Treasury
In one sentenceThe function in the business responsible for cash, bank accounts, financing, short-term investment and dealing with banks.
Simply put
In a small business the accountant plays the treasury role, while in a large one it is a separate department that monitors bank balances daily and negotiates facilities.
It is better to separate it from accounting: whoever moves cash should not record or reconcile it. This is one of the most important controls.
Example
A group of companies with accounts at several banks appoints a treasury officer who collects their balances every morning, moves the surplus to a short deposit, and tracks the due dates of loan repayments and letters of guarantee.
Don't confuse it with
Petty cashPetty cash is a small amount for daily expenses, while treasury is a function that manages all cash and financing.