Search
 

Gold AHA Winner in Cash Management

The ZBA Way to Concentrate Cash: Microsoft

By Staff Writer | Updated on November 01, 2011
George Zinn, treasurer and corporate VP, and Anita Prasad, general manager, U.S. treasury capital management

Microsoft has 350 legal entities operating in 118 countries (and using 1,000 accounts at 100 different banks), so concentrating excess cash efficiently and funding those operations just in time is a formidable challenge that the $70 billion company addressed with eye-catching success.

Long a leader in the use of automation, Microsoft treasury was still using a time-consuming manual process to fund and collect from 175 actively funded subsidiaries in 2010. Funding usually meant wiring funds to the subsidiaries twice a month and wiring back excess balances when local regulations permitted. Treasury knew that daily sweeps to zero balance accounts (ZBAs) was ideal, but doing it manually took time, and the time zone differences made same-day sweeps impossible for Europe and Asia. The key to better control and liquidity management would be a global ZBA structure with same-day automated sweeps and just-in-time funding.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.