External users of accounting information are those who have limited authority, ability, and resources to obtain necessary information and have to rely on financial statements like the Balance Sheet and Profit and Loss account. These users include present and potential investors (shareholders) who need information on risks and return on investment, creditors (banks, financial institutions, debenture-holders, and lenders) who require information on creditworthiness, and suppliers and creditors who want to know whether amounts owed will be repaid.

Other important external users are tax authorities, government and other regulators (interested in resource allocation and regulatory compliance), regulatory agencies like Department of Company Affairs, Registrar of Companies, SEBI, labour unions and employee groups (concerned with stability and wealth distribution), trade associations, stock exchanges, customers (interested in continued existence and supply), social responsibility groups like environmental groups, and competitors (for strategic benchmarking purposes).