Management 2. Labour Unions are also vitally interested in the stability and profitability of the organisation that hires them or in which the employees are working. Management 2. Lenders: Lenders use accounting data to judge the creditworthiness of the firm. Terms of Service 7. The users are: 1. User # 2. Internal users include the management, sales managers, production managers, purchasing managers and administrative staff of the entity. Users with Indirect Financial Interest. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. There are some other users who have indirect interest in the business of a company or who use accounting information to help others having direct interest in a company’s profitability and financial position. Customers may use financial statement data to forecast the likelihood and/or timing of a firm going bankrupt or being unable to meet its commitments. The users who have direct financial interest in a company are existing and potential investors and creditors. The following points highlight the three important users of accounting information. The other users such as consumers’ groups, economists, financial press and the general public have become more concerned about business enterprises as well as with the effects that these enterprises have on the environment, social problems, inflation, and the quality of life. You may need to download version 2.0 now from the Chrome Web Store. Banks, finance Companies, mortgage companies, investment companies, insurance companies, individual creditors and similar other individuals and groups who lend money need accounting information to analyse a company’s profitability, liquidity and financial position before making a loan to the company. Accounting Information is utilized for “predicting”, “comparing” and “evaluating” the earning power and financial health of the said entity by a set of users. This is because the data provides most recent measure of a company’s performance. In particular, prospective and present employees may use the financial reports to assess risk and growth potential of a company, therefore job security and future promotional possibilities. Users of Accounting Information. Content Guidelines 2. Today, all types of organizations, from manufacturing behemoths like Tata Steel, Reliance Industries Limited etc. Users Following may be possible users of accounting information Business owners: Owners want to be in picture whether their business is profitable or not and what financial resources they have. Email: firstname.lastname@example.org. The creditors are interested in knowing whether the company will have enough cash to pay interest charges and repay the debt at the due date. This information may be important in estimating the value of a warranty or in predicting the availability of supporting services or continuing supply of goods over an extended period of time. Managers perform many managerial functions such as planning, controlling, directing, measuring, evaluating and taking corrective actions. Your IP: 220.127.116.11 Taxation authorities require financial statements to ascertain tax liability of a company. Due to this, management is.one of the most important users of accounting information and a major function of accounting is to provide useful information to management. Owners of the business are the reason why business exist.