The primary purpose of financial accounting is to systematically record, summarize, and report a company's financial transactions to provide accurate and relevant financial information to external users such as investors, creditors, regulators, and other stakeholders. This enables these users to assess the company's financial performance, position, and cash flows, facilitating informed decision-making regarding investment, lending, and regulatory compliance

. Key objectives supporting this primary purpose include:

• Recording all financial transactions accurately and systematically to maintain up-to-date financial data

• Preparing standardized financial statements (income statement, balance sheet, cash flow statement) that reflect the company’s financial health over a specific period

• Ensuring transparency and accountability by providing reliable financial information that builds trust among stakeholders and supports compliance with legal and regulatory requirements

• Supporting management and external parties in analyzing profitability, financial stability, and operational efficiency to guide strategic decisions and resource allocation

In summary, financial accounting serves to present a clear, consistent, and truthful picture of a company’s financial activities and condition, primarily for the benefit of external users who rely on this information for economic decisions