MIS is the shorthand notation for Management Information System. It is used for processing of information with the help of a computerised database. It is a system comprised of sub-systems that include decision support system, expert system, transaction processing system etc. It is organised and programmed in a manner such that regular reports could be produced on the operations at every level of management. It stores an enormous amount of data that allows the organisations to store, organise, manipulate and access the data easily. MIS aims toward the preparation of reports along with providing feedback to the managers about their performances. It becomes easier for the top management to monitor the company through evaluation of the feedbacks. Typically, systems provide the reports according to the planned results and previous results but MIS displays the actual data. This helps to measure the progress against goals. The collection of data is carried out in two ways. It is either collected automatically from the check-out counters that are linked to the computers or are manually keyed into the systems. MIS is a beneficial system for all the processes related to accounting. As mentioned in Accounting Homework Helpers, accounting is the term used for the systematic study of the financial transactions related to any commercial activity that involves processes like summarising, analysing and interpreting financial information. The database used in MIS stores all the relevant data, which could be easily accessed for preparing the account reports.
Financial Accounting can be referred to as the core segment of any company. This is because a company’s main aim is to excel in terms of profit and it can be tracked with the help of financial accounting. It is the field of accounting that is used for the preparation of financial statements on the basis of the report prepared on economic transactions. Financial Accounting Homework Help tells us that the financial statements are further used by the company to observe the performance of the company. This could be done more quickly with the help of MIS and with a proper utilization of the system, preparation of accounting statements becomes easier. Accountants must have proper knowledge about MIS as these systems are adopted for the generation of financial reports and to carry out most of the accounting operations. They can avail many advantages if they have proper knowledge related to MIS. A few of them are mentioned below:-
- Financial reporting – MIS can be used to prepare multiple financial reports at the same time with consistency and accuracy.
- Financial modelling – A financial model is generally used to incorporate mathematics, logic, and data in databases. MIS allows the organisations to use its database to store large amounts of data.
- Cash management – Cash management is the term used to refer to the control and organisation of cash for various financial purposes. MIS can be used to track the flow of cash through all the accounts. These records can further be used to mark the areas with inventory costs, unreliable sales, high raw material costs etc.