What are the various users of management accounting information?

Answer: 

Considering that accounting information must be useful in the decision-making process, therefore, Comprehensibility is specified as a specific characteristic for users, in this sense, accounting information must be easily understandable by users with reasonable knowledge of the businesses and activities economic.

 In relation to the different users of accounting information, these can be: shareholders, creditors, investors, clients, administrators, governments, among others. It is convenient to specify that accounting is not an end, but rather a means to an end.

 Based on the different information needs of the different user segments, the total information generated in an economic organization is classified into three subsystems.

• Financial Accounting

 Financial accounting refers to information that describes the financial resources, obligations and activities of an economic entity (either an organization or an individual). Accountants use the term financial position to describe an entity's financial resources and obligations at a point in time, and the term result of operations to describe its activities during the year.

 Financial accounting information is designed primarily to help investors and creditors decide where to place scarce investment resources.These decisions are important to society, as they determine which companies and industries will receive the financial resources necessary for growth and which will not. 

• Tax Accounting

 The information system related to tax obligations is known as fiscal accounting. This type of accounting is based on the fiscal regulations established by law, it contemplates the registration of operations for the presentation of returns and the payment of taxes. Tax accounting is useful only for government authorities, that is, the tax administration.

• Administrative Accounting

 Administrative accounting includes the development and interpretation of accounting information specifically intended to help management manage the business. Managers use this information when setting overall company goals, evaluating individual and department performance, deciding whether to introduce a new product line, and making virtually all types of managerial decisions.

 Much of the managerial accounting information is financial in nature, but has been organized in such a way that it relates directly to the decision at hand, however, managerial accounting information often includes evaluations of non-financial factors, such as political considerations. , environmental, economic, product quality, customer satisfaction and worker productivity.

Users of accounting information can be classified into internal and external.

• Internal users.

1. Owners / partners of the company. They wait for the results to see if they receive a dividend and see their investment returned.

2. Directors / managers. Their salaries are usually linked to the company's achievements in terms of profitability, business objectives or activity.

3. Middle managers.

• External users.

1. Current and potential investors. Current investors are also internal users, while potential external ones want to know about the company to participate in it and obtain a return.

2. Financial analysts. They are part of the agents of the financial world that channel and direct investments. They monitor the evolution of companies, analyze the results and advise their investor clients.

3. Lenders.

4. Employees.

5. Suppliers.

6. Customers.

7. Public administration (Government). It is fed by direct and indirect taxes.

8. Competitors. They try to improve by analyzing and comparing themselves with the closest competition.

9. Media. Economic information is relevant in the media and influences public opinion.

10. General public. They access this information in more specific cases of interest.