Financial Decision Quality and Business Sustainability: The Role of Cash Flow Visibility and Financial Planning Capability

Abstract

Financial decision quality is essential for small and medium enterprises (SMEs) to maintain financial stability and achieve business sustainability. However, the relationships among cash flow visibility, financial planning capability, financial decision quality, and business sustainability remain insufficiently examined in an integrated framework. This study reviews existing evidence on how financial knowledge, financial planning, and financial information systems relate to financial decision-making and sustainability outcomes in SMEs. A systematic literature review was conducted following PRISMA 2020 reporting principles. Searches conducted on 19 October 2026 identified 49 candidate records, of which eight empirical studies and one systematic review were retained for synthesis. The findings indicate that financial literacy and knowledge are consistently associated with better financial decisions, while accounting information quality and forecasting capacity may support decision-making. Financial planning, sustainable investment, and risk management are also associated with business sustainability. Nevertheless, none of the included empirical studies directly measures cash flow visibility or examines financial decision quality as a mediator between financial capabilities and business sustainability. Furthermore, sustainability is defined inconsistently across studies, limiting comparability. SMEs need to strengthen financial knowledge, planning routines, forecasting capabilities, and the quality of financial information. Future research should directly measure cash flow visibility, test the mediating role of financial decision quality, adopt consistent sustainability indicators, and expand empirical evidence from Indonesian SMEs.