Users of Accounting
Users of accounting are both internal and external to the organization.
Owner: Financial statements provide information to owners about the profitability of the overall business as well as individual products and geographic segments.
Managers: Managers need accounting information to plan, monitor and make business decisions.
Employees: For the employees operating in the finance department, using accounting information is usually part of their job description.
Investors: Investors use accounting information to determine whether an investment is a good fit for their portfolio and whether they should hold, increase or decrease their investment.
Lendors: Lenders use accounting information of borrowers to assess their credit worthiness, i.e. their ability to pay back any loan. Lenders offer loans and other credit facilities on terms that are based on the assessment of financial health of borrowers.
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