User of Accounting information

 5. The context and purpose of the accounting function in meeting the expectations of the organization and its stakeholders

Accounting can be considered the backbone of finance. It includes money tracking and providing information systems to various stakeholders thereby contributing to the prosperity of business to society. However, to use accounting effectively, one must understand its strengths and weaknesses as well as the requirements of stakeholders.

*Shareholder

Shareholders rely on accounting information to help investors evaluate the financial situation of the business. That information includes the financial performance, profits, and liquidity of the company... From there, it helps shareholders to evaluate the potential and risks and thereby make wise decisions for their investments (Franklin et al., 2019).

*Creditors

Stakeholders such as banks, and suppliers... use information from accounting to evaluate and monitor the reliability of a company. By analyzing financial reports, including balance sheets, income statements, etc., conclusions can be drawn about the company's ability to pay debt. Using the above measures, creditors can make decisions about extending credit or borrowing capital (Franklin et al., 2019).

*Staff

Employees look for information about the profits and other accounting information of the business, from which they can determine the financial situation and development potential of the business they are operating in, which helps their employees. employee's career decision-making process. Besides, maintaining the ability to work effectively while still balancing life outside the business (Franklin et al., 2019).

*Government and regulatory agencies

With the purpose of using accounting information to determine the financial situation of the business, from there, we can make decisions about the tax obligations that the business must pay. In addition, accounting information also allows the government and regulatory agencies to ensure business operations comply with laws and regulations, thereby providing reasonable measures for schools. bad cases and ensure fair competition in the market (Franklin et al., 2019).

*Suppliers and Vendors

Suppliers and Vendors use business accounting information to evaluate the creditworthiness and financial stability of the business they are cooperating with, such information includes payment history and credit terms. your business's accounts and receivables, from which you can make decisions about beneficial negotiations as well as establish long-term relationships (Franklin et al., 2019).

*Client

Business customers often use information related to finance, invoices, documents, tax-related documents... from which customers can draw conclusions about the level of reputation and product quality. products, product reliability... Such information helps businesses improve customer experience, thereby helping customers make wise decisions about purchasing the business's products (Franklin et al., 2019).

*Investors and potential investors

They often use accounting information such as a business's financial performance, trends and competitive landscape. From there, they can evaluate the financial situation, value and development ability of the business. That information helps them to draw conclusions about the investment potential of the business and then make decisions (Franklin et al., 2019).