Who are the main users of financial statements?
The main users of financial statements include investors and shareholders, employees, customers, suppliers, lenders, government, the general public, and management. They are usually the owners of the company so they want to know how much financial benefit is the company giving them and how much the company is worth.
What are financial statements and why do we need them?
, profitability, cash flows, assets and liabilities, cash balances, fund requirements, debt to be paid, project financing, and various other days to day operational activity. Simply put, the management of the company needs financial statements to make decisions about the business. Investors are the owners of the company.
Who will most likely require financial statements?
Investors will likely require financial statements to be provided, since they are the owners of the business and want to understand the performance of their investment. Lenders.