The modern system of accounting is based on what is known as the double entry principle.

Accounting includes budgeting, strategic planning, cost analysis, auditing, and income-tax preparation, preparing managerial reports for decision making etc.

Two types of users

• Internal users
• External users

Internal users

• Owner

The owner provides funds or capital for the organization.

• Management

The management of of the business is greatly interested in knowing that position of the firm.

• Employee

The more important point is that the workers expect regular income and profit earned by the firm.

External users

Outside organization of the accounting

* Creditors

Creditors are the persons who supply goods or bankers or lenders of money.

*.investors

Investors’ means who want to invest their money in a firm to investing their amount.

* Government

The state and central governments are interested in the financial statements to know the earning for the purpose of taxation.

* Consumer

There groups are interest in getting the goods at reduced price. Therefore proper accounting central, which intern will return the cost of production?