Who are the users of financial accounting information?

Why do users of accounting information need accounting information?

• Answer:

  External users of accounting information (especially investors) use accounting information like annual and quarterly reports to base their investing decisions on, and to compare different companies with one another. Internal users of accounting (mostly managers) use internal accounting information in order to plan for the future. Therefore accounting information is not only vital to the one's individual business or investments but is also of great benefit to the wider society and the world at large. In addition to which this will allow each country to organize their funds in a more systematic approach as such making room for development of one's country and the upward social mobility of the people of that specifis country. In all simplicity, accounting information prepares us for the future.