Liquidity planning is an essential part of a company's financial planning and refers to the forecasting and management of available cash reserves. The goal of liquidity planning is to ensure that a company always has sufficient liquid assets to meet its short-term payment obligations. Liquidity planning involves forecasting the company’s inflows and outflows over a specific period, typically a month, a quarter, or a year. All expected revenues and expenses are taken into account, including sales, purchases, personnel costs, rent payments, taxes, and other financial obligations.