Customers and Suppliers

Stakeholders like customers and suppliers may use accounting information to assess an organization's financial stability and reliability as a business partner. This can influence their purchasing and supply decisions.

Needs: Customers and suppliers assess the financial stability and reliability of an organization when making purchasing and supply decisions.

How Accounting Meets Needs: Accounting data allows customers and suppliers to evaluate the organization's financial health, influencing their decisions regarding long-term partnerships and transactions.

Advantages: Customers and suppliers use accounting data as a signal of a company's financial stability. It informs their decisions to engage in long-term relationships and transactions.
Disadvantages: Accounting information may not always convey the full scope of a company's operational capabilities.