Financial Management Information (FMIS)
Financial Management Information System accumulate and analize fiancial data in order to make good financial management decision in running the business.
The basic objective of Financial Information is to meet the firm financial obligations as they come due, using the minimal amount of financial resouces, consistent with established margin of safety. Outputs generated by the system include accounting reports, operating and capitabl budgets, working capital reports, cash flow, forecast and various What-if Analysis reports. The evaluation financial planning modeling. Financial planning and forecasting are facilitated if used in conjunction with a decision support system (DSS).
What is Financial Management Information System
- A system that tracks financial events and summarizes information
- Supports adquate management reporting, policy decisions, fiduciary responsibilities and preparation of auditable financial statements.
- Should be designed with good relationship between software, hardware, personnel, procedures, control and data generally, financial management information system refers to automating financial operations.
The Ideal FMIS System
An ideal or well-designed system should
- Collect accurate, timely, complete, reliable, consistent information
- Provide adequate management reporting
- Support government-wide and agency policy decisions
- Support budget preparation and execution
- Facilitate financial statement preparation
- Provide information statement preparation
- Provide information for central agency budgeting analysis and government-wide reporting
- Provide complete audit trail to facilitate audits.
- General Ledget
- Budgetary Accounting
- Accounts Payable
The Noncore or other modules are
- Payroll System
- Budget development
- Project Ledget
- Assets module
Advantage of Financial Management Information System
- Integrated financial information
- Flexiblity of reporting and additional control over expenditure
- Less administration required with the business tighter views of budgets versus actuals.