| Accounting plays a very important role in all | | | | look at a company's balance sheet and profit and |
| businesses but it is not just the business itself | | | | loss account to see if and how much credit they |
| that finds accounting information useful. There are | | | | are willing to give to present and potential |
| other stake holders who rely on accounting | | | | customers. |
| information to make decisions. These stakeholders | | | | 4. Lenders - Similar to suppliers lenders also need |
| include: | | | | to make sure a company is in a healthy financial |
| 1. Shareholders - Shareholders use the balance | | | | situation before they start to lend money. |
| sheet and profit and loss account produced by | | | | 5. Government - Governments use the |
| limited companies to decide if they are going to | | | | information provided by a company about its |
| increase or decrease their holding. | | | | finances to levy tax on the profits. |
| 2. Management - Management in every level of | | | | 6. Customers - Before another company |
| the business from director level to supervisor | | | | becomes a customer or enters into a joint |
| level rely on accounting information to do their job | | | | venture, they will look at the company's finances |
| properly. They all use the same information for | | | | to make sure the company is not in trouble and |
| different purposes. For example, directors use it | | | | that their supplies are not about to dry up. |
| for strategic purposes and middle management | | | | 7. Employees - Employees also have an interest in |
| can use it to see if they are meeting their financial | | | | how well their employer is doing so use financial |
| targets. | | | | accounting information for this purpose. |
| 3. Suppliers - Along with other data suppliers will | | | | |