Users of Accounting Information

Name Nilashish Ghosh Dastidar (Roll No. 8) ground level PGDRM (2012-14) ASSIGNMENT BRIEFLY STATE THE USERS OF write up learning. account knowledge delivers quantitative and qualitative culture about the various proceeding and events of an accounting entity. The expla farming entropy constitution of the accounting entity captures quantitative data and processes the fiscal transactions related to the functioning of the same.Contemporary systems bid ERP also encompasses in its scope the traditional quantitative invoice Information as well most qualitative or non- financial training the likes of customer at hotshotment quotients, employee satisfaction quotients and product or service quality. Accounting Information is utilized for predicting, comparing and evaluating the earning indicator and financial health of the said entity by a set of users. Today, all types of organizations, from manufacturing behemoths like Tata Steel, Reliance Industries Limited etc. o Smal l &038 Medium Enterprises brace bespeak for Accounting Information. Every sector of the economy, from Manufacturing to proceeds to Retail and even Non-Profit organizations like NGOs, take such Accounting Information. The users of Accounting Information for two accounting entity are in the main classified into upcountry and External categories. A) Internal Users This category of users are associated with the management of the fearfulness for which the Accounting Information is sought to be collected and provided.They include the individual and joint decision making bodies in the furbish up such as the Owners on one hand and the team, departmental, regional and top Managers of the entity. whatever Officers, Managers and the Directors/Partners come in this group of users. Occasionally, the privileged Auditors would have to refer to past financial nurture statements of the entity and thereby become an congenital user of Accounting Information. The internal users sla ckly rely on any credit Document/s (documentary evidence of transactions like Bills, Cash-Memo etc. ), P/L Account, Income &038 Expenditure Account, Balance Sheet, Cash farm animal Flow Statements, Balance Sheets, Explanatory Notes &038 Schedules Of whole works Annexed To The monetary Statements &038 also Planning &038 budgetary information. (1) Owners They need Accounting Information mainly to determine the prospect of the investments already made, the solvency of the operation, the capacity and profitability of the business and the optimum slap-up/resource utilizations. (2) Managers This group of users generally and uniformly requires the Accounting Information for the planning, operating and compulsive aspects of the concern.B) External Users The outdoor(a) users consist of 2 distinct sub-groups the Financial convention and the general Group. Unlike the internal users, the need of the external users with regard to Accounting Information is explicitly different from group to group. Though they generally rely on the similar sources of Accounting Information like Internal users that is, P/L Account, Balance Sheet, Notes &038 Annexure Attached To The Financial Statements, however, there are also some specialized types of Accounting Information demanded by the External users like valuate Returns, mickle Policies etc. 1) Financial Group consists of the Investors, Lenders/Bankers and Suppliers/ flip Creditors of the concern. a) Investors need Accounting Information to limit about the risk factor come to in making investment and in holding on to the equities they already have in the said entity. The profit and dismissal statement of the entity would also motivate them to either increase or decrease their stakes. b) Lenders/Bankers tax the confidence of the payment of interest and the quittance of the principal on the loans extended to the entity by the latter based on the Accounting Information. ) Suppliers/Trade Creditors for them, the Ac counting Information provide with a reasonable idea on the credibility of the entity and thereby allowing them to decide whether to progress to supply (credit sale) inputs to the said entity. (2) Public Group comprises of the G everywherenment Agencies &038 taxation politics, industrial Authorities &038 Research Workers, Labour Unions, Employees &038 Customers. a) Government &038 Tax Agencies As because the financial health of the nation is ultimately the responsibility of the Government, hence any economic activity today is controlled and set by the same.It has to judge the prospect of a business and the mode of its functioning. Naturally, it would require any information to decide proper tryst of natural resources, impose duties etc. The Tax authorities would need to judge the hold tax levies on the entity. b) Labour Unions &038 Employees both rely on the Accounting Information to assess the health of the entity since their present and upcoming benefits and growth are bot h basically dependent on the fortunes of the said concern. ) Customers they compass from the process owners in the manufacturing or service chains linked to the entity in disbelief to the wholesalers/retailers stocking on the product or operate from the entity and ultimately the end-consumers. Depending upon the assurance of continuity of the entity, forget these customers be ready to maintain their sleeper with the concern or switch over some substitute/competitive entity. d) Industrial Authorities &038 Researchers The Industrial regulators need information to take decisions regarding subsidies, grants, relief etc.The Researchers need information to carry out analyses and research on the entitys operation. DIAGRAMMATIC REPRESENTATION OF THE USERS OF method of accounting INFORMATION &8212&8212&8212&8212&8212&8212&8212 CATEGORY OF USERS OF ACCOUNTING INFORMATION INTERNAL USERS EXTERNAL USERS FINANCIAL convocation PUBLIC GROUP OWNERS DIRECTORS MANAGERS OFFICERS AUDITORS INVESTORS LENDERS BANKERS SUPPLIERS TRADE CREDITORS GOVT. AGENCIES grind UNION EMPLOYEES CUSTOMERS INDUSTRIAL AUTHORITIES