treasury policy template startup

Prompt

treasury policy template startup

DeepSeekDeepSeek

treasury policy template startup

Of course. Here is a comprehensive Treasury Policy Template designed specifically for a startup. It's structured to be scalable, starting with foundational principles and evolving as the company grows.

Important Disclaimer

This template is for informational purposes only and does not constitute legal or financial advice. You should consult with a qualified financial advisor and legal counsel to tailor a policy that fits your specific jurisdiction and business model.

[Your Startup Name] - Treasury Policy

Effective Date: [Date]
Policy Owner: [CFO/Head of Finance/CEO]
Approved By: [Board of Directors/CEO]

1.0 Purpose and Objectives

The purpose of this Treasury Policy is to establish a formal framework for managing the financial assets and liabilities of [Your Startup Name]. The primary objectives are to:

Ensure Liquidity: Maintain sufficient cash and credit facilities to meet all operational and strategic funding requirements.

Preserve Capital: Protect the company's capital from undue financial risk, including fraud, counterparty failure, and market volatility.

Optimize Returns: Maximize the return on idle cash within the constraints of safety and liquidity.

Mitigate Financial Risk: Identify, assess, and manage key financial risks, including foreign exchange, interest rate, and credit risk.

Ensure Compliance: Maintain compliance with all relevant laws, regulations, and internal controls.

Support Strategic Goals: Provide a stable and predictable financial foundation to support the company's growth and strategic initiatives.

2.0 Scope

This policy applies to all cash, cash equivalents, short-term investments, debt, and financial risk management activities of [Your Startup Name] and its subsidiaries.

3.0 Roles and Responsibilities

Board of Directors: Has ultimate responsibility for overseeing the company's financial health. Must review and approve this policy at least annually.

CEO/CFO: Has primary responsibility for the implementation and execution of this policy. Authorizes transactions within the limits defined herein.

Finance Team: Responsible for the day-to-day execution of treasury operations, including cash positioning, reconciliation, and reporting.

All Employees: Must adhere to internal controls, especially those related to expense reporting and corporate card usage.

4.0 Cash Management

4.1 Bank Accounts

All bank accounts must be opened in the name of [Your Startup Name].

Account opening and closing require written approval from the [CFO/CEO].

Primary operating accounts will be held with [e.g., SVB, Mercury, Brex, J.P. Morgan] or other reputable, well-capitalized institutions.

A centralized bank account structure will be maintained to optimize cash pooling and visibility.

4.2 Cash Flow Forecasting

A rolling 13-week cash flow forecast will be maintained and updated weekly.

A long-term (12-18 month) cash flow forecast will be maintained and updated monthly.

The CFO is responsible for presenting the forecast to the executive team and board.

4.3 Liquidity Buffer

The company will maintain a minimum liquidity buffer equivalent to [3-6] months of projected operating burn rate in cash or cash equivalents.

The target buffer amount is [$X] and will be reviewed quarterly.

5.0 Investment Policy

The primary goal for investing idle cash is the preservation of capital and maintenance of liquidity. Return on investment is a secondary objective.

5.1 Permissible Investments

Tier 1 (Highest Safety & Liquidity):

FDIC/NCUA insured demand deposit accounts (up to insured limits).

U.S. Treasury bills, notes, and bonds.

Prime money market funds investing exclusively in U.S. government securities.

Tier 2 (Diversified Safety - requires CFO approval):

High-quality commercial paper (rated A-1/P-1 or better).

Certificates of Deposit (CDs) from top-tier U.S. banks.

Note for Startups: Initially, the policy may restrict all investments to Tier 1 only until a larger treasury portfolio is established.

5.2 Prohibited Investments

The company is expressly prohibited from investing in:

Equity securities (stocks)

High-yield (junk) bonds

Cryptocurrencies or other digital assets (for treasury purposes)

Derivatives or speculative instruments

Any investment with a maturity greater than 24 months.

6.0 Debt and Financing Management

The company's debt strategy is to maintain financial flexibility and secure cost-effective funding for growth.

Any new debt commitment, line of credit, or financing arrangement exceeding [$50,000] requires prior approval from the Board of Directors.

The company will target a debt-to-equity ratio of no more than [e.g., 0.5:1].

7.0 Payment Authorization and Controls

7.1 Approval Matrix

All disbursements require approval based on the following thresholds:

Payment Amount	Required Approver(s)
Up to $5,000	Manager
$5,001 - $25,000	Director / VP
$25,001 - $100,000	CFO
Over $100,000	CEO & Board of Directors

7.2 Segregation of Duties

The individual initiating a payment request shall not be the same individual approving the payment.

Bank account reconciliations shall be performed by someone not involved in the payment initiation or approval process.

8.0 Financial Risk Management

8.1 Counterparty Risk (Bank/Custodian Risk)

No more than 50% of the company's total cash and investments shall be held with a single financial institution.

All banking partners must be well-capitalized (e.g., minimum credit rating of [e.g., A-] from a major rating agency, if applicable).

8.2 Foreign Exchange (FX) Risk

(If applicable) The company will natural hedge FX risk where possible by matching revenue and expense currencies.

Any hedging of material FX exposure (e.g., >$100,000) requires prior approval from the CFO and a documented strategy.

8.3 Interest Rate Risk

Given the short-term nature of permissible investments, interest rate risk is considered low and will be monitored by the CFO.

8.4 Fraud Risk

All electronic payment protocols (e.g., ACH, wire transfers) must use dual-factor authentication.

Positive pay services will be utilized where available.

9.0 Corporate Card and Expense Policy

All corporate cardholders must adhere to the separate [Company Name] Expense Reimbursement Policy.

Personal expenses are strictly prohibited on corporate cards.

Expenses must be reported and reconciled within [30 days].

10.0 Reporting and Review

Daily: Cash position report to the CFO/CEO.

Weekly: Updated 13-week cash flow forecast.

Monthly: Treasury report to the Board including:

Cash and investment balances.

Cash burn rate and runway.

Compliance with this policy.

Status of key treasury initiatives.

This Treasury Policy shall be formally reviewed and re-approved by the Board of Directors at least annually, or more frequently if business conditions change significantly.

Getting Started: A Phased Approach for Your Startup

Phase 1: Survival (Pre-Seed/Seed)

Focus: Don't run out of cash.

Actions: Open one main operating account. Implement the Payment Authorization Matrix (even if it's just Founder approval for everything). Start a simple weekly cash forecast in a spreadsheet. This policy itself is a huge step forward.

Phase 2: Stability (Series A)

Focus: Build processes and controls.

Actions: Formalize this policy with your board. Open a second bank account for redundancy. Start investing idle cash in Tier 1 instruments (e.g., Treasury money market funds). Implement an expense management tool (like Ramp, Brex, or Expensify).

Phase 3: Scale (Series B and Beyond)

Focus: Optimize and professionalize.

Actions: Consider a multi-bank structure with cash concentration. Explore more sophisticated investment options (Tier 2). Formalize FX hedging if international expansion occurs. Potentially hire a dedicated Treasury Manager.

11:53

GrokxAI

treasury policy template startup

Creating a treasury policy for a startup is an essential step to manage financial resources effectively, ensure liquidity, mitigate risks, and comply with regulatory requirements. Below is a Treasury Policy Template tailored for a startup. You can customize it based on your startup's specific needs, industry, size, and financial strategy.

Treasury Policy for [Startup Name]

Effective Date: [Insert Date]
Last Revised: [Insert Date]
Approved By: [Board of Directors/CEO/CFO Name]

1. Purpose

The purpose of this Treasury Policy is to establish a framework for the management of [Startup Name]'s financial resources, including cash, investments, debt, and financial risks. This policy aims to ensure the company's liquidity, safeguard assets, optimize returns on idle funds, and comply with applicable laws and regulations.

2. Scope

This policy applies to all financial activities related to cash management, investments, banking relationships, debt management, and foreign exchange (if applicable) conducted by [Startup Name]. It covers all employees, contractors, and third parties involved in financial decision-making or transactions on behalf of the company.

3. Objectives

The treasury function at [Startup Name] will focus on the following objectives:

Liquidity Management: Ensuring sufficient cash is available to meet operational and strategic needs.

Risk Mitigation: Minimizing financial risks, including currency, interest rate, and counterparty risks.

Cost Efficiency: Optimizing banking fees, transaction costs, and funding costs.

Asset Protection: Safeguarding the company's financial assets through prudent investment and cash management practices.

Regulatory Compliance: Adhering to relevant laws, tax regulations, and accounting standards.

4. Roles and Responsibilities

4.1 Treasury Oversight

The [CFO/Finance Lead/Founder] is responsible for overseeing the treasury function and ensuring compliance with this policy.

Major financial decisions (e.g., investments above [specific threshold], borrowing, or foreign exchange transactions) must be approved by [Board of Directors/CEO/CFO].

4.2 Delegation of Authority

Day-to-day treasury operations may be delegated to [specific role, e.g., Finance Manager], with limits on transaction amounts as follows:

Cash transactions up to [$X] can be approved by [Role].

Transactions above [$X] require approval from [CFO/CEO].

All transactions must be documented and reported monthly to [CFO/Board].

5. Cash Management

5.1 Cash Flow Forecasting

A monthly cash flow forecast will be prepared by [Finance Team] to predict cash inflows and outflows for the next [3-6 months].

The forecast will be reviewed and updated [weekly/monthly] to reflect changing business conditions.

5.2 Bank Accounts

All bank accounts must be opened in the name of [Startup Name] and approved by [CFO/CEO].

Separate accounts will be maintained for operational expenses, payroll, and reserve funds (if applicable).

Authorized signatories for bank accounts will be limited to [specific roles, e.g., CFO and CEO], with dual signatures required for transactions above [$X].

5.3 Cash Reserves

The company will maintain a minimum cash reserve equivalent to [X months] of operating expenses to cover unforeseen expenses or revenue shortfalls.

Excess cash beyond immediate needs may be invested per the guidelines in Section 6.

6. Investment Guidelines

6.1 Investment Objectives

The primary objective of investments is capital preservation, followed by liquidity and return on investment.

Investments will prioritize safety over speculative gains.

6.2 Approved Investment Instruments

Excess funds may be invested in low-risk instruments such as:

Bank fixed deposits.

Treasury bills or government bonds.

Money market funds with high credit ratings.

Speculative investments (e.g., cryptocurrencies, stocks, or derivatives) are prohibited unless explicitly approved by [Board of Directors].

6.3 Investment Limits

No more than [X%] of total cash reserves will be invested in a single instrument or with a single counterparty.

Investment decisions above [$X] must be approved by [CFO/Board].

7. Debt Management

7.1 Borrowing Policy

Borrowing will only be undertaken to fund critical business needs, such as working capital or capital expenditures, and must be approved by [CFO/Board].

The company will prioritize low-cost borrowing options and avoid over-leveraging.

7.2 Debt Limits

Total debt will not exceed [X%] of annual revenue or [specific financial ratio, e.g., Debt-to-Equity ratio of Y:1] unless approved by [Board of Directors].

7.3 Repayment and Monitoring

A repayment schedule will be established for all loans, with regular updates provided to [CFO/Board].

Interest rate risks will be monitored, and fixed-rate loans will be preferred where possible.

8. Financial Risk Management

8.1 Foreign Exchange Risk (if applicable)

If the company operates in multiple currencies, foreign exchange exposure will be monitored regularly.

Hedging instruments (e.g., forward contracts) may be used to mitigate currency risks, subject to [CFO/Board] approval.

8.2 Interest Rate Risk

Exposure to fluctuating interest rates on loans or investments will be minimized by prioritizing fixed-rate instruments.

8.3 Counterparty Risk

The company will only engage with reputable financial institutions with a minimum credit rating of [e.g., A or equivalent].

Regular reviews of counterparty exposure will be conducted by [Finance Team].

9. Banking Relationships

The company will maintain relationships with at least [X] banks to diversify risk and ensure access to banking services.

Banking partners will be reviewed annually based on fees, service quality, and financial stability.

All banking agreements must be approved by [CFO/CEO].

10. Reporting and Compliance

10.1 Financial Reporting

A monthly treasury report will be prepared by [Finance Team] and submitted to [CFO/Board]. The report will include:

Cash balances and cash flow forecasts.

Investment portfolio summary.

Debt repayment status.

Any financial risks or issues.

10.2 Audit and Review

Treasury operations will be subject to an annual internal review or external audit to ensure compliance with this policy.

This policy will be reviewed annually or as needed to adapt to the company's growth and changing financial needs.

10.3 Regulatory Compliance

All treasury activities must comply with local laws, tax regulations, and accounting standards (e.g., GAAP or IFRS).

Any non-compliance issues must be reported immediately to [CFO/Board].

11. Policy Violations

Any violation of this policy will be investigated by [CFO/Board], and appropriate disciplinary action will be taken, including potential termination of employment or legal action if fraud or misconduct is involved.

12. Approval

This Treasury Policy has been approved by:

Name: [CEO/CFO Name]
Title: [Title]
Date: [Insert Date]

Name: [Board Member Name, if applicable]
Title: [Title]
Date: [Insert Date]

13. Appendices (Optional)

Appendix A: List of Authorized Signatories for Bank Accounts.

Appendix B: Approved Banking Partners.

Appendix C: Investment Approval Form Template.

This template provides a comprehensive framework for managing a startup's treasury operations. However, startups often have unique needs, so consider consulting with a financial advisor, accountant, or legal counsel to ensure the policy aligns with your specific circumstances and complies with local regulations. Additionally, as your startup grows, you may need to update this policy to accommodate new financial instruments, international operations, or increased complexity.

11:53

MistralMistral AI

treasury policy template startup

Creating a treasury policy for a startup is crucial for managing financial resources effectively. Below is a template that you can customize to fit your startup's specific needs:

[Startup Name] Treasury Policy

1. Purpose

The purpose of this Treasury Policy is to establish guidelines for the management of [Startup Name]'s financial resources, ensuring the efficient and effective use of funds to support the company's growth and sustainability.

2. Scope

This policy applies to all financial transactions, cash management, investments, and financial reporting activities within [Startup Name].

3. Objectives

Liquidity Management: Ensure that the company has sufficient liquidity to meet its short-term and long-term obligations.

Risk Management: Minimize financial risks associated with cash management, investments, and financial transactions.

Compliance: Ensure compliance with all relevant laws, regulations, and internal controls.

Transparency: Maintain transparency and accountability in all financial transactions and reporting.

4. Responsibilities

Chief Financial Officer (CFO): Overall responsibility for the implementation and oversight of the Treasury Policy.

Treasury Manager: Day-to-day management of treasury activities, including cash management, investments, and financial reporting.

Accounting Team: Assist in financial reporting, reconciliation, and compliance with accounting standards.

Board of Directors: Approval of the Treasury Policy and oversight of its implementation.

5. Cash Management

Cash Flow Forecasting: Regularly prepare and update cash flow forecasts to ensure adequate liquidity.

Cash Collection: Implement efficient processes for collecting receivables and managing cash inflows.

Cash Disbursements: Establish controls for authorizing and monitoring cash disbursements.

Bank Accounts: Maintain appropriate bank accounts and ensure proper reconciliation of bank statements.

6. Investment Policy

Investment Objectives: Aim to preserve capital, maintain liquidity, and achieve a reasonable return on investments.

Investment Guidelines: Define the types of investments allowed (e.g., government securities, money market funds, corporate bonds) and the risk tolerance for each.

Investment Limits: Set limits on the amount of funds that can be invested in each type of asset.

Investment Review: Regularly review the investment portfolio to ensure it aligns with the investment objectives and guidelines.

7. Risk Management

Credit Risk: Implement measures to assess and manage credit risk associated with customers and suppliers.

Market Risk: Monitor and manage risks related to changes in interest rates, exchange rates, and other market conditions.

Operational Risk: Establish controls to mitigate operational risks, including fraud and errors in financial transactions.

8. Financial Reporting

Accuracy: Ensure that all financial transactions are accurately recorded and reported.

Timeliness: Prepare and submit financial reports in a timely manner.

Compliance: Adhere to all relevant accounting standards and regulatory requirements.

9. Internal Controls

Segregation of Duties: Ensure that duties are segregated to prevent errors and fraud.

Authorization Levels: Establish clear authorization levels for financial transactions.

Audit: Conduct regular internal audits to ensure compliance with the Treasury Policy and identify areas for improvement.

10. Review and Approval

Policy Review: Review the Treasury Policy annually to ensure it remains relevant and effective.

Approval: This policy must be approved by the Board of Directors and reviewed by the CFO and Treasury Manager.

11. Effective Date

This policy is effective as of [Date].

12. Revision History

Version 1.0: [Date] - Initial Policy

Version 1.1: [Date] - [Description of Changes]

Signatures

Approved by:

Chief Financial Officer:
_________________________
[Name]
[Date]

Board of Directors:
_________________________
[Name]
[Date]

This template provides a comprehensive framework for managing your startup's treasury activities. Customize it to fit your specific needs and ensure it aligns with your company's goals and regulatory requirements.

11:53

Analysis

This comparison demonstrates the different approaches each AI model takes when responding to the same prompt. Here are the key differences observed:

Response Characteristics

DeepSeek: Provides a direct response with 121 sentences.

Grok: Provides a direct response with 107 sentences.

Mistral: Provides a direct response with 49 sentences.

Key Takeaways

Each model brings unique strengths to this type of query
Response styles vary significantly between models
Consider your specific use case when choosing between these models

Try This Comparison Yourself

Want to test these models with your own prompts? Visit SNEOS.com to compare AI responses side-by-side in real-time.

This comparison was generated using the SNEOS AI Comparison ToolPublished: October 02, 2025 | Models: DeepSeek, Grok, Mistral