What Is a Certified Treasury Professional?

Certified treasury professional is a type of designation awarded by the Association for Financial Professionals to individuals who are experienced in cash management and who pass an exam demonstrating their expertise. Successful applicants earn the right to use the CTP designation with their names for three years, which can improve job opportunities, professional reputation, and pay.

Some estimates show salaries of those with CTP accreditation being 16% higher than their peers’ earnings. Every three years, these professionals must complete 36 hours of continuing education (called recertification credits) and pay a fee to continue using the designation.

Understanding a Certified Treasury Professional

To work in the cash management industry, a background in finance and/or accounting is helpful. CTP applicants become experts in treasury management. CTPs should understand revenue collection, obligation payment, cash processing, reconciliation, managing current accounts, maintaining documentation, monitoring transactions, forecasting, and monitoring cash flow, receiving and processing wire transfers, analyzing financial statements, and more.

Applying to Become a Certified Treasury Professional

In order to be a candidate for this certification, an individual must have at least two years of full-time employment in a role in cash or treasury management, corporate finance, or such related areas as accounting, investor relations, economics, or financial risk management. The candidate may alternatively have one year of work experience in those fields coupled with a graduate-level or master’s degree in business or finance. Yet another alternative is to have one year of work experience along with two years of at least full-time college-level teaching experience in the finance-related curriculum.

The exam for the certification is closed book, can be completed on a computer, and is multiple choice.

Records of the applicant’s work experience and academic qualifications must be submitted to the Association for Financial Professionals prior to taking the exam. The certification committee within the association reviews and determines whether or not an applicant is qualified to take the exam. Some universities offer training programs to prepare would-be applicants for the exam. The curriculum may aim to teach the candidates working capital strategies for managing liabilities and assets, how to optimize capital structure, and how to maintain an organization’s liquidity to meet their future obligations. They might also learn how to monitor and control a company’s exposure to potential financial and operational risks. Such classes may include real-life case study scenarios for students to apply their developing knowledge.

The CTP designation is used as a sign of credibility among corporate treasurers and other professionals in the financial industry.