{"id":999978862,"date":"2025-10-06T22:31:36","date_gmt":"2025-10-06T15:31:36","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999978862"},"modified":"2026-06-09T13:43:43","modified_gmt":"2026-06-09T06:43:43","slug":"what-is-money","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-money\/","title":{"rendered":"What is cash flow? The secret to effectively controlling and optimizing cash flow with financial automation solutions"},"content":{"rendered":"<p>Just like blood nourishes the body, cash flow nourishes the business. Without blood, the body collapses; without cash flow, the business loses its ability to survive even if the profit report is still positive. To help you grasp quickly, below is the core definition and 3 pillars of cash flow.<\/p>\n<p>Cash Flow is the movement in and out of cash and cash equivalents (such as treasury bills, short-term investments with original maturities of not more than 3 months) in a business.<\/p>\n<p>Cash flow plays three crucial roles in the survival of an organization:<\/p>\n<ul>\n<li>Ensure immediate payment ability (Solvency).<\/li>\n<li>Create a basis for business valuation and investment attraction.<\/li>\n<li>Provide resources for reinvestment and expansion.<\/li>\n<\/ul>\n<p>Read Bizzi&#039;s article below to learn more about its nature. <strong>What is cash flow?<\/strong>, while embracing traditional management methods and especially automation solutions to ensure financial health.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_la_gi_Phan_biet_va_Khai_niem_cot_loi\" >What is Cash Flow? Differences and Core Concepts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Phan_biet_Dong_tien_voi_Doanh_thu_va_Loi_nhuan\" >Distinguishing Cash Flow from Revenue and Profit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Cac_khai_niem_lien_quan_den_Dong_tien\" >Concepts related to Cash Flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Tam_quan_trong_doi_voi_doanh_nghiep_cua_Dong_tien_la_gi\" >What is the importance of Cash Flow to business?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Phan_loai_dong_tien_Cac_thanh_phan_tren_Bao_cao_Luu_chuyen_tien_te\" >Cash Flow Classification: Components of the Cash Flow Statement<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_tu_Hoat_dong_Kinh_doanh_Operating_Cash_Flow_%E2%80%93_OCF\" >Operating Cash Flow (OCF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_tu_Hoat_dong_Dau_tu_Investing_Cash_Flow_%E2%80%93_ICF\" >Investing Cash Flow (ICF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_tu_Hoat_dong_Tai_chinh_Financing_Cash_Flow_%E2%80%93_FCF\" >Cash Flow from Financing Activities (Financing Cash Flow \u2013 FCF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_thuan_Net_Cash_Flow\" >Net Cash Flow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_tu_do_Free_Cash_Flow_%E2%80%93_FCF\" >Free Cash Flow (FCF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_chiet_khau_Discounted_Cash_Flow_%E2%80%93_DCF\" >Discounted Cash Flow (DCF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Cac_ty_le_phan_tich_dong_tien_quan_trong_khac\" >Other important cash flow analysis ratios<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Phuong_phap_Quan_tri_Dong_tien_hieu_qua\" >Effective Cash Flow Management Methods<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Lap_ke_hoach_tai_chinh_va_Du_bao_Dong_tien\" >Financial Planning and Cash Flow Forecasting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Toi_uu_hoa_Dong_tien_vao_Quan_ly_Khoan_phai_thu_%E2%80%93_AR\" >Optimizing Cash Flow (Accounts Receivable Management \u2013 AR)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Toi_uu_hoa_Dong_tien_ra_Quan_ly_Khoan_phai_tra_%E2%80%93_AP\" >Optimizing Cash Flow Outflow (Accounts Payable Management \u2013 AP)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Quan_tri_Dong_tien_trong_Ky_nguyen_So\" >Cash Flow Management in the Digital Age<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Vai_tro_cua_Tu_dong_hoa_Tai_chinh_trong_Quan_ly_Dong_tien_va_giai_phap_tu_Bizzi\" >The Role of Financial Automation in Cash Flow Management and Solutions from Bizzi<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Tu_dong_hoa_Quan_ly_Khoan_phai_tra_AP_Automation\" >Accounts Payable Automation (AP Automation)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Tu_dong_hoa_Quan_ly_Khoan_phai_thu_AR_Automation\" >Accounts Receivable Management Automation (AR Automation)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Toi_uu_hoa_Kha_nang_Tiep_can_Von_Financing_Readiness\" >Optimizing Financing Readiness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Kiem_soat_Chi_tieu_va_Ngan_sach\" >Budgeting and Spending Control<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Tich_hop_lien_mach_voi_he_thong_ERP\" >Seamless integration with ERP systems<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Cau_hoi_Thuong_gap_ve_Dong_tien_la_gi\" >FAQ What is Cash Flow?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_am_co_nguy_hiem_khong\" >Is negative cash flow dangerous?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_khac_gi_voi_loi_nhuan\" >How is cash flow different from profit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Lam_the_nao_de_cai_thien_dong_tien_doanh_nghiep\" >How to improve business cash flow?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Dong_tien_co_anh_huong_den_dinh_gia_doanh_nghiep_khong\" >Does cash flow affect business valuation?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/bizzi.vn\/en\/what-is-money\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Dong_tien_la_gi_Phan_biet_va_Khai_niem_cot_loi\"><\/span><b>What is Cash Flow? Differences and Core Concepts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">What is cash flow? Cash flow is the movement of cash and cash equivalents into and out of a business over a period of time. It reflects the ability to generate cash and use cash for business, investment and financial activities. According to accounting standards, \u201ccash and cash equivalents\u201d are not only cash in hand, bank deposits but also include short-term investments with high liquidity, easily converted into cash and with low risk of value fluctuations (usually maturing within 3 months).<\/span><\/p>\n<p><b>Difference from profit:<\/b><span style=\"font-weight: 400;\"> Profit represents business performance on paper, while cash flow reflects the actual amount of money a business has and can use immediately.<\/span><\/p>\n<figure id=\"attachment_999979230\" aria-describedby=\"caption-attachment-999979230\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-999979230\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-2.jpg\" alt=\"what-is-currency\" width=\"1200\" height=\"800\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-2.jpg 1200w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-2-300x200.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-2-1024x683.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-2-768x512.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-2-18x12.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999979230\" class=\"wp-caption-text\">What is cash flow?<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Phan_biet_Dong_tien_voi_Doanh_thu_va_Loi_nhuan\"><\/span><b>Distinguishing Cash Flow from Revenue and Profit<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To make it easier to understand, the table below summarizes the differences between the concepts:<\/span><\/p>\n<table style=\"width: 100%;\" border=\"1\">\n<tbody>\n<tr>\n<td style=\"width: 13.6515%;\"><b>Criteria<\/b><\/td>\n<td style=\"width: 29.4118%;\"><b>Cash Flow<\/b><\/td>\n<td style=\"width: 30.2997%;\"><b>Revenue<\/b><\/td>\n<td style=\"width: 25.3052%;\"><b>Profit<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.6515%;\"><b>Nature<\/b><\/td>\n<td style=\"width: 29.4118%;\"><span style=\"font-weight: 400;\">Cash received or paid<\/span><\/td>\n<td style=\"width: 30.2997%;\"><span style=\"font-weight: 400;\">Recorded sales and service value<\/span><\/td>\n<td style=\"width: 25.3052%;\"><span style=\"font-weight: 400;\">The difference between revenue and expenses<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.6515%;\"><b>Time of recording<\/b><\/td>\n<td style=\"width: 29.4118%;\"><span style=\"font-weight: 400;\">When money actually comes in\/goes out<\/span><\/td>\n<td style=\"width: 30.2997%;\"><span style=\"font-weight: 400;\">When the transaction occurs (accrual accounting)<\/span><\/td>\n<td style=\"width: 25.3052%;\"><span style=\"font-weight: 400;\">After accounting for all costs and taxes<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.6515%;\"><b>Measurement<\/b><\/td>\n<td style=\"width: 29.4118%;\"><span style=\"font-weight: 400;\">Actual solvency and liquidity<\/span><\/td>\n<td style=\"width: 30.2997%;\"><span style=\"font-weight: 400;\">Business scale<\/span><\/td>\n<td style=\"width: 25.3052%;\"><span style=\"font-weight: 400;\">Business profitability<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.6515%;\"><b>For example<\/b><\/td>\n<td style=\"width: 29.4118%;\"><span style=\"font-weight: 400;\">Customers pay immediately or debt is not paid yet<\/span><\/td>\n<td style=\"width: 30.2997%;\"><span style=\"font-weight: 400;\">Issue sales invoice<\/span><\/td>\n<td style=\"width: 25.3052%;\"><span style=\"font-weight: 400;\">Revenue minus costs of raw materials, wages, etc.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Cac_khai_niem_lien_quan_den_Dong_tien\"><\/span><b>Concepts related to Cash Flow<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash Inflow:<\/b><span style=\"font-weight: 400;\"> Amounts received from sales, services, loans or investments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash Outflow:<\/b><span style=\"font-weight: 400;\"> Payments to suppliers, employee salaries, <a href=\"https:\/\/bizzi.vn\/chi-phi-van-hanh-operating-cost-la-gi-phan-loai-va-chien-luoc-toi-uu-hieu-qua\/\">operating costs<\/a>, tax\u2026<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Net Cash Flow:<\/b><span style=\"font-weight: 400;\"> The difference between cash inflow and outflow.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Positive cash flow:<\/b><span style=\"font-weight: 400;\"> Cash in is greater than cash out \u2192 increases liquidity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Negative cash flow:<\/b><span style=\"font-weight: 400;\"> Cash out is greater than cash in \u2192 need to control spending or raise more capital.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tam_quan_trong_doi_voi_doanh_nghiep_cua_Dong_tien_la_gi\"><\/span><b>What is the importance of Cash Flow to business?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cash flow is considered the &quot;blood vessel&quot; of a business, determining:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Short-term solvency: Ensuring salary payment, debt repayment, operating costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Financial risk management: Limit the risk of insolvency despite accounting profits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make strategic decisions: Identify opportunities for investment, business expansion, or financial restructuring.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Phan_loai_dong_tien_Cac_thanh_phan_tren_Bao_cao_Luu_chuyen_tien_te\"><\/span><b>Cash Flow Classification: Components of the Cash Flow Statement<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cash flow statement (<\/span><b>Cash Flow Statement<\/b><span style=\"font-weight: 400;\">) is an important tool to help businesses <\/span><b>track cash movements<\/b><span style=\"font-weight: 400;\"> and assess profitability, liquidity, and overall financial health. In Vietnam, this is a mandatory report that must comply with Vietnamese Accounting Standards (VAS) or international standards (IFRS) if applicable.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cash flow classification helps businesses and investors clearly see the nature of cash flow, where it comes from and where it is used, instead of just relying on profit figures. In other words, understanding cash flow classification is grasping the financial &quot;blood vessels&quot; of the business, helping to manage effectively and predict risks early.<\/span><\/p>\n<figure id=\"attachment_999978865\" aria-describedby=\"caption-attachment-999978865\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999978865\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-3.webp\" alt=\"What is money 3\" width=\"1200\" height=\"670\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-3.webp 1359w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-3-300x168.webp 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-3-1024x572.webp 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-3-768x429.webp 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-3-18x10.webp 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978865\" class=\"wp-caption-text\">Cash flow classification<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_tu_Hoat_dong_Kinh_doanh_Operating_Cash_Flow_%E2%80%93_OCF\"><\/span><b>Operating Cash Flow (OCF)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is the cash flow arising from <\/span><b>main business activities<\/b><span style=\"font-weight: 400;\"> of a business, including sales, provision of services, payment of operating expenses, taxes and payments related to regular business operations.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reflects the amount of cash generated from core business activities (sales, service provision).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An important measure of a company&#039;s ability to generate cash without relying on external funding.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Is the most important indicator to assess the ability to generate cash from core operations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Positive OCF cash flow \u2192 the business is generating cash from operating activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Negative OCF cash flow \u2192 can warn of business performance or problems <a href=\"https:\/\/bizzi.vn\/hieu-ve-quan-ly-dong-tien-doanh-nghiep\/\">business cash flow management<\/a>.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_tu_Hoat_dong_Dau_tu_Investing_Cash_Flow_%E2%80%93_ICF\"><\/span><b>Investing Cash Flow (ICF)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Cash flows arising from the purchase, sale, or investment in long-term assets such as buildings, machinery, real estate, or other long-term financial investments.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Usually cash outflows when buying assets and cash inflows when selling assets or recovering investments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps managers evaluate the level of investment and profitability of long-term investments.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_tu_Hoat_dong_Tai_chinh_Financing_Cash_Flow_%E2%80%93_FCF\"><\/span><b>Cash Flow from Financing Activities (Financing Cash Flow \u2013 FCF)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cash flow from <\/span><b>capital raising or repayment activities<\/b><span style=\"font-weight: 400;\">, including borrowing, issuing shares, paying dividends or repaying principal.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Record proceeds from borrowing, issuing shares and payments of dividends and debt repayments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Demonstrates the enterprise&#039;s strategy for raising and using capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Helps investors and CFOs track how the business <\/span><b>leveraging debt and equity<\/b><span style=\"font-weight: 400;\"> to develop or maintain operations.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_thuan_Net_Cash_Flow\"><\/span><b>Net Cash Flow<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Is the difference between total cash inflow and cash outflow during the period, c<span style=\"font-weight: 400;\">know the business is <\/span><b>increase or decrease the amount of cash<\/b><span style=\"font-weight: 400;\"> Actual during the period is the basis for making liquidity decisions and managing reserve funds.<\/span><\/p>\n<ul>\n<li><b>Recipe: <\/b><span style=\"font-weight: 400;\">Cash flow = OCF + ICF + FCF<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_tu_do_Free_Cash_Flow_%E2%80%93_FCF\"><\/span><b>Free Cash Flow (FCF)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Is the amount remaining after a business has spent on capital expenditures (CAPEX) from operating cash flow<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">FCF is an important indicator for business valuation and investment decisions.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Positive free cash flow \u2192 the company has the ability to pay debt, pay dividends and reinvest.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Negative free cash flow \u2192 the business may need to raise additional capital or cut spending.<\/span><\/li>\n<\/ul>\n<p><b>Meaning:\u00a0<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For CFO: Assess the ability to finance new operations without additional debt.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For investors: A key indicator in business valuation, reflecting actual cash generation power.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_chiet_khau_Discounted_Cash_Flow_%E2%80%93_DCF\"><\/span><b>Discounted Cash Flow (DCF)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Discounted Cash Flow (DCF) is a valuation analysis method based on converting expected future Cash Flows to Net Present Value (NPV), using a Discount Rate (usually Weighted Average Cost of Capital \u2013 WACC).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cac_ty_le_phan_tich_dong_tien_quan_trong_khac\"><\/span>Other important cash flow analysis ratios<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Operating Cash Flow\/Current Debt Ratio<\/strong> (Current Liability Coverage Ratio): Measures the ability of a business to pay short-term debts with cash flow generated from core business activities, demonstrating financial autonomy.<\/li>\n<li><strong>Debt coverage ratio<\/strong> (Debt Service Coverage Ratio \u2013 DSCR): An extremely important indicator in capital financing decisions, indicating whether operating cash flow is sufficient to cover debt obligations (principal and interest).<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Phuong_phap_Quan_tri_Dong_tien_hieu_qua\"><\/span><b>Effective Cash Flow Management Methods<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Not only is it important to understand the nature of cash flow, but effective cash flow management is also extremely important. This is not just about &quot;earning more than spending&quot;, but also about balancing the pace of revenue and spending, optimizing receivables and payables to maintain a positive, stable and sustainable cash flow.<\/span><\/p>\n<p><b><i>So what is the solution to cash flow management?<\/i><\/b><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lap_ke_hoach_tai_chinh_va_Du_bao_Dong_tien\"><\/span><b>Financial Planning and Cash Flow Forecasting<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/bizzi.vn\/lap-du-toan-tai-chinh-doanh-nghiep-kim-chi-nam-cho-hoach-dinh-va-kiem-soat\/\">Financial planning<\/a> is the first step in cash flow management, helping businesses <\/span><b>Estimate cash needs and anticipate future fluctuations<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Main steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash Inflow Forecast:<\/b><span style=\"font-weight: 400;\"> Estimate cash flow from sales, debt collection, financing sources.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cash Outflow Forecast:<\/b><span style=\"font-weight: 400;\"> Including operating costs, salaries, debt payments, investments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculate Net Cash Flow:<\/b><span style=\"font-weight: 400;\"> Compare cash inflows and outflows to determine surpluses or shortages.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Take action:<\/b><span style=\"font-weight: 400;\"> If a shortfall is forecast, it is necessary to prepare short-term loans, adjust costs or promote debt collection.<\/span><\/li>\n<\/ul>\n<p>Cash flow planning and forecasting helps businesses be proactive in all situations, avoid the risk of sudden cash shortages and optimize capital efficiency.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Toi_uu_hoa_Dong_tien_vao_Quan_ly_Khoan_phai_thu_%E2%80%93_AR\"><\/span><b>Optimizing Cash Flow (Accounts Receivable Management \u2013 AR)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">AR management helps businesses <\/span>speed up debt collection, improve available cash flow and reduce credit risk from customers<span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Optimization strategies:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payment policy &amp; incentives:<\/b><span style=\"font-weight: 400;\"> Encourage customers to pay early with discounts; establish clear payment terms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tracking &amp; debt reminders:<\/b><span style=\"font-weight: 400;\"> Use automatic system to remind customers, reduce bad debt risk.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>DSO (Days Sales Outstanding) Index:<\/b><span style=\"font-weight: 400;\"> Reflects the average time (number of days) it takes for a business to collect money after generating revenue.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Low DSO:<\/b><span style=\"font-weight: 400;\"> Fast debt collection, stable cash flow.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>High DSO:<\/b><span style=\"font-weight: 400;\"> Risk of capital stagnation and liquidity shortage.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Optimize cash flow to help <\/span><b>Reduce capital costs, improve operating efficiency and improve overall financial performance<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Toi_uu_hoa_Dong_tien_ra_Quan_ly_Khoan_phai_tra_%E2%80%93_AP\"><\/span><b>Optimizing Cash Flow Outflow (Accounts Payable Management \u2013 AP)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>AP management helps businesses maximize payment terms, control costs and maintain good relationships with suppliers.<\/p>\n<p><span style=\"font-weight: 400;\">Strategies:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Take advantage of payment terms:<\/b><span style=\"font-weight: 400;\"> Use the full credit period that the supplier allows, both to maintain reputation and to maintain cash for other activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Negotiation with suppliers:<\/b><span style=\"font-weight: 400;\"> Negotiate longer terms or discounts for early payment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost Control:<\/b><span style=\"font-weight: 400;\"> Limit overspending, review unnecessary expenses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Effective cash flow management helps businesses <\/span><b>preserve capital, balance liquidity and improve profits<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<figure id=\"attachment_999978866\" aria-describedby=\"caption-attachment-999978866\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999978866 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-5.webp\" alt=\"what-is-currency \" width=\"1000\" height=\"686\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-5.webp 1000w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-5-300x206.webp 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-5-768x527.webp 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/dong-tien-la-gi-5-18x12.webp 18w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-999978866\" class=\"wp-caption-text\">Optimize cash flow<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Quan_tri_Dong_tien_trong_Ky_nguyen_So\"><\/span>Cash Flow Management in the Digital Age<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a rapidly changing market, manual Excel management methods can no longer meet the demands of speed and accuracy. Errors in data entry or delays in reconciliation of accounts receivable can lead to poor financial decisions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Vai_tro_cua_Tu_dong_hoa_Tai_chinh_trong_Quan_ly_Dong_tien_va_giai_phap_tu_Bizzi\"><\/span><b>The Role of Financial Automation in Cash Flow Management and Solutions from <\/b><b>Bizzi<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cash flow management is not just about planning or forecasting, it also requires <\/span><b>use technology to automate financial processes<\/b><span style=\"font-weight: 400;\">, helping to reduce errors, speed up cash collection and disbursements, and improve capital efficiency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With Bizzi.vn, financial automation is not only about saving time, but also a strategic tool to help businesses manage cash flow effectively, reduce risks and create a solid foundation for long-term growth. Bizzi is currently the leading financial automation solution in Vietnam, trusted and chosen by many large enterprises, typically:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>N KID<\/b><span style=\"font-weight: 400;\"> \u2013 children&#039;s entertainment and retail center system.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GS25<\/b><span style=\"font-weight: 400;\"> \u2013 Korean convenience store chain.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Guardian<\/b><span style=\"font-weight: 400;\"> \u2013 famous pharmaceutical and cosmetic retail brand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>TIKI<\/b><span style=\"font-weight: 400;\"> \u2013 top e-commerce platform in Vietnam.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">\u2026.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The trust from major brands shows that Bizzi not only solves cash flow problems effectively but also meets strict requirements on scale, accuracy and system integration capabilities.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Tu_dong_hoa_Quan_ly_Khoan_phai_tra_AP_Automation\"><\/span><b>Accounts Payable Automation (AP Automation)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bizzi.vn applies AI and RPA to process input invoices quickly, eliminating manual errors. This solution allows businesses to strictly control cash flow through:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated invoice processing using AI\/RPA:<\/b><span style=\"font-weight: 400;\"> Bizzi.vn applies artificial intelligence (AI) and robotic process automation (RPA) to automatically collect, check and classify input invoices. This helps to minimize manual errors and save processing time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automatic 3-way matching to prevent fraud:<\/b><span style=\"font-weight: 400;\"> The system automatically compares invoices with purchase orders and delivery notes, helping to detect discrepancies and prevent incorrect payments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maximize the utilization of payment term:<\/b><span style=\"font-weight: 400;\"> AP automation helps businesses control costs, take advantage of payment terms and maintain good relationships with suppliers, thereby optimizing cash flow.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999978614\" aria-describedby=\"caption-attachment-999978614\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978614\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/phan-mem-ke-toan-sap-6.png\" alt=\"what-is-currency\" width=\"1200\" height=\"779\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/phan-mem-ke-toan-sap-6.png 2048w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/phan-mem-ke-toan-sap-6-300x195.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/phan-mem-ke-toan-sap-6-1024x665.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/phan-mem-ke-toan-sap-6-768x499.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/phan-mem-ke-toan-sap-6-1536x998.png 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/09\/phan-mem-ke-toan-sap-6-18x12.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978614\" class=\"wp-caption-text\">Invoice processing through Bizzi&#039;s solution is automated 100%<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Tu_dong_hoa_Quan_ly_Khoan_phai_thu_AR_Automation\"><\/span><b>Accounts Receivable Management Automation (AR Automation)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A common problem in cash flow management is slow debt collection, causing capital to stagnate. Bizzi.vn provides an automatic debt reminder system via email\/SMS, and also provides a real-time Aging Report tool.<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automatic debt reminder:<\/b><span style=\"font-weight: 400;\"> Bizzi.vn provides automatic debt reminder solutions via multiple channels such as email and SMS, helping to reduce debt collection time and improve cash flow.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tracking the debt aging index (Aging Report):<\/b><span style=\"font-weight: 400;\"> The system automatically updates and classifies debts by age, helping CFOs easily track and manage debts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improve cash flow:<\/b><span style=\"font-weight: 400;\"> AR automation helps businesses speed up debt collection, reduce credit risk, and improve solvency.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Toi_uu_hoa_Kha_nang_Tiep_can_Von_Financing_Readiness\"><\/span>Optimizing Financing Readiness<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A little-known but extremely important advantage of Bizzi is the ability to standardize financial data. When all invoices and debts are digitized and transparently authenticated on the system, businesses own a &quot;clean&quot; and reliable credit profile. This is an important database that helps financial institutions quickly assess, thereby making it easier for businesses to access working capital or supply chain financing to handle short-term cash flow deficits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Kiem_soat_Chi_tieu_va_Ngan_sach\"><\/span><b>Budgeting and Spending Control<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">With Bizzi Expense, businesses can monitor spending in real time and set up automated approval processes for each expense. This keeps budget overruns and unplanned spending under control, helping to maintain a healthy cash flow.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Real-time spending monitoring:<\/b><span style=\"font-weight: 400;\"> Bizzi.vn provides real-time expense tracking tools, helping businesses control budgets and prevent overspending.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated approval process:<\/b><span style=\"font-weight: 400;\"> The system automates the spending approval process, ensuring compliance with financial policies and improving administrative efficiency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost optimization:<\/b><span style=\"font-weight: 400;\"> Controlling spending and budgeting helps businesses optimize costs, increase profits and improve cash flow.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Tich_hop_lien_mach_voi_he_thong_ERP\"><\/span><b>Seamless integration with ERP systems<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bizzi.vn&#039;s outstanding strength is its ability to <\/span><a href=\"https:\/\/bizzi.vn\/tich-hop-erp\/\"><span style=\"font-weight: 400;\">Integrates with leading ERP systems<\/span><\/a><span style=\"font-weight: 400;\"> such as SAP, Oracle, Microsoft Dynamics. All debt, expense and invoice data is synchronized, creating a unified financial ecosystem, helping CFOs and administrators make decisions based on accurate, real-time data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Bizzi.vn, financial automation is not only a time saver, but also a strategic tool to help businesses manage cash flow effectively, reduce risks and create a solid foundation for long-term growth.<\/span><\/p>\n<figure id=\"attachment_999978636\" aria-describedby=\"caption-attachment-999978636\" style=\"width: 1920px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978636 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/tich-hop-erp.jpg\" alt=\"what-is-currency\" width=\"1920\" height=\"1080\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/tich-hop-erp.jpg 1920w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/tich-hop-erp-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/tich-hop-erp-1024x576.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/tich-hop-erp-768x432.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/tich-hop-erp-1536x864.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/tich-hop-erp-18x10.jpg 18w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/><figcaption id=\"caption-attachment-999978636\" class=\"wp-caption-text\">Seamless integration with ERP systems<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Cau_hoi_Thuong_gap_ve_Dong_tien_la_gi\"><\/span><b>FAQ What is Cash Flow?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below are answers to some questions related to what is cash flow, comparison and how to optimize cash flow in a business.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_am_co_nguy_hiem_khong\"><\/span><b>Is negative cash flow dangerous?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Negative cash flow is not always a bad thing. For example, when a company invests heavily in expansion, marketing, or M&amp;A, the cash flow may be negative in the short term but bring long-term benefits. However, if the negative cash flow comes from core business activities (no revenue from sales), it is a sign of high liquidity risk.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_khac_gi_voi_loi_nhuan\"><\/span><b>How is cash flow different from profit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit is an \u201caccounting figure\u201d that reflects the results of business operations (which may include uncollected revenue or unpaid expenses).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cash flow reflects the actual money going in and out of the business.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A business can have positive profits but negative cash flow (due to outstanding debt, large inventories), or vice versa.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lam_the_nao_de_cai_thien_dong_tien_doanh_nghiep\"><\/span><b>How to improve business cash flow?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Efficient AR\/AP management, cost optimization and financial automation applications.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manage <\/span><b>AR (accounts receivable):<\/b><span style=\"font-weight: 400;\"> Shorten collection time, improve DSO.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Manage <\/span><b>AP (accounts payable):<\/b><span style=\"font-weight: 400;\"> Make the most of your payment terms without compromising your reputation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inventory control, optimizing working capital turnover.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Application <\/span><b>financial automation<\/b><span style=\"font-weight: 400;\"> (like Bizzi.vn) to reduce errors, speed up invoice processing and cash flow.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_co_anh_huong_den_dinh_gia_doanh_nghiep_khong\"><\/span><b>Does cash flow affect business valuation?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. Most current valuation methods (e.g. <\/span><b>DCF \u2013 Discounted Cash Flow<\/b><span style=\"font-weight: 400;\">) based on the ability to generate future cash flows. Investors and CFOs are often interested in <\/span><b>Free Cash Flow (FCF)<\/b><span style=\"font-weight: 400;\">, because this is the real capital available to pay dividends, reinvest or repay debt.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With Bizzi.vn, financial automation is not only a time-saver, but also a strategic tool to help businesses control costs, debts and manage cash flow effectively in real time. Don&#039;t let liquidity risk hinder your business. Sign up for a consultation and try Bizzi&#039;s solution today: <a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\">https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Just as blood nourishes the body, cash flow nourishes a business. Without blood, the body collapses; without cash flow, the business loses its ability to\u2026<\/p>","protected":false},"author":56,"featured_media":999978864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[76,372],"tags":[],"class_list":["post-999978862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-goc-nhin-cfo","category-thanh-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999978862"}],"version-history":[{"count":6,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978862\/revisions"}],"predecessor-version":[{"id":999979232,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978862\/revisions\/999979232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999978864"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999978862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999978862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999978862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}