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Users of accounting information
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Top 10 users of accounting information

The financial records of a company are important to many persons, businesses and institutions for several reasons. These users of accounting information have their own interests in the success of a business which is why accuracy is so important.

Users of accounting information are divided into internal and external users. Here, students of basic accounting, can learn about the top 10 users of accounting information and their interests in the success of a business.

10 Users of accounting information

Internal users

Owners and shareholders

The owners and shareholders of a business are the first users of accounting information. These people have invested either their savings, time and energy into the business with the expectation to receive profits to take care of themselves and their families.


The manager of a business who may or may not be the owner is another user of accounting information. The information helps the manager to spot problems and opportunities to make proper decisions. The decisions made by this person will determine the success or failure of the business.


The employees are users of accounting information as they need to know the stability of their jobs. A business that is doing well allows employees to qualify for loans and mortgages at financial institutions, and for hire purchase at furniture stores.

External users


Customers are users of accounting information as they need to know if the products and services that they desire will be available. Loyal customers of a particular brand or service may not respond well to changes in quality of products and services when a business is not doing so well.


Suppliers care about the accounting information of a business because they need purchases from a successful business. Suppliers also want to ensure that business is growing and ongoing in the future.


Banks that have provided loans to a business are users of accounting information. They must ensure that the business can pay off the funds and the interest on the loans. When the business is successful, the banks can provide more loans for expansion and the business will be able to pay them off on time.

Potential investors

Potential investors are persons and businesses that are users of accounting information. The success of a business may be of interest to them because they will be able to get a return on their investment into the business.


Competitors are businesses of a similar nature and are interested in the accounting information of another business as they target the same customers. They compare their prices, products, services and strategies to make themselves more competitive in the market.


The community consists of members of the general public who are interested in the accounting information of a business for different reasons. People want employment. They want to know if the business is making profits at the expense of the environment. Also, the community is concerned about the contribution that the business is making to the local community.


The Government is another user of accounting information for the purpose of collecting tax. A successful business allows the Government to collect taxes on products both locally and imported, incomes of employees, profits of businesses, properties, and bank accounts.


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