Question

10 examples of internal and external accounting

Answer 1

There nothing as internal and external accounting as such at present times.

We only have users of accounting and these users could be internal or external to the oraganization, called as internal users and external users of accounting respectively.

Internal users of accounting include the owners,managers-Top tier,Middle tier and Bottom tier,Employees.

External users of accounting include the investors,lenders,borrowers,customers,tax authorities,regulatory authorities,government,general public.

Internal users of accounting could get their needs tailored to make decisions on the basis of data provided by accounting, while External users cannot get any tailored information, but they do get all the information required to make informed decisions on the investments they make. Here investments could be Time, Capital, Service.