Users of Accounting Information

हिन्दी में पढ़ें:

When an organization is established, many persons are directly and indirectly associated with it and have an interest in it and this interest can be various such as what is the status of the organization, how is its performance, what is its liability, what is its goodwill, etc. and the person who are interested in the organization are called users of the organization and when they are interested in accounting information they are called users of accounting information.

For better understanding the users of accounting information are classified into two parts, one is internal users and the other is external users. Internal users include persons inside the organization like owners, employees, management, etc. and external users include persons outside the management like creditors, government bodies, investors, banks, etc. and all of them are directly or indirectly interested in the accounting information of the organization.

Users of Accounting Information

Users of Accounting Information

The users of accounting information are classified into two parts:

  • Internal Users
  • External Users

Internal Users

The following are the internal users of accounting information:

1. Owner:

The first user who is interested in accounting information is the owner of the organization because he wants to know the result of the investment made by him like what is the status of the organization, how is its performance, what is the return on investment, what is the profit and loss ratio, how much is the stock, how much is the asset, how much is the debtor and creditor, etc. The owner of the organization can use it to prepare strategy, policy, plan, etc. for the future.

2. Management:

The management of the organization is also one of the users of accounting information as it uses accounting information for various types of decision-making, planning, etc. In a small organization, all the functions like decision-making, planning, etc. can be done by the owner but in a large organization, a separate department is set up for such functions but note that this may not be the case every time.

3. Employees:

Employees are also one of the users of accounting information as they use it in various fields like business planning, planning for themselves, etc. If an organization has an employee union, then they also use it in various fields like demanding better salaries, a better environment, etc.


External Users

The following are the external users of accounting information:

1. Creditors:

Creditors play an important role in the development of the organization because they provide products in the form of credit to the organization and they give credit to anyone only when they feel that the organization can repay the credit and they get to know this through accounting information or from the past behavior of the organization, so creditors are also one of the users of financial information.

2. Government Bodies:

Government bodies are also the users of the accounting information of the organization as they use it to assess the profit, liability, limits, etc. For example, the Income Tax Department uses it to calculate the income tax of the organization, Regulatory Bodies use it to maintain records, etc.

3. Investors:

Investors are those who invest their resources and they invest their resources in an organization only when they have a chance of getting returns from the investment and this is known to them through accounting information, so investors are also one of the users of accounting information

4. Lenders:

Lenders include NBFCs, banks, and other financial institutions and they lend money to the organization or give money in the form of securities. They give loans to any organization only when they feel that it is capable of repaying the loan and this is known to them through accounting information, so lenders are also one of the users of accounting information

Note: Above not describe all users of accounting information.


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QNA/FAQ

Q1. Write examples of internal users of accounting information.

Ans: Owners, management, employees, managers, etc. are examples of internal users of accounting information.

Q2. Write examples of external users of accounting information.

Ans: Creditors, investors, lenders, government bodies, etc. are examples of external users of accounting information.

Q3. Who is the user of accounting information?

Ans: Those who are interested in accounting information are the users of accounting information.

Q4. Who is the first intended user of accounting information?

Ans: The owner of the organization is the first intended user of accounting information.

Q5. How is the lender a user of accounting information?

Ans: The lender looks at the accounting information before giving a loan to the organization so the lender is the user of accounting information.

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