Internal & External Users

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Internal users:

Internal users i.e managers and employees who actually work for the business. Managers are also called internal decision makers. who need information about the company’s business activities to manage the operating, investing and financing activities of the firm.

This accounting information for internal decision makers is called managerial accounting.

External users:

 External users i.e lenders, Stockholders (Owners),other creditors (suppliers), investors, customers, governmental regulatory and taxing agencies. 

Stockholders and creditors are also called external decision makers and the accounting information for the external decision makers is called financial accounting and basic periodical financial statements produced by that financial accounting. Creditors make money on the loans by charging interest. Part owners or stockholders hope to receive  a portion of what the company earns in the form of cash payments called dividends and also sell their shares at a higher price. They need information about business activities as well to assess whether the company will be able to pay back its debts with interest and pay dividends.




                            

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