Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.

External users
External users refer to groups outside the business entity who use the information to make decisions about the business entity. These users are not directly involved in the day-to-day operations of the business but rely on the information provided by the business to evaluate its performance and make informed decisions.

Types of external users
There are several types of external users who rely on the information provided by the business. Some of the key external users include:

1. Investors: Investors, such as shareholders or potential investors, use financial information to assess the financial health and performance of the business. They rely on financial statements, such as the balance sheet, income statement, and cash flow statement, to make investment decisions.

2. Creditors: Creditors, such as banks or suppliers, use financial information to evaluate the creditworthiness and financial stability of the business. They rely on financial statements and other financial information to determine whether the business is capable of repaying its debts or fulfilling its financial obligations.

3. Government agencies: Government agencies, such as tax authorities or regulatory bodies, use financial information to ensure compliance with tax laws, regulations, and reporting requirements. They rely on financial statements and other financial information to assess the business's tax liabilities and overall compliance with applicable laws and regulations.

4. Customers: Customers may use information provided by the business to assess its reputation, financial stability, and ability to deliver products or services. This information may influence their decision to engage in business transactions with the entity.

5. Competitors: Competitors may analyze the financial information of a business to gain insights into its financial performance, market position, and competitive advantage. This information can help them make strategic decisions and assess their own performance relative to the business entity.

6. General public: The general public, including journalists, researchers, and analysts, may use the information provided by the business to gain insights into its operations, financial performance, and impact on the economy or society as a whole.

Conclusion
External users are groups outside the business entity who use the information provided by the business to make decisions. These users include investors, creditors, government agencies, customers, competitors, and the general public. They rely on financial statements and other financial information to evaluate the business's performance, financial health, and overall reputation.

External users such as creditors, financial institutions, banks, investors uses the information to make decisions like should they invest in the business or not, creditors be like should they provide more loans or not and if yes then should it be short term loan or long term loan etc.