Accounting provides information both to internal users and the external users. The
internal users are all the organizational participants, at all levels of management (i.e.
top, middle and lower). Generally top: level management requires information for
planning, middle level management which requires information for controlling the
operations. For internal use, the information is usually provided in the form of reports,
for instance Cash Budget Reports, Production Reports, Idle Time Reports, Feedback
Reports, whether to retain or replace an equipment decision reports, project
appraisal report, and the like.
There are also the external users (e.g. Banks, Creditors). They do not have direct
access to all the record ‘of an enterprise, they have to rely on financial statements as
the source of information. External users are basically, interested in the solvency and
profitability of an enterprise.