Financial Information System (FIS)

Financial Information System (FIS) accumulates and analyzes monetary information used for foremost financial planning and forecasting choices and outcomes. An FIS is used along with a decision support system, and it helps a corporation reap its fiscal targets due to the fact they use a minimal quantity of assets relative to a predetermined margin of safety. An FIS may also be notion of as a financial planner for digital commerce that may also produce giant quantities of market and financial data immediately obtained from financial databases worldwide.

Financial data analysis can be conducted through various means like trend analysis, ratio analysis and financial planning modeling. Thus data can be generated in form which will be more relevant to the business i.e. cash flow forecast, accounting reports, operational and capital budget etc.

Financial Information Systems support financial managers in decisions concerning the financing of the business and the allocation and control of financial resources.  Key areas for financial information systems include:Cash and Securities Management: 

Information systems collect information on all cash receipts and disbursements within a company on a real time or periodic basis.  Further, many businesses invest their excess cash in short-term marketable securities and these portfolios can be managed by systems software.

Capital Budgeting:  

The FIS assists the capital budgeting process by helping to evaluate the profitability and financial impact of proposed capital expenditures. 

Financial Forecasting:

The financial information system package of the organization will have a variety of statistical forecasting packages to provide analytical techniques that result in economic or financial forecasts of national and local economic conditions, wage levels, price levels, and interest rates.

Financial Planning:

Financial planning systems use financial planning models to evaluate the present and projected performance of a business or of one of its divisions or subsidiaries.  They also help determine the financing needs of a business and analyze alternative methods of financing.

Financial markets traders and salespeople and other businesses have the greatest demand for Financial Information System because they work in very fast environments and their on-demand computing systems must keep up with real-time activities in order to allow these professionals to operate in real time.