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.
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.
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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