Cash Pooling: A Cornerstone of Corporate Financial Resilience
Cash pooling is now a key tool in helping companies better withstand economic uncertainty and rising interest rates. It allows a group's cash flow to be centralized in order to use surpluses more efficiently and reduce recourse to debt. There are two models:
- Physical cash pooling, with actual money transfers,
- Notional cash pooling, based on virtual balancing of balances.
Well-regulated, this system secures internal cash flows and limits tax risks. It reduces financing costs by pooling the needs of subsidiaries and improving bargaining power with banks. Cash pooling also simplifies internal procedures through automation and standardization of cash flows. It provides a clear, consolidated view of cash flow, facilitating forecasting and quick decision-making. Centralization improves cash security and the ability to deal with unforeseen events. It also allows for better use of cash surpluses through more profitable investments. Much more than a technical tool, cash pooling is a real lever for financial management and resilience for companies.
ABOUT THE AUTHORS
Brice Euvé is a Consulting Partner at Emerson Audit & Conseil. With over 25 years of experience in auditing and consulting, and a degree in accounting, he supports the transformation of finance departments, particularly treasury departments, in their projects to develop TMS and improve the efficiency of treasury processes and treasury management.
Cécile Dobras is an Associate Director. She has over 10 years of experience in corporate finance, particularly in issues related to market risk management, cash management, and financing. Her role is to strengthen the firm's relationship with finance departments in the Auvergne-Rhône-Alpes region.
ABOUT EMERSON AUDIT & CONSULTING
With a team of 210 people, Emerson Audit & Consulting supports finance departments in the following areas:
- Their operational needs:team reinforcement across all business lines: Accounting, Consolidation, Management Control, Internal Control and Audit, Treasury
- Their transformation/digitalization projects: organization, optimization, and implementation of tools, management of CSR/CSRD projects.
Cash pooling is now a key tool in helping companies better withstand economic uncertainty and rising interest rates. It allows a group's cash flow to be centralized in order to use surpluses more efficiently and reduce recourse to debt. There are two models:
- Physical cash pooling, with actual money transfers,
- Notional cash pooling, based on virtual balancing of balances.
Well-regulated, this system secures internal cash flows and limits tax risks. It reduces financing costs by pooling the needs of subsidiaries and improving bargaining power with banks. Cash pooling also simplifies internal procedures through automation and standardization of cash flows. It provides a clear, consolidated view of cash flow, facilitating forecasting and quick decision-making. Centralization improves cash security and the ability to deal with unforeseen events. It also allows for better use of cash surpluses through more profitable investments. Much more than a technical tool, cash pooling is a real lever for financial management and resilience for companies.
ABOUT THE AUTHORS
Brice Euvé is a Consulting Partner at Emerson Audit & Conseil. With over 25 years of experience in auditing and consulting, and a degree in accounting, he supports the transformation of finance departments, particularly treasury departments, in their projects to develop TMS and improve the efficiency of treasury processes and treasury management.
Cécile Dobras is an Associate Director. She has over 10 years of experience in corporate finance, particularly in issues related to market risk management, cash management, and financing. Her role is to strengthen the firm's relationship with finance departments in the Auvergne-Rhône-Alpes region.
ABOUT EMERSON AUDIT & CONSULTING
With a team of 210 people, Emerson Audit & Consulting supports finance departments in the following areas:
- Their operational needs:team reinforcement across all business lines: Accounting, Consolidation, Management Control, Internal Control and Audit, Treasury
- Their transformation/digitalization projects: organization, optimization, and implementation of tools, management of CSR/CSRD projects.
Cash pooling is now a key tool in helping companies better withstand economic uncertainty and rising interest rates. It allows a group's cash flow to be centralized in order to use surpluses more efficiently and reduce recourse to debt. There are two models:
- Physical cash pooling, with actual money transfers,
- Notional cash pooling, based on virtual balancing of balances.
Well-regulated, this system secures internal cash flows and limits tax risks. It reduces financing costs by pooling the needs of subsidiaries and improving bargaining power with banks. Cash pooling also simplifies internal procedures through automation and standardization of cash flows. It provides a clear, consolidated view of cash flow, facilitating forecasting and quick decision-making. Centralization improves cash security and the ability to deal with unforeseen events. It also allows for better use of cash surpluses through more profitable investments. Much more than a technical tool, cash pooling is a real lever for financial management and resilience for companies.
ABOUT THE AUTHORS
Brice Euvé is a Consulting Partner at Emerson Audit & Conseil. With over 25 years of experience in auditing and consulting, and a degree in accounting, he supports the transformation of finance departments, particularly treasury departments, in their projects to develop TMS and improve the efficiency of treasury processes and treasury management.
Cécile Dobras is an Associate Director. She has over 10 years of experience in corporate finance, particularly in issues related to market risk management, cash management, and financing. Her role is to strengthen the firm's relationship with finance departments in the Auvergne-Rhône-Alpes region.
ABOUT EMERSON AUDIT & CONSULTING
With a team of 210 people, Emerson Audit & Consulting supports finance departments in the following areas:
- Their operational needs:team reinforcement across all business lines: Accounting, Consolidation, Management Control, Internal Control and Audit, Treasury
- Their transformation/digitalization projects: organization, optimization, and implementation of tools, management of CSR/CSRD projects.