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Small business accountants Melbourne explain what liquidity is

We need to know what liquidity is and how it ultimately affects your business, it also plays along with your business’ assets and liabilities. Our small business accountants Melbourne will tell you all about liquidity.

What is liquidity? It refers to a business or company’s ability to pay off short-term debts and meet all current liabilities. While that is the accounting definition it also means how quickly an asset can be sold in the market without affecting its price. Or the market liquidity refers to the extent a market within a country allows for assets to be bought and sold at stable prices.

Just remember when coming to our business accountants in Melbourne for advice that we can help manage all three components of liquidity!

Feel free to contact our small business accountants in Melbourne and ensure your debt and finances are always covered!

 
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