IMPACT OF IT & IS IN FINANCE

NIMISH.S.DHARAN III SEM MBA IMK,PALAYAM

Financial management information systems???

Information systems & information technology help business owners and managers plan, control and make decisions about business operations. The finance department touches all aspects of a business and typically needs a large information system to gather and report information for this function.

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Financial management information systems???

The financial management information system provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes financial activity, financial needs for future projects, monitors and controls etcusing the information developed by the MIS department.
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Financial information systems

INFORMATION SYSTEMS IN FINANCE

CASH MANAGEMENT

INVESTMENT MANAGEMENT

CAPITAL BUDGETTING

FINANCIAL PLANNING

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Cash Management Investment Management Capital Budgeting Financial Planning

Cash flow management is an important use of MIS in Finance. Cash Management refers to the control, monitoring and forecasting of cash for financing needs. Use of MIS in Finance helps companies track the flow of cash through accounts receivable and accounts payable accurately. Accurate records also help in monitoring cost of goods sold.

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Cash Management Investment Management Capital Budgeting Financial Planning

Many of the companies will invest their excess money in to marketable securities. It managed by the portfolio management software packages. Online investment management services will help a financial manager make buying , selling or holding decisions. ie; help to minimize risk and maximizes investment income.
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Cash Management Investment Management Capital Budgeting Financial Planning

The capital budgeting process involves evaluating the profitability and financial impact of proposed capital expenditures. Help for Analysis of Present value analysis Expected cash flows Profitability analysis

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Cash Management Investment Management Capital Budgeting Financial Planning

Financial planning uses projected financial documents of management's expectations regarding sales, expenses and other financial transactions. MIS in finance helps organizations to evaluate the financial ratios & financial statements. MIS will use as a decision making tool, helping in choosing appropriate financial goals.
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USES OF FMIS
FMIS in Finance have been widely adopted in corporations as well as governments. FMIS with capacity to maintain large data bases enabling organizations to store, organize and access financial information easily. FMIS are primarily used for accounting operations and generation of financial reports. FMIS are also used to support budgetary, planning and decision making processes. FMIS credited with increasing financial transparency, efficiency and accountability.
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Information Technology In Finance

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Information technology
Information technology has many uses in finance. From trading financial instruments to keeping records of personal budgets to reporting the earnings of a business. Information technology allows the rapid calculation of financial statistics, as well as electronic transfers of money. Information technology offers much faster calculation speed than using a pen and paper.
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 Trading Reporting Function Convenience

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Financial trading is enhanced with information technology. A system is programmed to enter buy and sell orders when the price of a stock or bond reaches a certain level and automatically closes the order when the target price or loss is reached. Information technology provides instant information for stock traders to make decisions and allows them to enter orders that are immediately executed.
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 Financial reports are also Trading improved with information Reporting technology. Function The language known as XBRL Convenience [Extensible Business Reporting Language] is used to standardize the financial information in companies' annual reports. Traders can easily find the statistical data which companies to invest in this format.
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 Instead of using checks and Trading checking accounts, information Reporting technology can clear a transaction instantly. Function Convenience A debit or credit card purchase is rapidly compared with the user's account balance, allowing a bank to decide whether to allow a transaction. Information technology allows transactions during weekends and holidays, when there is no staff working at the bank.
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 Trading Reporting Function Convenience

Personal finance is simplified using information technology. Banks provide data on checking and savings deposits and withdrawals in standardized formats. A customer can download account transactions and store them in records on a home computer. Personal finance software includes additional features, such as charts and reports, that show home users what they are spending money on and where their funds are coming from.

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Summary
Financial data can be easily transferred with information technology. FMIS will support financial managers in decision regarding the financing of a business and the allocation of financial resources with in the business. Financial systems keep track of the firms asset and fund flows.
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References
Management Information Systems James A. OBrien Management Information Systems Kenneth C. Laudon Jane P. Laudon

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Thank YoU
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