Rahavirtoja

Rahavirtoja is the Finnish term for cash flows, referring to movements of money into and out of a person, company, or economy over a given period. It focuses on actual cash transactions rather than accounting profits or losses.

In accounting, rahavirrat are analyzed with the cash flow statement, which is typically divided into operating, investing, and financing activities. The statement shows how cash is generated and used, indicating liquidity and the ability to fund operations, growth, and debt obligations. In Finnish practice, these are often described as rahavirrat liiketoiminnasta, rahavirrat investoinneista, and rahavirrat rahoituksesta.

In macroeconomics and national accounts, rahavirtoja describe net cash movements between sectors, such as households, businesses, government, and the external sector. They help assess liquidity conditions, monetary dynamics, and the overall flow of money within an economy.

Importantly, cash flow differs from profit: a company may report positive cash flow while showing a loss, or vice versa, depending on timing of receipts, payments, and non-cash items like depreciation.

Related concepts include free cash flow, operating cash flow, and working capital. Cash flow analysis is governed by accounting standards such as IFRS and Finnish GAAP.