Why Suppliers Need Accounting Information?

Just like lenders, suppliers need accounting information to assess the credit-worthiness of its customers before offering goods and services on credit. ... Suppliers need accounting information of its key customers to assess whether their business is in good health which is necessary for sustainable business growth.

Why do suppliers need financial information?

Suppliers. They need Financial Statements to assess the credit worthiness of a business and ascertain whether to supply goods on credit. Suppliers need to know if they will be repaid. Terms of credit are set according to the assessment of their customers' financial health.

Why do they need accounting information?

They need accounting information to assess the financial performance and position and to have a reasonable assurance that the business to whom they are going to lend money would be able to return the principal amount as well as pay interest there on.