What Does Financial Information System (FIS) Mean?
A financial information system (FIS) accumulates and analyzes financial data used for optimal financial planning and forecasting decisions and outcomes. An FIS is used in conjunction with a decision support system, and it helps a firm attain its financial objectives because they use a minimal amount of resources relative to a predetermined margin of safety. An FIS can be thought of as a financial planner for electronic commerce that can also produce large amounts of market and financial data at once obtained from financial databases worldwide.
Techopedia Explains Financial Information System (FIS)
Financial data analysis may be conducted through trend evaluations, ratio analyses and financial planning modeling. Data outputs that are produced by FIS can include
- Operating and capital budgets
- Working capital reports
- Accounting reports
- Cash flow forecasts
The predictive analytics included in these applications may also narrow down exactly what could be expected from a business interaction or transaction that has yet to take place.
The management of financial information in an e-commerce business is paramount in order to gain maximum operating results in the shortest amount of time. An FIS can also yield huge amounts of data for daily business operations. Financial markets traders and salespeople have the greatest demand for FIS because they work in very fast environments and their on-demand computing systems must keep up with real-time activities in order to allow these professionals to operate in real time. Broker investigating, investment and trade data along with fiscal asset classes can be relayed through an FIS. This also works for smaller businesses that need to obtain financial data about local markets. FIS is a form of real-time operating system that works to enhance financial information exchanges.