Users of Accounting Information :

Accounting is of primary importance to the proprietors and the managers. However, other persons such as creditors, prospective investors, etc. are also interested in the accounting information.

(i) Owners/Shareholders: The primary aim of accounting is to provide necessary information to the owners related to their business.

(ii) Managers: In large business organizations and in corporations, there is a separation of ownership and management functions. The managers of such business houses are more concerned with the accounting information because they are answerable to the owners.

(iii) Prospective Investors: The persons who are contemplating an investment in a business will like to know about its profitability and financial position. They derive this information from the accounting reports of the concern.

(iv) Creditors, Bankers and other Lending Institutions: Trade creditors, bankers and other lending institutions would like to be satisfied that they will be paid on time. The financial statements help them in judging such position. Banks and other lending agencies rely heavily upon accounting statements for determining the acceptability of a loan application.

(v) Government: The Government is interested in the financial statements of business enterprise on account of taxation, labor and corporate laws.

(vi) Employees: Employees are interested in financial statements because increase in their salaries and wages and payment of bonus depends on the size of the profit earned.

(vii) Regulatory Agencies: Various Government departments and agencies such as Company Law Board, Registrar of Companies, Tax Authorities etc. use accounting reports not only as a basis for tax assessment but also in evaluating how well various businesses are operating under regulatory legislation.

(viii) Researchers: Accounting data are also used by the research scholars in their research in accounting theory as well as business affairs and practices.

(ix) Customers: Customers may also have either short-term or long-term interest in the business entity to know the profitability, liquidity and solvency position of the company.