User Accounting Information, Usage and Field

Posted by Imam Larh on Saturday, 14 April 2018

User Accounting Information, Usage and Field
1. Internal User

Internal users are parties that conduct business, such as household consumption and production households. In this case is the leader of the company (manager) who is responsible for making a decision. 


Every household consumption and production households require financial information to achieve the expected goal of reaching the maximum profit with certain sacrifices. Therefore, a systematic way of recording is required in order to analyze financial transactions into useful economic information.

2. External Users

External parties are parties with an interest in a business or company but are parties outside the company. For example, the bank that gives credit (loan). The bank needs to ascertain whether the debtor (company) given the credit facility can pay off all the loan at the appointed time so that the bank avoid the problem of bad credit?

3. Use of Accounting Information


Accounting presents data collection techniques. The role becomes the language of economic communication, both for individuals and business entities. It is known that anyone who uses their accounting information is an investor, creditor, government, employee, as well as manager or corporate leader. 


Accounting information is useful to them as a basis for decision making as well as evidence of management's accountability to the owner, in addition to evidence to know the company's progress from year to year.

Thus, the use of accounting is
a. to obtain corporate financial information;
b. for evidence of management's liability to the owner;
c. to know the progress of the company.

Field of Accounting

The rapid growth of the economy as well as the increasing complexity of enterprise problems driven by technological advances, and increased government regulation of corporate activities, accountants are required to specialize their expertise in accounting. The special areas of accounting can be grouped as follows.

1. Financial Accounting
Financial accounting is also called general accounting, namely accounting related to transaction recording companies and the preparation of periodic financial statements that are guided by accounting principles. The financial statements can be used as internal and external corporate information.

Read Also: Code Account in Accounting

2. Auditing Accounting
Accounting examination is an accounting activity related to financial examination or general accounting. Public accounting conducts checks on records that support financial statements by stating the feasibility and credibility of a report.

3. Management Accounting
The central point in management accounting is information for the parties within the company. The usefulness of management accounting, among others, controls the company's activities, monitors cash flow, and assesses alternatives in decision-making. 

For example, in terms of selling prices, expenditures, production methods, and investments. This field of accounting also deals with the specific problems faced by corporate managers from different levels of the organization using historical data or interpretation data.

4. Cost Accounting
Cost accounting is the area of accounting that emphasizes activities on costing and control over costs, especially those related to the cost of producing a good. In addition, one of the main functions of cost accounting is to collect and analyze data on costs, both issued and planned to be issued for use by corporate leaders as a means of control over existing activities and tools for future planning.5. Tax Accounting

The field of taxation accounting prepares tax returns and considers the tax consequences of planned business transactions.

6. Budgeting Accounting
Budget accounting is the area of accounting associated with the preparation of financial plans concerning the activities of the company for a certain period in the future as well as analysis and control.

Tag: Accounting information

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