oboloo Glossary

Liquidity Accounting

oboloo Glossary

Liquidity Accounting

Liquidity Accounting is a financial term describing the process of maintaining and tracking the movement of money within an organization. It involves determining how much cash is available for use at any given time, measuring cash flows, and understanding how investments affect liquidity levels. By using liquidity accounting techniques, businesses can make sound financial decisions regarding budgets and investments. Having a good understanding of liquidity can help organizations stay on top of their finances and better prepare for the future.