All stakeholders, internal and external, are the beneficiaries of accounting information. Accounting information helps the owners or shareholders in analyzing the return on their investments. It benefits the interested investors with showing them the overall financial picture of the company so that they can make the right decisions of whether to invest in a company. Further it helps the management to run the operations more efficiently and effectively. They can make future policies by analyzing current accounting information for example, if they see that the company will need more financing they can arrange for finance through loans, shares, etc.
Knowing all expenses and incomes the management can constantly try to reduce expenses where possible and increase revenue.
Knowing all expenses and incomes the management can constantly try to reduce expenses where possible and increase revenue.
