The management information system (MIS) is a group of internal controls that a business may utilize that cover applications concerning employees, associates, clients, documents, procedures and technologies. Management accountants solve business problems like determining the cost of services or products and deciding upon a company strategy. Management information systems, unlike basic information systems, are usually used to analyze other information systems that may be applied within an organization for its operational activities. In short, an MIS provides the method with which to effectively manage an organization.

MIS Enhances Company Goals

The MIS uses every day financial accounting systems to ensure basic control over the fiscal record-keeping of businesses. Also, the MIS is reviewed and utilized by many levels of management within a business, company or organization. Therefore, it should support the institution's long-term strategic goals and objectives.

General Goals

The MIS should have the following objectives: • Support strategic goals and direction. • Enhancement of employee communication. • Offer an objective system for recording information. • Reduce labor related expenses. • Provide delivery of complex materials.

Financial Systems

The financial accounting system is just one part of an institutional MIS solution. Important for obvious reasons, the financial accounting systems are generally more narrowly focused on the balancing of a firm's books against the general ledger and other financial subsystems. Things such as reconciling, accrual adjustments and correcting various entries as needed may not always be immediately entered into the MIS systems. Because of this, the MIS and accounting system used for managing totals should be similar, or they may not balance correctly.

Presentation Formats

The MIS should be designed to ensure that appropriate presentation formats and time frames are met, as required by operations and management. Since MIS can be developed and maintained by either a manual or automated system, as well as a combination, it should be sufficient for any institution's specific business goals at all times. Delivery of products and services are also supported by the MIS and should be accessible by all appropriate levels of the company.

Risk Management

MIS is also a critical element of a business' risk management strategy. MIS should support management's ability to handle reviews and to realize, monitor, limit, measure and manage risks of all kinds. Risk management elements can include policies or practices, staff and management, operational processes and various feedback devices as required.

Technology

The MIS utilizes advanced technology in both planning and decision making within an organization. MIS can often originate from multiple equipment platforms such as computer mainframes, microcomputers and minicomputers. Therefore, its control features need to ensure that smaller computer systems engage processing controls which are well defined for the most effective framework possible.

Source:

MIS Network