View our full Glossary of accounting & payroll terms Visit full glossary Glossary definition What is liquidity? In accounting terms, liquidity is the extent to which a company has access to liquid assets, with reference to its ability to pay debts. Subscribe to the Sage Advice enewsletter Get a roundup of our best business advice in your inbox every month. Subscribe See this term in action Project financial management: 6 best practice tips to follow 17 June, 2020 Coronavirus Self-Employment Income Support Scheme: What you need to know 9 June, 2020 Helping your business bounce back: Making the most of government support 9 June, 2020 Subscribe to the Sage Advice enewsletter Get a roundup of our best business advice in your inbox every month. Subscribe Related topics Business finances Search for another term Search for: Learn more about this definition and others Featured reading Flexible furlough: What it means for your payroll processes Coronavirus: What financial support is available for your business? Coronavirus Job Retention Scheme FAQ: What it means for employers Popular termsWhat is a nominal ledger?What is a P14?What is a P35?What is RTI?