Cash-pooling in Russian holding companies: implementation needs and effectiveness assessment
This article presents an analysis of a new instrument for managing cash in holdings, corporations and companies with a branched territorial structure. The subject of the study is cash-pooling, as a system for managing cash flows of large companies and corporations, introduced to improve the financial condition. This type of tool is not only little developed in Russia, but also poorly understood. The choice of the scheme of cash-pooling and its implementation is the decision of the top management of large companies and corporations. However, the evaluation of the effectiveness of the implementation of a scheme at a subsidiary, representative office or branch is extremely laborious and little studied. The article analyzes theoretical bases, Russian and foreign practice, general trends in the industry. A method for assessing the effectiveness of the introduction and operation of cash pool schemes in subsidiaries, branches and representative offices is presented. In the course of work on this article, the foreign practice of implementing this tool, the results of work in various schemes and methods was studied. Practice of foreign companies was largely copied by Russian holdings and hastily presented. Later the company changed certain moments and mechanisms of the work process, which provided companies with effective management of cash balances on their accounts. In the article the author draws conclusions on the most effective use of cash-pooling schemes at the enterprise, taking into account the regional and industry specifics of companies, articulates the advantages and disadvantages of implementing cash-pooling schemes, and also points to the problems that Russian subsidiaries of one Head Organization, and represents the ways of solving these problems. In addition, the author points out legislative limitations that have not yet been resolved in the Russian Federation for the full operation of the cash-pooling system and cash management. The author provides an individual point of view on ways to improve the efficiency of the cash-pooling system at enterprises, presents the algorithm for making decisions and key indicators, indicates tools and ways to improve the efficiency of cache pooling schemes for both subsidiaries and the Head Organization.