What is the difference between internal and external users of financial statement?
Internal users include managers and other employees who use financial information to confirm past results and help make adjustments for future activities. External users are those outside of the organization who use the financial information to make decisions or to evaluate an entity’s performance. What are the users of financial statement?
Who are the users of financial statements?
The users of financial statements such as the balance sheet include people both inside and outside your company. Because so many people rely on financial statements for information, federal regulation, and generally accepted accounting principles (GAAP) have standardized the formats.
Who are the internal users?
Internal users includes management of the company, the board of directors, or company employees. This could also include private equity firms, venture capital firms, or the parent if the company is a subsidiary.