Treasury is the area of a company where actions related to monetary flow operations are managed.

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Therefore, the concept of treasury is understood as the set of activities related to company accounting in which bank or cash records are taken into account. Thus, treasury directly reveals a company’s payments and collections.

Treasury in accounting

Treasury and other related accounts are found in Group 5 → Subgroup 57.

The accounts are:

• 570. Cash, euros
• 571. Cash, foreign currency

Which reflect the availability of liquid means in cash and will appear in the current assets of the balance sheet.

The accounts:

• 572. Banks and credit institutions current account, euros
• 573. Banks and credit institutions current account, foreign currency
• 574. Banks and credit institutions, savings accounts, euros
• 575. Banks and credit institutions, savings accounts, foreign currency

Which will contain the balances in favor of the company, in current accounts and savings accounts of immediate availability in Banks and Credit Institutions.

They will appear in the current assets of the balance sheet.

And finally, the account:

• 576. Short-term investments of high liquidity

Which reflect financial investments convertible to cash, with a maturity not exceeding three months from the acquisition date, that do not have significant risks of value change and that are part of the company’s normal treasury management policy.

It will appear in the current assets of the balance sheet.

Difference between treasury and accounting

Both concepts are linked and frequently confused, but they are not the same.

Treasury is responsible for managing collections and payments, while accounting is responsible for recording inflow and outflow movements.

We hope this information is very useful to you.