This information is important to external investors, such as shareholders or banks, as it allows them to compare and choose which businesses they should invest in. It is vital to other organisations that they trade with, such as suppliers, as it allows these other businesses to make good decisions, based on market conditions, about whether they should supply their services or not and if credit should be extended. It is also an absolute necessity to those within the business itself to keep good financial control by driving the best decisions – for example, what a sensible level of remuneration for staff should be or whether the company can invest in new equipment without seriously reducing the return that it can make to investors.
Typical areas that financial accountants may work in include auditing, treasury management and cash flow, or the reporting on new or likely acquisitions.