decisions. | The treasurer or the finance manager is the one to who the financial secretary reports for decisions. The finance secretary's authority to make decisions is constrained. |
Conclusion
Budgeting, managing funds, maintaining regulatory compliance, advising the board of directors on financial indicators, and establishing effective financial systems are just some of the many duties that fall within the purview of an organization's treasurer. Decisions are heavily influenced by them, and the complexity of the work necessitates a higher standard of training and education.
A financial secretary, on the other hand, is accountable for ensuring that a company's financial records are accurate and up−to−date, as well as for receiving and recording monetary transactions, reconciling accounts, creating monthly and annual reports, authorizing payments, and confirming compliance with company policy. Decisions that might seriously impact the company's bottom line are rarely up for grabs. Despite their differences, each of these jobs is crucial to the day−to−day operations of any company.
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