Importance of Accounting & financial Information Systems

Every transaction that an organization undertakes has a financial impact, to be recorded and reported by the accounts & finance department. Hence there is a share of interest for every department in reports and information produced by this system. Financial Information Systems like other information systems should cater for information requirements at each level, for instance.

information system  Importance of Accounting & financial Information Systems

Strategic level

  1. Investment goals
  2. long range forecasts for firm’s financial performance
  3. Acquisition of financial resources and goals

Knowledge Level

  1. Analytical tools to design the right mix for investment
  2. Portfolio updates
  3. Market information analysis

Management level

  1. Control over firm’s financial resources
  2. Investment management
  3. Budget management
  4. Tax management
  5. Profitability & Performance Evaluation

Operational Level

  1. Cash flow statements through various transactions
  2. Inventory and debtors management
  3. Creditors Management

Human Resource Information Systems

It is an information system that combines many human resources functions, including benefits administration, payroll, recruiting and training, and performance analysis and review into one package. It helps in

  1. Building database of employees
  2. Keeping track for new positions or vacancies
  3. Keeping master records for each employees
  4. Performance evaluations and training assessments

IT Department

Information by itself is proving to be the most critical resource for organizations. Such is the criticality that other resources of the organization cannot be managed without it. This has lead to the evolution of information systems to efficiently manage the information resource of the organization. This system is usually employed by the Information Services department which is the major functional area of the organization.

Evolution of the IT Department

IS department function has been evolving based on the needs of user departments

  • Traditional Computing — Initially User was not directly linked with using the computing facilities and the IT workforce was involved in assisting user to achieve his computer related goals.
  • End User Computing – As the computer users become more literate, much of the work was done by users themselves and IT department took over as a support function.
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