Financial Management Information System

Topics: Finance, Management, Economics Pages: 3 (386 words) Published: April 15, 2015
Financial Management Information System

Finance – an important functional area for most organization. Finance Area – monitors cash, flow and profitability.
Sophisticated Financial System – capable for providing financial managers and executives with timely information, which is critical to success in today’s accelerated global economy. Financial Management Information System – provides financial information to all financial managers with an organization, including the chief financial officer (CFO). Financial MIS Specifically:

1. Analyzes historical and current financial activity.
2. Project future financial needs.
3. Monitors and controls the used of funds over time.
InputsSubsystemsOutput

Figure 9.4 An Overview of a Financial MIS

Inputs to the Financial Management Information System
1. Strategic plan or corporate policies – contains major financial ojectives. 2. The transaction processing system – important financial information is collected from almost every transaction processing application. 3. External Sources – information from and about the competition can be critical to financial decision making. MIS Reports – provides unit of measure or as a basic comparison. Government Agencies – provide important economic and financial information.

Financial MIS Subsystems and Output
Financial MIS – includes both internal and external system that assits in acquiring, using & controlling cash, funds, and other financial resources.

Subsystems
1. Financial Forecasting – the process of making predictions about future growth of products or the organizations as a whole. 2. Profit / loss and cost System – which organize revenue and cost data of the company. a. Department within the organization of Financial MIS.

A. Profit center – an organizations which means they track total expenses and net profits. B. Revenue centers – primarily track sales or revenue’s, such as a marketing or sales...
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