Accounting information helps users to make better financial decisions. Users of financial information may be both internal and external to the organization.
Internal users of accounting information include the following:
Management: for analyzing the organization's performance and position and taking appropriate measures to improve the company results.
Employees: for assessing company's profitability and its consequence on their future remuneration and job security.
Owners: for analyzing the viability and profitability of their investment and determining any future course of action.
Accounting information is presented to internal users usually in the form of management accounts, budgets, forecasts and financial statements.
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