Financial Management Information Systems accumulate and analyze financial data in order to make good financial management decisions in running the business. FMIS is the acronym for the term “Financial Management Information Systems”. The basic objective of the financial information system is to meet the firm’s financial obligations as they come due, using the minimal amount of financial resources consistent with an established margin of safety. Outputs generated by the system include accounting reports, operating and capital budgets, working capital reports, cash flow forecast, and various What-If Analysis reports. The evaluation of financial data may be performed through ratio analysis, trend evaluation, and financial planning modeling. Financial planning and forecasting are facilitated if used in conjunction with a Decision Support System (DSS).
What is Financial Management Information Systems?
Financial Management Information Systems (FMIS) support the automation and integration of public financial management processes including budget formulation, execution (e.g. commitment control, cash& debt management, and treasury operations), accounting and reporting. FMIS solutions can significantly improve the efficiency and equity of government operations and offer a great potential for increasing participation, transparency and accountability. Or FMIS are Information system that tracks financial events and summarizes information, supports adequate management reporting, policy decisions, fiduciary responsibilities and preparation of auditable financial statements, Should be designed with good relationships between software, hardware, personnel, procedures, controls and data. Generally financial management information system refers to automating financial operations.