Rahavoogu

Rahavoogu is a term of Estonian origin that translates to "cash flow." It refers to the movement of money into and out of a business, project, or individual's finances over a specific period. Understanding rahavoogu is crucial for financial health and decision-making.

In a business context, rahavoogu encompasses all incoming cash from sales, investments, or loans, and outgoing cash for expenses, salaries, taxes, and debt repayment. Positive rahavoogu means more money is coming in than going out, indicating solvency and the ability to meet financial obligations. Negative rahavoogu, on the other hand, suggests a potential shortfall, requiring careful management and potentially external funding.

Analyzing rahavoogu involves tracking and forecasting these movements. This helps businesses identify trends, assess their liquidity, and plan for future financial needs. For individuals, rahavoogu refers to their personal income and expenses, and managing it effectively is key to achieving financial goals like saving, investing, or debt reduction. Tools like balance sheets and cash flow statements are commonly used to monitor and analyze rahavoogu. Effective management of rahavoogu is a cornerstone of sound financial practice.