Who are the people that make use of accounting information?

The users of prepared accounting reports are the people who base their decisions on the accounting reports they come across. These users are divided into two major groups – internal and external users.
The Internal Users
The internal users are the people who are part of the entity whose accounting information is to be used. These are:
1. Management
They need accounting information about the business to enable them appraise the efficiency and effectiveness of the policies they initiate, to plan for the growth of the business and to control the scarce resources of the business entity that they manage. The management are the owners of the business in the case of sole proprietors, or the people employed to run the business for the owners in the case of limited liability companies.
2. Workers / Employees
The employees of the business entity need accounting information to enable them ascertain the security of their jobs and to negotiate for improved welfare as regards salaries and wages.
The External Users
The external users are people outside the business entity. They include
1. Customers
2. Suppliers
3. Tax authorities (for the purpose of making the entity pay tax)
4. Regulatory authorities (such as CBN, SEC, PENCOM, etc)
5. Competitors