Management of Financial Resources: Benefits of Treasury Centralization, Stock Exchange Listing, and Budgetary Control Analysis

Manage Financial
Resources

INTRODUCTION
Management of Financial Resources is a technique which helps the organizations in
ensuring that they the management of financial resources can be done by them effectively and
efficiently (Bondarenko, Prus and Нranovskaya, 2019). This can lead towards the deriving of
conclusions and recommendations which can be quite helpful in the future. If an organization
focuses on it then this can lead towards the attainment of goals and objectives in the future
effectively and efficiently. Thus it is important for the financial managers of an organization to
ensure this so that the management of work is done properly. This report will make detailed
focus on benefits of treasury centralisation, company's proposal to minimize potential problems,
analysis of the financial information, reasons for considering stock exchange listing.
Additionally, budgetary control analysis will also be done as a part of this particular assignment.
MAIN BODY
Part A
Treasury Centralization refers to a system which is used widely in the organizations so
that they are able to ensure that the important decisions like financial decisions, cash
management, investment and foreign exchange etc. is done in a proper manner (Drumm and
Zeiss, 2018). In this technique, a unique team can be assigned so that the decisions related to
Treasury Centralization can be taken quite effectively and efficiently in the right manner. Thus
the proposal of BHP to make its use can help in ensuring that the right management of the
different types of financial resources can be done effectively and efficiently.
There are potential benefits of Treasury Centralization. Some of these benefits can be
explained in the following manner-
 Streamlining cash flow- With the use of Treasury Centralization that the streamlining of
cash flow is done in a proper manner (Eliçin, 2019). This helps in regulating the inflows
as well as outflows of the cash. This can be helpful for a company like BHP so that the
management of various sorts of needs and requirements is done in a right manner which
will help a lot in meeting them.
 Boosting of negotiating power and eliminating overlapping- Treasury Centralization
can result in ensuring that the negotiating power can be boosted and the overlapping can
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be avoided. In the context of BHP, it is quite helpful in making sure that the management
of financial resources properly.
 Optimization of liquidity- When the Treasury Centralization is carried out it can result
in ensuring that optimization of liquidity is done properly (Filin and et.al., 2020). In BHP,
it can help a lot in ensuring that the management of a wide variety of funds can be done
effectively and efficiently.
 Increase in efficiency- The use of Treasury Centralization is quite important in the
organizations because it can result in an increase in the overall level of efficiency. In the
context of BHP, it can be said that the overall level of efficiency can be raised in the right
manner when its use is made.
The subsidiaries of BHP may face problems due to the implementation of Treasury
Centralization. The company can propose the following solutions so that the problems can be
solved-
 Maintaining Proper Control- In BHP, a problem of Control can be faced because of the
implementation of Treasury Centralization. Thus, it can be said that by maintaining a
proper control the company can make sure that the problem faced by subsidiaries in
relation to maintaining proper control can be solved in a highly effective manner.
 Regulation of Financial position- In BHP, the overall regulation of financial position
can be done in order to make sure that the financial situation of the company can be
managed effectively and efficiently which will help in providing a solution to the
problem of financial irregularities in a highly effective manner which can be faced due to
the Treasury Centralization. Thus in this way a solution to this problem can be provided.
 Maintaining of Transparency- In BHP, the financial managers can make sure that they
can maintain a desired level of transparency which can allow them to be able to manage
the funds in a right manner (Grundy, Mazzarello and Bero, 2020). This level of
transparency can be helpful in ensuring that the organizations are able to take the various
types of financial decisions properly. This can solve the problem of lack of transparency
which can arise due to the Treasury Centralization.
 Proper Management of Cash- In BHP, the financial managers can make sure that by
properly managing the cash they can solve the problem related to liquidity which can
result due to Treasury Centralization. Thus in this way the company can make sure that
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