Interested Users of Information

  • Accounting is a means by which necessary financial information about business enterprise is communicated and is also called the language of business.
  • Many users need financial information in order to make important decisions.
  • These users can be divided into two broad categories: internal users
    and external users.
  • Internal users include: Chief Executive, Financial Officer, Vice President, Business Unit Managers, Plant Managers, Store Managers, Line Supervisors, etc.
  • External users include: present and potential Investors (shareholders), Creditors (Banks and other Financial Institutions, Debenture- holders and other Lenders), Tax Authorities, Regulatory Agencies (Department of Company Affairs, Registrar of Companies, Securities Exchange Board of India, Labour Unions, Trade Associations, Stock Exchange and Customers, etc.
  • Since the primary function of accounting is to provide useful information for decision-making, it is a means to an end, with the end being the decision that is helped by the availability of accounting information.


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