Tag Archive for 'Cash Pooling'

Apple’s Cash Pooling

Cash Pooling, Apple Tax, Apple Tax PlanningAs you know, I am a huge fan(atic) of Apple‘s products – haven been for more than 20 years. Of course with great products and market-leading valuations means Apple gets a lot of news coverage. This week it’s about it’s overseas tax planning strategies and cash pooling.

Even though they are legitimate and legal, the popular press is all over it because of their recent declaration of a share buy back and establishing a dividend payment to shareholders.

Even though it makes for great headlines and sells newspapers and now online advertising, the reality is that these strategies are impossible if you can’t do what financial managers call Cash Pooling.

It’s quite sophisticated and all multi-billion corporations do it. Simply put, it’s knowing where your cash is so you can place and use it in the most effective place which usually involves tax considerations. As a business owner, it’s just another reminder that the practices of the “big boys” still applies to small business – especially those in high growth mode. Knowing where you cash is and having it where and when you need it can be the difference between growth and believe it or not – going bust.

Many high growth businesses (even profitable) ones run out of cash due to irregular cash flows and their timing. If you’re struggling with Excel spreadsheets to figure out where your cash is, you might want to consider an online cash management solution that goes well beyond your accounting and bookkeeping tasks.

Disclaimer: I am currently LONG on APPLE stock. I figure with $100 Billion in cash reserves, they have more than enough cash to deal with any competitors and technological challenges that will come up.