users of accounting information

• Internal Users – People within a business organization who use accounting information.

  Ownersneed accounting information to determine whether they should withdraw or increase their investments and what their investment is worth.

  Managersneed accounting information to study the profitability and financial condition of the business.

  Employeesexamine a business’s profitability, stability, and its impact on their salary and job security.
• External Users of Accounting Information

  • Investors
  • Creditors/Lenders
  • Customers
  • Suppliers
  • Government (Government Agencies/Tax Authorities/Auditors)
  • Public
• Investors


  Accounting information will help them decide whether to invest in the business
• Creditors/Lenders


  Use accounting information to assess the business's creditworthiness and capability to repay its obligation, including the related interests on the maturity date
• Customers


  Are interested in an enterprise's continuance, especially when they have a long-term involvement with or depend on it
• Suppliers


  Use accounting information to determine whether the debts owed to them will be paid when due or whether the customer has enough funds or resources to pay for the goods to be delivered or the services rendered
• Government (Government Agencies/Tax Authorities/Auditors)


  Ensure that the company's disclosure of accounting information follows the rules and regulations set to protect the interest of the stakeholders that rely on such information
• Public


  Use financial information to know the trends and recent developments in the prosperity of the enterprise and the range of its activities