Notes for business accounting

Providing information to suppliers, so that they give you what you need to
run your business
Sorting out what information to provide to get the wanted results

Shareholders own companies
Directors run companies

Annual reports

Types of users
 Shareholder/director
 Customer
 Competitor
 Employees
 Government - income tax, cooperation tax
 Community representatives - sponsorships
 Investment analyst
 Suppliers - make sure they get paid what they’re entitled
 Lenders - ensure they can manage the loans they might ask for
 managers
 Political parties

Divident - reward to shareholders for investing in a successful company


Financial accounting - providing information to anyone OUTSIDE the
company (banks, customers, etc.)
 Recording of accounting transactions
 Preparation of financial statements

Management accounting - providing information INSIDE the company
(board of directors, managers, employees, etc.)
 Budgeting
 Costing
 Decision making



What competitors look at:
 Strategies
 Environmental strategies
 Assets/financial position
 Locations
 Marketing
 Performance
 Board of directors salary/employee salary
 Work environment