This includes for example preparing and reviewing various financial reports such as financial statements. Besides, accounting information is useful to help mangers to do their jobs better.
Investors: Investors use accounting information to determine whether a company is a good investment. Usually, suppliers are compensatedeither in cash or in credit basis. Occasionally, tax authorities conduct audits of the tax returns filed by businesses in order to verify the information with the underlying accounting records.
Owners Owners invest capital to start and run business with the primary objective to earn profit. The Employees Branches of Accounting and Their Relevance to Organizations Financial Accounting Management Accounting and Cost Accounting Accounting and Social Practice Positive Impacts of Corporate Governance Negative Impacts of Corporate Governance with regard to Disclosure Accounting Information Systems References Introduction At the time of its inception, accounting was developed specifically in order to record and classify monetary transactions as well as provide the financial results of the operations of entities.
The Government and its agencies 7.
Managers rely on accounting data to form their business decisions such as investment, financing and pricing decisions. Continuity in supply of quality inputs is essential for any business. Regulatory Authorities — The accounting information is needed for them to ensure that it is in accordance with the rules and regulations and that it protects the interests of the stake holders who rely on such information.
He has worked as an accountant and consultant for more than 25 years in all types of industries. Since the customers are reliant on the organizations for the products or services for the purpose of personal consumption or for resale, their main purpose for accounting information is in order to evaluate the capability of the firms to continue supplying them with their needs in the future.
External users are people outside the business entity organization who use accounting information.
The accounting information is used by both actual and potential investors.