The main use of accounting is to record all financial transactions of a business (expenses, purchases, investments) to prepare financial statements and present such information in an orderly manner to third parties.
Users of accounting, third party:
Partners or Investors
Government entities
Financial institutions or lenders
Shareholders
Suppliers
Consultants, advisors
Partners or investors.
When we convince them to invest or be part of our business or company.
Government entities
Accounting is required when filing taxes.
Financial institutions such as banks and lenders.
When seeking financing.
Shareholders
When we want to acknowledge the financial performance of the business.
Provider.
When we get more comfortable priced raw materials or seek to obtain larger loans.
Consultants, advisors.
When we need to show financial information and thus experts advise it on how to improve the business.
Accounting information is useful for proof of competitiveness, profitability and productivity of a company to all traders.
Accounting is useful both internally and externally. Internally we can know the current status of the company and compare it to an earlier period.
Externally, as we realized serves to provide accurate information on a company’s financial condition and based on that information to get loans to accelerate business growth.
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Posted in Business Innovation | 
Tags: Accountancy, business, Company, Financial institution, Investment, Investor, Uses of Accounting in a Business