Learning Materials For Accounting, Management , Finance And Economics.

Saturday, October 31, 2009

Internal Users Of Accounting Information

Accounting provides important data and information to both external and internal users.External users are the groups or persons outside the organization and internal users of accounting information are persons related to the organisation itself such as owners or shareholders, management and employees.

1. Owners 

Business owners want to know whether their funds are being properly used or not. Accounting information helps them them to know the profitability and the financial position of the concern in which they have invested their funds.

2. Management 

Accounting information is called the eyes and ears of management.It helps a manager in appraising the performance of the subordinates. It also helps the management to make various financial decisions.

3. Employees

Employees of the organisation can get the actual information about the financial position of their organisation with the help of financial statements prepared by the accountant.