Financial Management Information System (MIS)

  • By Ashwin Dedhia

Financial MIS Provides financial information to all financial managers within an organization. It integrates financial & operational information from multiple sources. Financial MIS eases analysis by providing fast financial data. It enables financial analysis from different aspects; time, product, customer. With Financial MIS, one can analyze historical and current data. Also one can monitor use of funds. Few examples or functions of Financial MIS are Costing, P&L reporting, Auditing, Funds management, etc.

Overview of a Financial MIS

Inputs to the Financial Information System

  • Strategic plan or corporate policies
    • Contains major financial objectives and often projects financial needs.
  • Transaction processing system (TPS)
    • Important financial information collected from almost every TPS – payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger.
    • External sources
    • Annual reports and financial statements of competitors and general news items.

Financial MIS Subsystems and Outputs

  • Financial subsystems
    • Profit/loss and cost systems
    • Auditing
    • Internal auditing
    • External auditing
    • Uses and management of funds

Posted on April 24th, 2008 by Ashwin Dedhia
Filed under: Business Intelligence

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7 Responses to “Financial Management Information System (MIS)”

  1. MANU, on July 16th, 2009 at 1:43 pm Said:

    This is really very good. Please explain in detail if possible.

  2. Iana, on August 27th, 2009 at 6:45 pm Said:

    What are the characteristics of financial MIS?

  3. Dhiren Gala, on August 28th, 2009 at 12:03 pm Said:

    @ Iana, the characteristics of any Financial MIS can be distinguished as fundamental (relevance and faithful representation) and enhancing (comparability, verifiability, timeliness, and understandability), based on how they affect the usefulness of information. These characteristics interact with each other and if applied properly can help in obtaining useful financial reporting information.

  4. iana, on August 31st, 2009 at 8:03 pm Said:

    What is the system modules that related with Financial MIS?
    What is the advantages and disadvantages of Financial MIS?

  5. ANM Zakir Al Mamun, on November 12th, 2009 at 10:53 pm Said:

    Very helpful site.

    Thank you for Financial MIS information sharing. But we need more details.

    Zakir
    Business Analyst

  6. Sameer Zaidi, on February 3rd, 2010 at 6:45 pm Said:

    Very helpful information on Financial MIS.

    Thanks and regards,
    Sameer Zaidi

  7. Answaf Ansu, on February 19th, 2010 at 1:26 am Said:

    Financial Management Information System (MIS) on this Business Intelligence (BI) Blog is very helpfull article to all management students. Thank you.

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