Financial Information System

Topics: Accounting software, Enterprise resource planning, Finance Pages: 7 (1897 words) Published: May 16, 2013
Financial Information System (FIS)
Definition - What does Financial Information System (FIS) mean? A financial information system (FIS) accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes. FIS is used in conjunction with a decision support system, and it helps a firm attain its financial objectives because they use a minimal amount of resources relative to a predetermined margin of safety. FIS can be thought of as a financial planner for electronic commerce that can also produce large amounts of market and financial data at once obtained from financial databases worldwide. Financial data analysis may be conducted through trend evaluations, ratio analyses and financial planning modeling. Data outputs that are produced by FIS can include operating and capital budgets, working capital reports, accounting reports and cash flow forecasts. The predictive analytics included in these applications may also narrow down exactly what could be expected from a business interaction or transaction that has yet to take place.

The management of financial information in an e-commerce business is paramount in order to gain maximum operating results in the shortest amount of time. An FIS can also yield huge amounts of data for daily business operations. Financial markets traders and salespeople have the greatest demand for FIS because they work in very fast environments and their on-demand computing systems must keep up with real-time activities in order to allow these professionals to operate in real time. Broker investigating, investment and trade data along with fiscal asset classes can be relayed through an FIS. This also works for smaller businesses that need to obtain financial data about local markets. FIS is a form of real-time operating system that works to enhance financial information exchanges. Term for a system that accumulates and analyzes financial data in order to make good financial management decisions in running the business. The basic objective of the financial information system is to meet the firm's financial obligations as they come due, using the minimal amount of financial resources consistent with an established margin of safety. Outputs generated by the system include accounting reports, operating and capital budgets, working capital reports, cash flow forecast, and various what - if analysis reports. The evaluation of financial data may be performed through ratio analysis, trend evaluation, and financial planning modeling. Financial planning and forecasting are facilitated if used in conjunction with a DECISION SUPPORT SYSTEM (DSS).

Features of FIS

Main Modules
Systems typically have three main modules. The financial accounting module records all accounting and financial transactions and produces financial statements. Funds management identifies funding sources and overall spending consistent with budgets. Controlling tracks revenue and expenses for each project or department.

Processes and modules within IFIS:
The following services and features are available through IFIS * Accounts Payable allows online entry of invoices and maintenance of vendor data. * Budget and Staffing provides input, storage, maintenance, and reporting of budget and staffing data. * Chart of Accounts (COA) provides codes necessary for recording, organizing, and reporting financial information. * Communications defines groups and tracks notices, bulletins, and announcements * Express Order enables online reporting, placement of telephone orders to vendors, and invoice remittances. * General Accounting encompasses fund accounting, chart of accounts, system table maintenance and update, and grants and contract accounting. * Person/ Entity records and maintains basic information on individuals and entities such as vendors, third parties, and institutions. * Purchasing facilitates buying activities, such as requests for goods and services, and...
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