Financial Information System

Financial Information
System
• A subsystem of computer
based information
system that provides
information to persons and
groups both inside and
outside the firm concerning
the firm’s financial matters.
• Information is provided in
form of periodic reports,
special reports, results of
mathematical simulations,
electronic communications,(McLeod)
 Development of
Business Information System
Fro m lo ca l to
n a tio n a l
FN IS to g lo b a lb u sin e ss
M FIS
M K IS
H R IS
A IS Fro m p rice
E IS to n o n -p rice
ES co m p e titio n
D SS Fro m b u ye r
M IS needs
to b u ye r w a n ts
Activities Value Chain Model

Firm Infrastructure FINANCE

Support

Human Resource Management

Technical Development
Profit
Procurement Margin
Activities
Primary

Inbound Outbound Marketing Customer

Logistics Operations Logistics & Sales Services
 System Concept
System Boundary

Organization
External as a System
Internal Consists of
Each subsystem functional
can be viewed as Subsystems
another system;
AC
and consists of its HR Interact and
own subsystems inter-linkage
among the
subsystems
to achieve
FN org. goal
A
MFG
B

Direct
MK

Achieve
C D
Each subsystem
has its dept. goal
 implementation of
information systems
 Cycle for Public Fin Mgt
Policy Formulation Budget
and Review Preparation Budget Execution
1 2

Audit and Budget

9 Evaluation Authorizations 3

Implementation
Budget Review Commitment of
8 & Accounting Funds 4
Common database
Purchasing

Debt and Aid Payments and

7 Mgt Receipts Mgt 5
Asset /
6 Inventory Mgt
Cash Mgt Payroll/
HR Mgt

8
 Classification of Information
Systems
EIS Executive Information System

DSS Decision Support System

MIS Management Information System

TPS Transaction Processing System

AIS FNIS MKIS HRIS MFIS

 A Model of
Financial Information System

Internal
Internal
Records
Records Financial
Financial
System
System Decision
Decision
Support
Support
System
System
Internal
Internal
Audit D a ta •Forecasting
Audit •Funds
System
System b a se Management
•Financial
Control
Financial
Financial etc.
Intelligence
Intelligence
System
System

Adapted from McLeod

• 1. Internal Records System
• 2. Internal Audit System
• 3. Financial Intelligence System
• 4. Financial Decision Support System
 Funds Management Subsystem
 Forecasting Subsystem
 Financial Control Subsystem