{"id":999978936,"date":"2025-10-07T23:08:26","date_gmt":"2025-10-07T16:08:26","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999978936"},"modified":"2026-06-09T13:43:44","modified_gmt":"2026-06-09T06:43:44","slug":"what-is-cash-flow-planning","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/","title":{"rendered":"What is Cash Flow Planning? Role, Process and Optimal Strategy for Business"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Even if a business is profitable, not proactively planning cash flow can still lead to a liquidity crisis, causing the business to struggle or fail. Cash flow planning helps businesses ensure continued solvency, supports strategic financial decision-making from early detection of potential problems, optimizes resource management and ensures stability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let&#039;s learn more about this content with Bizzi in the article below.<\/span><\/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-cash-flow-planning\/#Ban_chat_cua_Dong_tien_La_Gi_Lap_ke_hoach_Dong_tien\" >What is the Nature of Cash Flow &amp; Cash Flow Planning<\/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-cash-flow-planning\/#Dinh_nghia_Dong_tien_Cash_Flow_va_Ke_hoach_Dong_tien_Cash_Flow_Forecast\" >Definition of Cash Flow and Cash Flow Forecast<\/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-cash-flow-planning\/#Phan_biet_lap_ke_hoach_dong_tien_va_lap_ngan_sach\" >Distinguish between cash flow planning and budgeting<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Vai_tro_chien_luoc_cua_viec_lap_ke_hoach_dong_tien_trong_doanh_nghiep\" >The strategic role of cash flow planning in business<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Chia_khoa_duy_tri_Thanh_khoan_va_Han_che_rui_ro\" >The Key to Maintaining Liquidity and Limiting Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Ho_tro_ra_quyet_dinh_kinh_doanh_va_dau_tu\" >Support business and investment decisions<\/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-cash-flow-planning\/#Dong_tien_tu_do_Free_Cash_Flow_%E2%80%93_FCF_va_y_nghia_trong_danh_gia_suc_khoe_tai_chinh\" >Free Cash Flow (FCF) and its significance in assessing financial health<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Quy_trinh_Lap_ke_hoach_Dong_tien_chi_tiet\" >Detailed Cash Flow Planning Process<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Buoc_1_Du_bao_Dong_tien_vao_Cash_Inflow\" >Step 1: Cash Inflow Forecast<\/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-cash-flow-planning\/#Buoc_2_Du_bao_Dong_tien_ra_Cash_Outflow\" >Step 2: Cash Outflow Forecast<\/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-cash-flow-planning\/#Buoc_3_Xac_dinh_Dong_tien_thuan_Net_Cash_Flow\" >Step 3: Determine Net Cash Flow<\/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-cash-flow-planning\/#Buoc_4_Xac_dinh_So_tien_ton_cuoi_ky_Ending_Cash_Balance\" >Step 4: Determine the Ending Cash Balance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Buoc_5_Xu_ly_kich_ban_ThuaThieu_tien_mat\" >Step 5: Handling Cash Surplus\/Short Scenario<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Cac_chi_so_KPI_va_thach_thuc_trong_viec_lap_ke_hoach_dong_tien\" >Key Performance Indicators (KPIs) and Challenges in Cash Flow Planning<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Cac_chi_so_KPI_dong_tien_quan_trong_can_theo_doi\" >Key Cash Flow KPIs to Track<\/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-cash-flow-planning\/#Thach_thuc_pho_bien_va_sai_lam_can_tranh\" >Common Challenges and Mistakes to Avoid<\/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-cash-flow-planning\/#Quan_ly_tai_chinh_thong_minh_voi_Bizzi_Chia_khoa_de_toi_uu_dong_tien_va_lap_ke_hoach_dong_tien\" >Smart financial management with Bizzi: The key to optimizing cash flow and cash flow planning<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Lap_ke_hoach_dong_tien_theo_Kich_ban_Scenario_Planning\" >Scenario Planning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Cach_Bizzivn_giup_doanh_nghiep_kiem_soat_va_toi_uu_dong_tien\" >How Bizzi.vn helps businesses control and optimize cash flow<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/what-is-cash-flow-planning\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Ban_chat_cua_Dong_tien_La_Gi_Lap_ke_hoach_Dong_tien\"><\/span><b>What is the Nature of Cash Flow &amp; Cash Flow Planning<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below is a deeper analysis of the nature of Cash Flow, providing complete information to help managers have a multi-dimensional view in planning cash flow most effectively.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dinh_nghia_Dong_tien_Cash_Flow_va_Ke_hoach_Dong_tien_Cash_Flow_Forecast\"><\/span><b>Definition of Cash Flow and Cash Flow Forecast<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/bizzi.vn\/dong-tien-la-gi-bi-quyet-kiem-soat-va-toi-uu-dong-tien-hieu-qua-voi-giai-phap-tu-dong-hoa-tai-chinh\/\">Cash flow<\/a> (<strong>Cash Flow<\/strong>) is the flow of cash in and out of a business over a certain period of time, reflecting the ability to generate money, spend and maintain operations.<\/span><span style=\"font-weight: 400;\"> Cash Flow Plan\u00a0<strong>(Cash Flow Forecast)<\/strong> is a cash flow forecasting and management tool that helps businesses control, coordinate and optimize cash resources to ensure payment ability and business operations.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Phan_biet_lap_ke_hoach_dong_tien_va_lap_ngan_sach\"><\/span><b>Distinguish between cash flow planning and budgeting<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The main difference between budgeting and cash flow planning is shown as follows:<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 13.5371%;\"><b>Content<\/b><\/td>\n<td style=\"width: 44.9782%;\"><b>Budgeting<\/b><\/td>\n<td style=\"width: 40.2838%;\"><b>Cash Flow Planning<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.5371%;\"><span style=\"font-weight: 400;\">Target<\/span><\/td>\n<td style=\"width: 44.9782%;\"><span style=\"font-weight: 400;\"> Develop strategic, long-term financial plans to achieve overall business goals.\u00a0<\/span><\/td>\n<td style=\"width: 40.2838%;\"><span style=\"font-weight: 400;\">Ensuring liquidity means having enough cash at any given time to meet financial obligations, such as salaries, suppliers.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.5371%;\"><span style=\"font-weight: 400;\">Time<\/span><\/td>\n<td style=\"width: 44.9782%;\"><span style=\"font-weight: 400;\">Long term, usually 12 months or more.<\/span><\/td>\n<td style=\"width: 40.2838%;\"><span style=\"font-weight: 400;\"> Short term, usually weeks or months.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.5371%;\"><span style=\"font-weight: 400;\">Scope<\/span><\/td>\n<td style=\"width: 44.9782%;\"><span style=\"font-weight: 400;\">Forecast total revenue and total expenses, determining how much the business will spend and how much it will earn to achieve its goals.<\/span><\/td>\n<td style=\"width: 40.2838%;\"><span style=\"font-weight: 400;\">Track real-time cash flow \u2013 when cash actually comes in and out of your business.\u00a0<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.5371%;\"><span style=\"font-weight: 400;\">Nature<\/span><\/td>\n<td style=\"width: 44.9782%;\"><span style=\"font-weight: 400;\">Like a blueprint, it shows the long-term financial expectations of the business.\u00a0<\/span><\/td>\n<td style=\"width: 40.2838%;\"><span style=\"font-weight: 400;\">Very practical and flexible, focusing on cash management at a specific point in time, knowing when to reinvest or when to raise capital.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em><span style=\"font-weight: 400;\">&gt;&gt; See more podcasts: <\/span><a href=\"https:\/\/www.youtube.com\/watch?v=hWyi7ODy8Ko\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Budgeting and cash flow planning for SME businesses 2025, Ms. Le Na \u2013 The CashFlow<\/span><\/a><\/em><\/p>\n<figure id=\"attachment_999978937\" aria-describedby=\"caption-attachment-999978937\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999978937 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-2.jpg\" alt=\"what is cash flow planning\" width=\"1200\" height=\"878\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-2.jpg 1200w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-2-300x220.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-2-1024x749.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-2-768x562.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-2-16x12.jpg 16w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978937\" class=\"wp-caption-text\">Cash flow planning ensures liquidity, meaning having enough cash at any given point in time to meet financial obligations, such as salaries and suppliers.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Vai_tro_chien_luoc_cua_viec_lap_ke_hoach_dong_tien_trong_doanh_nghiep\"><\/span><b>The strategic role of cash flow planning in business<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cash flow planning plays an important strategic role in financial control, forecasting and business decision making, risk mitigation, and enhancing the ability to raise capital. It ensures that the business can maintain operations and develop sustainably, even when profits are not high. It helps the business \u201cnot die from running out of money\u201d by continuously monitoring and adjusting cash inflows and outflows.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chia_khoa_duy_tri_Thanh_khoan_va_Han_che_rui_ro\"><\/span><b>The Key to Maintaining Liquidity and Limiting Risk<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cash Flow Planning helps forecast income and expenses before they occur, so businesses can allocate cash appropriately, avoid liquidity shortages and minimize the risk of default or operational disruption.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Verb context: forecast, control, prevent, protect.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, when forecasting cash flow for the next three months, businesses can postpone or restructure large expenses if they detect a risk of shortage, instead of passively seeking emergency funding.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Ho_tro_ra_quyet_dinh_kinh_doanh_va_dau_tu\"><\/span><b>Support business and investment decisions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A detailed cash flow plan allows a business to assess its financial capacity before deciding to expand or invest. This allows decisions to be proactive, based on real data, reducing risk and optimizing profits.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Verb context: coordinate, optimize, decide, take advantage of opportunities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, when forecasting cash flows for new projects, businesses can determine when additional capital can be invested, or choose the optimal timing of borrowing\/investing so as not to affect current operations.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Dong_tien_tu_do_Free_Cash_Flow_%E2%80%93_FCF_va_y_nghia_trong_danh_gia_suc_khoe_tai_chinh\"><\/span><b>Free Cash Flow (FCF) and its significance in assessing financial health<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Free cash flow (FCF) is the portion of cash flow available after operating expenses and investments in fixed assets. This is an important indicator to measure the ability to create real value, assess financial health and sustainable profitability.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Verb context: calculate, evaluate, compare, optimize.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In-depth meaning: Stable positive FCF shows that the business has the ability to repay debt, pay dividends and reinvest without relying on debt, which is a high credit index for investors and banks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For example, a business with positive and steadily growing FCF can expand, acquire new assets, or invest in R&amp;D without affecting liquidity.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999978939\" aria-describedby=\"caption-attachment-999978939\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999978939\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-3.webp\" alt=\"what is cash flow planning\" width=\"1200\" height=\"611\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-3.webp 1455w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-3-300x153.webp 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-3-1024x522.webp 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-3-768x391.webp 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-3-18x9.webp 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978939\" class=\"wp-caption-text\">Free cash flow (FCF) is an important indicator to measure the ability to create real value, assess financial health and sustainable profitability.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Quy_trinh_Lap_ke_hoach_Dong_tien_chi_tiet\"><\/span><b>Detailed Cash Flow Planning Process<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below is <\/span><b>5-step detailed Cash Flow Planning process<\/b><span style=\"font-weight: 400;\"> Action-oriented and easy to apply in business:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_1_Du_bao_Dong_tien_vao_Cash_Inflow\"><\/span><b>Step 1: Cash Inflow Forecast<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cash inflow is <\/span><b>the amount of money the business expects to receive<\/b><span style=\"font-weight: 400;\"> during the period. Need to be classified into 3 activities:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business activities:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Sales revenue, service provision.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/bizzi.vn\/thu-hoi-cong-no-la-gi-quy-trinh-thu-hoi-cong-no-hieu-qua-cho-doanh-nghiep\/\">Debt collection<\/a> from customers.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investment activities:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Capital recovery from sale of fixed assets, financial investments.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial activities:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Bank loans, bond issuance, capital contributions from shareholders.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_2_Du_bao_Dong_tien_ra_Cash_Outflow\"><\/span><b>Step 2: Cash Outflow Forecast<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cash outflow is <\/span><b>expected spending amount<\/b><span style=\"font-weight: 400;\">. Also classified into 3 activities:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business activities:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Cost of raw materials, employee salaries, operating costs.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investment activities:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Purchase of fixed assets, financial investment.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial activities:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Loan repayment, interest and dividend payments.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_3_Xac_dinh_Dong_tien_thuan_Net_Cash_Flow\"><\/span><b>Step 3: Determine Net Cash Flow<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Formula: Net cash flow = Cash inflow \u2013 Cash outflow<\/span><\/li>\n<li>Meaning:\n<ul>\n<li>Positive net cash flow: The business has a cash surplus, good ability to reinvest or repay debt.<\/li>\n<li>Negative cash flow: Potential risk of liquidity shortage, need to find additional cash source promptly.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_4_Xac_dinh_So_tien_ton_cuoi_ky_Ending_Cash_Balance\"><\/span><b>Step 4: Determine the Ending Cash Balance<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Ending balance = Beginning balance + Net cash flow<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Provides an overview of available cash after each period.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Helps businesses monitor liquidity continuously.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Buoc_5_Xu_ly_kich_ban_ThuaThieu_tien_mat\"><\/span><b>Step 5: Handling Cash Surplus\/Short Scenario<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>When short of cash:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Adjust spending<\/b><span style=\"font-weight: 400;\">: postpone non-urgent expenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Increase revenue<\/b><span style=\"font-weight: 400;\">: promote debt collection, accelerate revenue.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Capital mobilization<\/b><span style=\"font-weight: 400;\">: bank loans, bond issuance or additional capital raising.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>When there is excess cash:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Reinvestment<\/b><span style=\"font-weight: 400;\">: expand production, purchase fixed assets, R&amp;D.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Financial investment<\/b><span style=\"font-weight: 400;\">: deposit in bank, buy bonds, stocks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Early repayment<\/b><span style=\"font-weight: 400;\">: reduce interest costs and improve financial health.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By implementing this process, businesses can maintain liquidity, ensure sufficient cash flow for operations and development, thereby increasing competitiveness and firmly stepping on the path of sustainable growth.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cac_chi_so_KPI_va_thach_thuc_trong_viec_lap_ke_hoach_dong_tien\"><\/span><b>Key Performance Indicators (KPIs) and Challenges in Cash Flow Planning<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Cash flow management and planning KPIs help measure a business&#039;s liquidity and cash flow efficiency. Specifically:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cac_chi_so_KPI_dong_tien_quan_trong_can_theo_doi\"><\/span><b>Key Cash Flow KPIs to Track<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><a href=\"https:\/\/bizzi.vn\/dso-la-gi-phan-tich-chi-so-huyet-mach-trong-quan-ly-dong-tien-va-thu-hoi-cong-no\/\">DSO \u2013 Days Sales Outstanding<\/a> (Average number of days to collect payment from customers)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Measures the average time it takes a business to collect debt from its customers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Meaning: Low DSO \u2192 fast collection, increased liquidity; High DSO \u2192 risk of cash shortage and bad debt.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>DPO \u2013 Days Payable Outstanding (Average number of days to pay suppliers)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Measures the time it takes a business to pay its suppliers.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Meaning: High DPO \u2192 businesses keep cash longer, improving cash flow; DPO too high \u2192 affects supplier relationships.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Working Capital Cycle<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Calculated by: Working capital cycle = DSO + DIO \u2013 HPO<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">In which: DIO = Days Inventory Outstanding (number of days of inventory).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Meaning: Short cycle \u2192 fast cash flow, high profitability; long cycle \u2192 money locked in business operations.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Current Ratio \/ Quick Ratio<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Current Ratio = Current Assets \u00f7 Current Liabilities.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Quick Ratio = (Cash + Accounts Receivable + Short-Term Investments) \u00f7 Current Liabilities<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Meaning: Assess the ability of a business to pay short-term debt and protect liquidity against fluctuations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Fully tracking these indicators helps businesses optimize cash flow, prevent risks and make accurate business decisions.<\/p>\n<figure id=\"attachment_999978940\" aria-describedby=\"caption-attachment-999978940\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999978940\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-5.png\" alt=\"what is cash flow planning \" width=\"1200\" height=\"675\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-5.png 1280w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-5-300x169.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-5-1024x576.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-5-768x432.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-5-18x10.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978940\" class=\"wp-caption-text\">Cash Flow tracking interface, management KPIs &amp; cash flow planning will help measure the liquidity and efficiency of cash flow usage of the business.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Thach_thuc_pho_bien_va_sai_lam_can_tranh\"><\/span><b>Common Challenges and Mistakes to Avoid<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inaccurate data<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Data entry errors, outdated reports, or lack of clear classification between income\/expenses.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Consequence: unrealistic cash flow forecasts, leading to wrong investment or spending decisions.<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of inter-departmental coordination<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Sales, accounting, purchasing and financial management departments are not in sync.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Consequences: inconsistent cash flow forecasts, difficulty in controlling debt and liquidity.<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market uncertainty<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Fluctuations in raw material prices, exchange rate fluctuations, changes in customer behavior.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Consequence: cash flow plans are easily deviated, businesses need to have timely solutions.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Quan_ly_tai_chinh_thong_minh_voi_Bizzi_Chia_khoa_de_toi_uu_dong_tien_va_lap_ke_hoach_dong_tien\"><\/span><b>Smart financial management with Bizzi: The key to optimizing cash flow and cash flow planning<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><strong>Scenario Planning<\/strong> helps businesses forecast multiple scenarios and prepare plans, but it is still laborious and prone to errors. When applying the automation solution that Bizzi brings, the process becomes automatic, accurate and proactive, while providing tools to monitor, warn and optimize cash flow in real time, elevating from forecasting to strategic cash flow management and coordination.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The core difference between Scenario-based cash flow planning (<strong>Scenario Planning<\/strong>) and when Bizzi supports it, it comes down to the level of automation, accuracy and real-world responsiveness.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lap_ke_hoach_dong_tien_theo_Kich_ban_Scenario_Planning\"><\/span><b>Scenario Planning<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Traditional cash flow planning is often based on fixed assumptions, but markets and business operations are always changing. Scenario Planning is a method of forecasting cash flow under many different scenarios (normal, bad, optimal), helping businesses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Identify potential risks before they occur.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjust spending plans, loans or investments in a timely manner.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Compare the impact of business decisions on cash flow, thereby making more proactive and effective decisions.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cach_Bizzivn_giup_doanh_nghiep_kiem_soat_va_toi_uu_dong_tien\"><\/span><b>How Bizzi.vn helps businesses control and optimize cash flow<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bizzi helps businesses manage cash flow intelligently by automating spending processes, tracking customer debts, and providing visual reports on financial situations, thereby optimizing cash flow and supporting effective financial planning. <\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Expense Control \u2013 Real-time budget management (Bizzi Expense)<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Helps businesses track costs by department, project, or phase.<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Prevent overspending, protect cash flow.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Accounts Payable Automation (AP Automation)<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Ensure timely payments, reducing the risk of late fees and penalties.<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Integrate automatic reminders, approvals and recordings, saving time and increasing efficiency.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>3-way matching: Invoice \u2013 Purchase Order (PO) \u2013 Receiving Report (GR)<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Check the accuracy and validity of expenses before payment.<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid errors and fraud, strengthen Authoritativeness in <a href=\"https:\/\/bizzi.vn\/cac-nguyen-tac-quan-ly-tai-chinh-doanh-nghiep\/\">corporate financial management<\/a>.<\/span><\/li>\n<\/ul>\n<\/li>\n<li><b>Automate debt collection \u2013 Reduce DSO<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Automatic debt tracking system, customer reminders and accelerated cash flow into the business.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Results: shortened collection time, improved liquidity.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<figure id=\"attachment_999978941\" aria-describedby=\"caption-attachment-999978941\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978941\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6.png\" alt=\"what-is-a-cash-planning-6\" width=\"1200\" height=\"735\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6.png 2560w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6-300x184.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6-1024x627.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6-768x470.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6-1536x941.png 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6-2048x1254.png 2048w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/lap-ke-hoach-dong-tien-la-gi-6-18x12.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978941\" class=\"wp-caption-text\">The intuitive interface on the Bizzi system helps managers monitor and reconcile debts and important indicators (number of days outstanding \u2013 DSO, debt aging report, etc.)<\/figcaption><\/figure>\n<ul>\n<li style=\"list-style-type: none;\"><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Bizzi is not just an accounting software, but a cash flow strategy assistant, helping businesses proactively forecast, control and optimize cash flows, reduce risks and increase business efficiency.<\/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><span style=\"font-weight: 400;\">The entire cash flow planning process plays a core role in corporate financial management, helping to proactively forecast and coordinate cash flows. Compared to traditional management, the application of technology improves management efficiency by automating tasks, providing in-depth data analysis, and increasing forecast accuracy. Technology is the foundation for businesses to plan cash flows, make timely financial decisions, and optimize cash resources.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With a user-centric philosophy, Bizzi is committed to providing solutions and services that comply with international standards, while ensuring that user experience is a top priority. Bizzi offers comprehensive automation solutions, from expense control, invoice processing, debt management, to real-time expense reporting, helping businesses reduce errors, optimize cash flow and have an overview of financial health. As a result, Bizzi becomes a cash flow strategy assistant, supporting businesses to maintain liquidity and make effective business decisions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Link to register for a trial of Bizzi products: <\/span><a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\"><span style=\"font-weight: 400;\">https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Schedule a demo: <a href=\"https:\/\/bizzi.vn\/dat-lich-demo\/\">https:\/\/bizzi.vn\/dat-lich-demo\/<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Even if a business is profitable, failure to proactively plan cash flow can still lead to a liquidity crisis.<\/p>","protected":false},"author":56,"featured_media":999978938,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[76,84,372],"tags":[],"class_list":["post-999978936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-goc-nhin-cfo","category-thiet-lap","category-thanh-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978936","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=999978936"}],"version-history":[{"count":3,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978936\/revisions"}],"predecessor-version":[{"id":999978970,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978936\/revisions\/999978970"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999978938"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999978936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999978936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999978936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}