Accounting is a system of identifying classifying, recording, summarizing, analyzing and reporting financial data and information of organization in accordance with accepted principles, concepts, conventions, and standards and regulations.
Referred to the meaning of accounting, we can possibly said the users of accounting information can be:
• Owner(s) of the business.
They want to be able to see whether or not the business is profitable. In addition they want to know what the financial resources business are.
• A prospective buyer.
When the owner wants to sell their business the buyer will want to see such information.
• The Bank.
If the owners want to borrow money for use in the business, then the bank will need such information.
• Tax inspectors.
They need it to be able to calculate the taxes payable.
• A prospective partner.
If the owners want to share ownership with someone else, then the would- be partner will want such information.
• Investors, either existing ones or people wondering whether or not to invest their money in the business.
They could be any other users who need the accounting information for their own importance.
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