Critical evaluation of the accounting function

The function of providing information of accountant: This is the most important function of accounting. By collecting information about financial and economic events, processing information, and using its scientific methods, accountants can provide information about the financial position, results of business activities of company units for different subjects to use the information to make appropriate decisions.  

Many people need to use the information provided by accountants: In this part, we will divide them into two categories: External users and Internal users.

 1. External users:

Business: Businesses can track their production and business activities and consider the correlation between revenue and costs, using measurement tools and financial data analysis and providing development orientations, increasing profits in the field in which the company is operating. 

 Lenders: lenders are interested in information that enables them to determine whether their loans and the related interests, will be paid when due. 

 Suppliers and other trade creditors: They are interested in information that enables them to decide to sell to the entity to determine amounts owed to them be paid when due. With customers: they are interested in information about the stability and profitability of their employees. They are also interested in the information that helps them to access the ability of the entity to provide remuneration, retirement benefits, and employment opportunities. 

Customers: they are interested in information about the stability and profitability of their employees. They are also interested in the information that helps them to access the ability of the entity to provide remuneration, retirement benefits, and employment opportunities. 

Government and their agencies: They are interested in the allocation of resources and, therefore, in the activities of entities.

2. Internal users:

Management: Management wants information to analyze their company so that they may take steps to maximize profits.

Employees: Employees, specific is accountants use the information provided by accountants to know the general situation of the company through sales or profits. They will then tailor their work to ensure compensation, benefits, and employment opportunities.

The owners: Owners use information in the same way as investors. They rely on reports to make decisions about their dividends and the company's performance. 

REFERENCE:

2021. [online] Available at: <https://luanvanviet.com/tong-quan-ve-ke-toan-quan-tri/>.

Crowe.com. 2021. Hoạt động kế toán trong doanh nghiệp | Kiểm Toán Crowe Vietnam. [online] Available at: <https://www.crowe.com/vn/vi-vn/insights/accounting-publications/faq/a1-accounting-functions-in-an-enterprise>.