Persons interested in Accounting: Accounting information is used by internal users. Internal users are the people that run, manage, and operate the day-to-day operations of a company’s internal operations.
- Owners and stockholders are two groups of people that own a company.
- Directors,
- Managers,
- Officers
- Departments inside the company.
- Employees
- Internal Auditor is a term used to describe a person who works
The following are examples of external consumers of accounting data:
- Creditors
- Investors
- Government
- Partners in trade.
- Agencies in charge of regulation.
Persons interested in Accounting
- Owners: Accounting’s main goal is to give owners with the information they need to run their firm. For example, a company’s shareholders are interested in accounting information in order to determine the company’s profitability and financial soundness.
- Management: The ownership and management roles are separated in big company enterprises. Because of their obligation to the owners for improved performance, the managements of such businesses are more concerned with accounting data.
- Creditors: Trade creditors, debenture holders, bankers, and other lending institutions want to know the company’s short- and long-term financial status. The needed information for determining such a position may be found in the financial accounts.
- Regulatory Organizations: Accounting reports are used by many governments and other organisations not just for tax purposes, but also to analyse how effectively various businesses are performing within a regulated framework.
- Government: Financial statements are used by governments all over the globe to compile information about corporate units, which then aid in the compilation of national accounts.
- Interested parties: Investors are increasingly relying on information from accounting reports to assess the relative advantages of different investment options.
- Employees: Employees are interested in the company’s profitability since their pay raises and incentive payments are based on the amount of profit made.
- Researchers: Accounting data is also used by research researchers in their studies of accounting theory and corporate affairs and practises. Financial analysts and consultants, financial journalism and reporting, trade groups, labour unions, customers, and the general public are among those who have an indirect interest in commercial operation. As a result, the number of current and prospective consumers of accounting data is rather considerable.