Users Of Accounting Data

Who Uses Accounting Data ??!!

    The information that a user of financial information needs depends upon the kinds of decisions the user makes. There are two broad groups of users of financial information:
* Internal users
* External users

internal users:

    internal users of accounting information are those individuals inside a company who plan, organize, and run the business. These include marketing managers, production supervisors, finance directors and company officers. In running a business, internal users must answer many important questions. to answer these and other questions, internal users need detailed information on a timely basis. Managerial accounting provides internal reports to help users make decisions about their companies. Examples are financial comparisons of operating alternatives, Projections of income from new sales campaigns, and forecasts of cash needs for the next year.

external users:

    External users are individuals and organizations outside a company who want financial information about the company. the two most common types of external users are investors and creditors. investors (owners) use accounting information to make decisions to buy, hold, or sell ownership shares of a company.creditors (such as suppliers and bankers) use accounting information to evaluate the risks of granting credit or lending money.

    Financial accounting answers these questions. It provides economic and financial information for investors , creditors, and other external users. the information needs of external users vary considerably. Taxing authorities ( such as regulatory agencies) want to know whether the company complies with tax laws.