Business owners and managers have to do a lot with financial statements but they are not the only users of them. There are external entities who are equally interested in knowing the financial position of the firm as they are some ways or the other connected but with the business with limited access to its financial information. Financial accounting provides financial information that is dependable, germane and useful to the below-mentioned external parties:
Shareholders/Investors
Lenders/Creditors
Potential Customers
Suppliers
Regulators/UAE Tax Authority
Financial accounting helps not only the internal users but also the external users in decision-making. So, it is highly recommended to all businesses in the UAE to have proper accounting and reporting not only to shield the company but also to satisfy the external parties to ensure continuous improvement and growth of the business.