Finance
Cash Management and Treasury Controls for Group Companies
By ATTPL HOLDCO / ATTPL GROUP Editorial Team · · 3 min read
Practical treasury controls for multi-company groups: cash visibility, bank mandates, payment approvals, forecasting, idle funds and fraud prevention.
Why treasury needs extra care in a group
Each company in a group has its own bank accounts, payables and receivables. Without central visibility, one company may borrow at high cost while another holds idle cash, payments may be approved by the wrong person, and fraud can go unnoticed. Good treasury controls protect cash and make better use of it.
The goal is simple: know where the money is, control how it leaves and plan what is needed next.
Build daily cash visibility
- Maintain a list of every bank account across group companies, with purpose and signatories.
- Close accounts that are no longer needed.
- Prepare a daily or weekly cash position report for the whole group.
- Use bank statements or banking dashboards rather than manual balances.
Control how money leaves
- Set clear payment approval limits by amount and type, with two-person approval for larger payments.
- Separate duties: the person who creates vendor records should not approve payments to them.
- Verify any change in a vendor's bank details through a call to a known contact before paying.
- Review bank mandates when people join or leave.
Payment fraud using fake emails asking to change bank details is common. A simple call-back rule prevents most of it.
Simple controls that make a big difference
Many treasury failures in small and mid-sized groups come from weak basics rather than complex fraud. A few habits prevent most problems:
- Reconcile every bank account at least weekly, not only at month end.
- Use positive pay or similar bank features for high-value cheques where available.
- Keep cheque books and banking tokens in safe custody, with a register.
- Turn on SMS and email alerts for every debit above a set amount.
- Restrict internet banking access to named users with individual logins and multi-factor authentication.
- Review the list of users with banking access every quarter.
These controls cost little but make it much harder for errors or fraud to go unnoticed.
Reporting to management and the board
Treasury information should reach decision makers in a form they can act on. A one-page monthly report for the board can show group cash, borrowings and undrawn limits by company, the cash forecast for the next quarter, overdue receivables above a threshold and any exceptions to the treasury policy. When everyone looks at the same numbers, conversations about investment, dividends and new borrowing become faster and better informed.
Receivables: the other half of cash management
Cash management is not only about controlling payments. In many groups, the biggest improvement comes from collecting money faster. Agree clear credit terms with customers, invoice promptly and accurately, and follow up before the due date rather than after. Track overdue amounts by customer and by company every week, and escalate long-overdue accounts early.
For MSME suppliers, the law provides protection against delayed payments by buyers, and digital invoice discounting platforms can convert receivables into cash. Within the group, avoid letting sister companies delay payments to each other indefinitely; treat intercompany dues with the same discipline as outside customers, so that each company's cash position reflects reality.
Forecast and plan
A rolling 13-week cash flow forecast for each company shows shortfalls early. Combine it into a group view to decide whether one company can fund another — through properly documented intercompany loans, as explained in our intercompany agreements checklist. Our article on capital allocation in diversified businesses covers longer-term decisions.
Use idle cash wisely and manage borrowing
Keep a safety buffer, then place surplus funds in low-risk, liquid instruments according to a written board-approved policy. On the borrowing side, track interest rates, covenants and renewal dates for every facility. ATTPL Finance can help businesses compare working capital and term loan options.
Review regularly
Internal audit should test treasury controls at least once a year; see our guide on internal audit for group companies. For help setting up group finance processes, contact us.
Frequently asked questions
What is a cash position report?
A short report showing balances across all bank accounts, expected receipts and payments, so management knows the cash available today.
How can businesses prevent payment fraud?
Use two-person approvals, separate duties and always verify bank detail changes by calling a known contact.
Should group companies pool cash?
Some groups centralise cash, but transfers between companies must follow company law, tax rules and documented agreements. Take professional advice first.
Sources and further reading
This article is general information, not financial or legal advice.
