A Management Information System (MIS) is a periodic statement prepared by the accounting department. It involves an organized and systematic approach to the study of data required by an organisation's management for making strategic decisions and facilitating efficient control at all levels of the organisation.
The aim of MIS is to provide accurate and timely information in suitable and required formats to the management for better management and control of the business.
This process involves the collection and analysis of various data in the form of statements and surveys. These statements are known as managerial information statements. They are prepared through the mutual coordination of finance, accounts, and all other departments.
Normally, most of the MIS statements are derived from preset formats of the computer software programmes. But some reports may also be prepared manually in their fixed formats. These formats are designed by the management in consultation with all departmental heads.
These statements can be prepared either weekly, fortnightly, or monthly. It depends on the requirements of the organisation's nature and structure.
The aim of MIS is to provide accurate and timely information in suitable and required formats to the management for better management and control of the business.
This process involves the collection and analysis of various data in the form of statements and surveys. These statements are known as managerial information statements. They are prepared through the mutual coordination of finance, accounts, and all other departments.
Normally, most of the MIS statements are derived from preset formats of the computer software programmes. But some reports may also be prepared manually in their fixed formats. These formats are designed by the management in consultation with all departmental heads.
These statements can be prepared either weekly, fortnightly, or monthly. It depends on the requirements of the organisation's nature and structure.
The following are some of the examples that are required by the management:
Financial management involves the efficient handling of the company's finances through constant vigilance and regular analysis of the inflow and outflow of funds.
The main aim of a Finance Manager should be to minimise cost and maximise profit for the company.
- Production Report (product-wise)
- Labour Report (plant-wise engagement & total strength & cost of labour)
- Stock Report (item-wise)
- Sales Report (product-wise)
- Debtors Report
- Creditors Report
- Process-wise Cost Report
- Cash Flow
- Fund Flow
- Budget & Actual expenditure comparison Report
- Break-even point statement
There can be many more reports and statements as per the management's requirements to control the business efficiently.
MIS for Financial Management
Financial management involves the efficient handling of the company's finances through constant vigilance and regular analysis of the inflow and outflow of funds.
The main aim of a Finance Manager should be to minimise cost and maximise profit for the company.
This is done through collection and comparison of various data related to the production processes, including sales, stock, and funds utilisation.
- Data for the current period is compared with previous years' figures, and deviations in results are to be explained with proper reasons.
- Each item of deviation in performance needs to be located within the process and reported to management and the related departments.
- In this process, product-wise cost sheets may also need to be prepared, and deviation charts are to be prepared.
- Budget planning is also a part of MIS. Budgets are prepared by comparing past achievements and fixing a reasonable target for the current year based on those results.
- Fund management is done through analysis of Cash Flow and Fund Flow statements and through efficient Inventory Control methods.
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