JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY

KAKINADA

SCHOOL OF MANAGEMENT STUDIES

ACCOUNTING FOR MANAGERS

TOPICS : USERS OF ACCOUNTING INFORMATIONCES

PRESENTED BY-
P.JOSHNA
20SM1E0073
 CONTENT

Users Of Accounting Information

• Internal users

• External users
 ACCOUNTING INFORMATION

‘Accounting helps users in making better financial decisions.’

USERS OF ACCOUNTING :

Internal users

External users
 USES OF ACCOUNTING INFROMATION

INTERNAL USERS :

• Owners

• Managers

• Employess

EXTERNAL USERS :

• Investors

• Lenders and suppliers

• Customers

• Government agencies

• Public
 INTERNAL USERS

 OWNERS:
• Owners need to know how well their business is performing.

• Owners assess the profitability and risk of their business from financial statements.

 MANAGERS :
• Managers require accounting information to prepare budgets.

• Managers also need accounting information to monitor the performance of the

organization and to make business decision.

 EMPLOYEES :
• Employees are interested in knowing how well a company is performing as it could
have implications for their job security and income.
 EXTERNAL USERS

 INVESTORS :
• Investor rely on financial statements to assess the profitability, risk and worth of
their investment.

 LENDERS AND SUPPLIERS :

• Lenders and suppliers need to know accounting information of there clients to
assess their credit worthiness.

 CUSTOMERS:
• Customers need accounting information of suppliers to assess their ability to
deliver goods and services on a reliable basis in future
 GOVERNMENT :
• Government review accounting information of organizations to monitor
compliance with accounting and financial regulations.

 PUBLIC :
• General public may also be interested in the accounting information of
company these could include media, analyst, academics, activists and other
individuals with an interest in economic developments
REFERENCE
ACCOUNTING FOR MANAGEMENT-
M. E. THUKARAM RAO

THANK YOU