Internal Stakeholders:
* Employees: Need information about the company's financial health to assess job security, potential for raises and bonuses, and the overall stability of the organization. Information on company performance might also impact employee morale and productivity.
* Management: Requires detailed financial data for planning, decision-making, performance evaluation, and strategic resource allocation. This includes budgeting, forecasting, and analyzing profitability.
* Board of Directors: Oversees the company's management and requires financial information to assess the performance of management, ensure compliance, and make strategic decisions.
External Stakeholders:
* Government Agencies (e.g., tax authorities, regulatory bodies): Need financial information to ensure compliance with tax laws, regulations, and reporting requirements. This includes things like tax returns, financial statements for licensing, etc.
* Customers: While they might not have direct access to detailed financials, a company's financial health influences their trust and confidence in the company's long-term viability, impacting their purchasing decisions. A financially troubled company may struggle to deliver on promises or even remain in operation.
* Suppliers: Want to assess the creditworthiness of a company before extending credit or providing goods and services. They need to ensure the company can pay its bills.
* Banks and other lenders: Require detailed financial information to evaluate the creditworthiness of the company before granting loans. This includes evaluating the risk of default.
* Insurance Companies: May require financial information to assess the risk profile of a company before providing insurance coverage.
* Competitors: While they won't have direct access to confidential information, publicly available financial statements can help them understand the company's market share, profitability, and overall financial strength, allowing them to benchmark their performance.
* Potential Buyers or Acquirers: Need comprehensive financial information to evaluate the value of a company during mergers, acquisitions, or divestitures. Due diligence is heavily reliant on this information.
* Analysts and Rating Agencies: Analyze financial statements to provide credit ratings, investment recommendations, and industry analysis. These ratings and analyses influence the investment decisions of others.
* Communities: Local communities are interested in the financial health of major employers in their area, as the company’s viability affects local jobs and the overall economic climate.
The specific type and level of detail of financial information needed will vary significantly depending on the stakeholder and their relationship with the company. For example, a bank considering a large loan will require far more detailed information than a customer casually checking the company's reputation.