1. Financial Information Systems
An introduction

2. What is a Management Information
system?

3. A planned system for the
Collection Processing Storage
Dissemination evaluate
of data in the form of
information

4. Financial management systems help
us manage finances

5. The Collection of information
Maintaining accounts
manually
• Tedious and prone to
mistakes, multiple entries to
many books

6. Accounting systems make it
automatic
Ledger and other books gets
updated along with the Journal
• Ease and convenience
Information available easily

7. Each revenue or expense
transaction processed
within FIS will include a
code supplied from
each of these components
and will answer the
following questions
1. What revenue or expense activity occurred?
2. What is the source of funding? How much funding is
available for spending?
3. Which department/project incurred the activity?

8. Generating reports is easy

9. An audit can be done with ease

10. Forecasting can be done based on
previous trends

11. Management of funds
Information used to identify the source of funds and control overall spending. If
insufficient funds are available the system will not release payment

12. The processing of an invoice in an
accounts payable department

13. Invoice provided by the vendor entered into system and hence in the database

14. When goods are received an entry is made in the system and a receipt issued

15. Before payment the system matches the receipt with the invoice and a mail is se
to the accounts payable manager to authorizes release of funds

16. Personal financial management
software

20. Another example of a FIS

22. Questions?