What is meant by finance information system? Explain its role and merits to management.

A financial information system is a collection of computer hardware and software tools that help a firm report accurate data.

Benefits of Financial Management Information Systems (FMIS) include:

1. Integrated financial information

2. Flexibility of reporting and additional control over expenditure

3. Less administration required within the business

4. Tighter views of budgets versus actuals

I believe that. 

Accounting information system is an integrated system for data financial operations of the company 

It consists of Ksmyin 

* - cycle's accounting  of operations 

* - Documentary cycle and regulatory procedures

A financial information system (FIS) accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes. An 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.

A financial information system (FIS) accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes. An 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. An 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
• 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.

FIS is the main repository of data used by UofT for financial management and reporting functions. The primary functions of FIS include:

• Recording of all financial transactions in general ledger accounts
• Generating financial reports to meet management and statutory requirements
• Controlling overall spending through budgetary controls embedded in the system
• Generating the university’s financial statements

FIS is comprised of three SAP components. This section focuses on how they work individually and how they relate to each other. The three components are:

1. Financial Accounting (FI)
   • FI is used to record all financial transactions in general ledger accounts for assets (i.e. A/R), liabilities (i.e. A/P), revenues and expenses. FI also produces the university’s financial statements.
2. Funds Management (FM)
   • FM is used to identify the source of funding (i.e. Budget dollars) as well as control overall spending. FM will prevent the posting of a transaction for which there are insufficient budget dollars.
3. Controlling (CO)
   • CO is used to track revenues and expenses based on specific reporting requirements, i.e. by department or specific activity/project.

Agreed.

Finance and accounting information systems facilitates the funding process and properly documenting and analyzing the funding and resources and revenues in specific times and follow-up business records and budgets that allow the issuance of funding and Thalileil Securities

Features:

A. Follow-up to the Organization's financial assets, and the flow of funding

B. Helps to follow the work of negotiable receipt of accounts, and analysis of bonds and commercial paper, and the budget, and planning profits

Agreed with Divyesh; FMIS is an automated system tool for repository of all transactions (used as a centralized database) to utilize for MI and regulatory reporting, cost controlling and budgeting process.