What’s on International Treasurer’s radar screen this week.
Several stories are developing as a result of this week’s International Treasurer editorial meeting. In the coming months we will explore cash-flow forecasting using as a basis a recent Ernst & Young survey, as well as profile a company called IdenTrust, which helps keep bank account signer information secure. Other topics include companies that are happy with the current US corporate tax code and also a look at the fees banks charge for FX trading – some think they are being overcharged.
Corp. vs. corp. on tax
President Obama is talking about reforming the corporate tax code, however, not all companies are looking for breaks. Some companies pay well over the 35 percent tax code, some pay well under. What do some companies have for a tax plan that others don’t?
Suspicions over FX charges
According to the Wall Street Journal, large US financial firms may have been overcharged by banks for FX trades. This has been a suspicion expressed at several NeuGroup meetings. For instance, some members of the Tech20 Treasurers’ Peer Group have mentioned they felt that FX systems utilize benchmark rates that are more favorable to the bank and not the client.
Bank account signer security
Part of the upcoming Engineering & Construction Treasurers’ Peer Group (E&CTPG) meeting will be a discussion of protecting the identity of bank account signers. Many companies face this problem when their account signers are abroad, particularly in developing countries, and banks often want very personal identification. How are treasurers protecting their company employees and themselves?
Post-M&A practices
Companies within The NeuGroup universe continue to talk about the importance of quickly and efficiently incorporating a newly acquired company (see related story here). It will be a topic of discussion at several upcoming peer group meetings. One area within this topic is whether treasuries review any of the acquired company’s treasury best practices. In a pre-meeting survey of E&CTPG, 77 percent said they review the acquired company for better treasury practices.
Cash-flow forecasting
Recently, E&Y conducted a survey on treasury strategies. One question asked respondents if their companies forecast their cash flow and whether there was a strong emphasis on improving data in order to improve forecasts. This is always a popular topic for NeuGroup peer groups (see related story here). E&Y also asked respondents how the crisis had affected the treasury role and function within organizations. The highest ranked responses included increased focus on accuracy of cash-flow forecast, an increased focus on short-term liquidity and increased focus on cash visibility and access.