u003cstrongu003eThe primary objective of financial accounting is to provide the necessary information about your business to external usersu003c/strongu003e like investors, clients, creditors, lawyers, auditors, and competitors. External users are a set of people that do not know much about your business, so you are expected to provide detailed information to give them an overview of your operations.u003cbr/u003eu003cbr/u003eu003cstrongu003eThe external users all have different reasons for requesting your financial statements. u003c/strongu003eInvestors need to know if your business is worth investing in. Banks need to know if you are capable of paying back any loans they lend your business. Accounting bodies need to compare your financial statements with other companies so that a standard can be set for every company in that country.