Financial Management Information Systems (FMIS) is responsible for the application/advancement and production support of automated systems, including PeopleSoft Financials, which are used within the Financial Management Division, namely the offices of the Bursar, Controller and Procurement and Support Services. Business Training in Kenya has more articles
Financial Management Information System delivers financial information to all financial managers within an institute. It assimilates financial and operational information from numerous sources. Financial MIS facilitates analysis by providing fast financial data. FMIS enables financial analysis from different aspects; time, product, customer. With Financial MIS, one can examine historical as well as current data. One is also able to monitor use of funds.
Financial Management Information Systems: Inputs
ü Strategic plan or corporate policies: Encompasses major financial objectives and often projects financial needs.
ü Transaction processing system (TPS): Significant financial information collected from almost every TPS – payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. Exterior sources. Annual reports and financial statements of competitors and general news items.
Financial Management Information System Subsystems and Outputs
- Financial subsystems: Profit/loss and cost systems, Auditing, Internal auditing, External auditing, Uses and management of funds
The features of any Financial Management Information System can be distinguished as fundamental (relevance and faithful representation) and increasing (comparability, verifiability, timeliness, and understandability), based on how they affect the worth of information. These features interact with each other and if applied properly can help in gaining useful financial reporting information.
Financial Management Information Systems: Management Information Systems
Management information systems do not have to be computerized, but with today’s large, multinational corporations, computerization is a must for a business to be successful. However, management information systems began with simple manual systems such as customer databases on index cards. As early as 1642, the French mathematician and philosopher Blasé Pascal invented the first mechanical adding machine so that figures could be added to provide information.
Management information systems are be coming more significant, and MIS personnel are more visible than in the 1960s and 1970s, when they were concealed away from the rest of the company and did tasks behind closed doors. This has transformed because the necessity for an effective management information system is of primary concern to the business organization. Managers use MIS operations for all phases of management, including planning, organizing, directing, and controlling.
Management information systems are used as a support to managers to offer a competitive advantage. The system should always support the goals of the organization.
MIS personnel should be technically competent to labor with computer hardware, software, and computer information systems. Presently, colleges and universities are unable to produce enough MIS personnel for business needs, and job opportunities are great. MIS managers, when they have ascended through their technical ranks of their organization to become managers, must remember that they are no longer doing the technical work.
Financial Management Information Systems: System Uses
The Financial Management Information Systems offers financial information to all financial managers within a business including the chief financial officer. The chief financial officer examines historical and current financial activity, plans future financial needs, and monitors and controls the use of funds over time expending the information developed by the MIS department. And thus the Financial Management Information Systems