There are basically three processes involved in Financial Information Systems. These are Information Events, Decision or Management Events, and Operating Events. In order to obtain a competitive advantage, proper management is required to improve a business process. Strategically, there are business activities that can help boost the value of products and services offered by the company.
The business process is a basic element in the formation of live organization. For instance, in order to fly a spaceship, there must be a navigator. Likewise, reporting is also an important factor in order to analyze, review, and control daily business processes and operations. The assessment of financial data can be performed using trend evaluation, financial planning modeling, and ratio analysis. Financial forecasting and planning can be facilitated through the help of Decision Support System.
The Financial Information Systems are accounting systems that provide the financially oriented views of the business processes and activities. It was Luca Pacioli who first set the principles of developing accounting systems. Nowadays, the traditionally used accounting system designs are view driven wherein the preferred views in business data summarize how the business data should be stored, used, and captured.
Financial Information Systems are designed to offer specific information that would support particular functions including sales, logistics, HR, and many more. The primary goal of Financial Information Systems is to convene the financial obligations of the company as the due comes, with the use of minimal financial resources. The outputs of these systems are the capital and operating budgets, accounting reports, cash flow forecasts, and working capital reports.