The Importance of Accounting Information in Decision Making

In the field of accounting, economic information is of great interest, meaning that accountinginformation plays an important part in the economic book-keeping/registration system in general,but also in the economic information system especially for decision making necessary for thebusiness. Although accounting information are available for a wide range of users - stakeholders(managers, employees, suppliers, customers, financial creditors, government and its institutions,the public, the media, etc.), the investors (shareholders) are recognized as the privileged users ofaccounting information. Four principal qualitative characteristics must be met for the accounting information to beuseful in the management system: understandability, relevance, reliability and compatibility ofinformation. Any economic transaction processing involves collecting, categorizing, summing andanalyzing the data