Accounting

The management information system has been playing a major role in accounts. As for
accounting, MIS is the source for information on the company’s financial health and current
financial situation.
The following were the use of Management Information system in Accounts
 The MIS helps to track the company’s financial growth, thereby analyzing and
reporting the business income
 Analyzing data includes data sources like personal knowledge, employees,
documents, management business models, and executives. This will help the
company in identifying and solving the problems to make decisions.
 The data gathered from different outcomes will be presented in graphs, charts, and
tables. This will help the company to maintain communication between employees
and also between the employer and the employee.
 It allows the data for smooth flow along with the various level of the organization
with minimal effort. This will allow for more effective communication.
 MIS identifies the strength of the organization which will allow the management to
take the opportunity to exploit it more
 And also, it will take away the risk and uncertainty involved with the managerial
decision making
Component of MIS in accounts:
MIS has no standard format as it depends on what the management wants to see at that
point. The following were the common reports in Management Information System
Cost Report:
In the Cost Report, MIS will classify the Cost as 
 Direct Cost
 Indirect Cost
 Variable Cost
 Fixed Cost
Variance Reports:
In Variance Reports, MIS will show us the difference between Ideation and the actual result.
Profitability Factors and Value drivers Report:
In the Profitability Factors and Value drivers Report, MIS will tell the management what
happened with the key factors in their business-like sales quantity, sales price, cost per unit,
and profit per unit, etc.
Cloud Accounting:
Cloud accounting refers to using the accounting software and data hosted on other server
and that’s made available over an internet connection from anyplace on any device.
In terms of cloud, accountants should take it as a big opportunity to step up. Accountants
can leverage the cloud to empower insights in the new segment of business to understand
how they will change the performance of the business.
Cloud has been significantly changing the administrative process and human dependency
which gives accountants the potential of utilizing their skills and expertise to innovate the
improves service level.
The following survey has been conducted by Microsoft on deploying cloud computing and
they discovered that cost-efficiency and improved productivity as the primary benefits of
deploying cloud computing in the company

Real-Time Analysis:
Real-time updates over cloud computing to all the parties involved means that the
accountants don’t have to get mixed up in the redundant files. Cloud computing makes it
easier to work on financial data as 
 It provides a common platform to store and access all critical data in real-time which
reduces the time of accountants as they can devote more time to core tasks.
 
Scalable File Storage:
Accounting files are heavier ones and as the business grows, it demands more storage
space. So, on the cloud, firms can choose to expand the storage space on demands at a
much lower cost as there is no need to buy expensive computer equipment and the
maintenance cost. It also automatically backs up the data and stores them at isolated data
centers to keep them safe.

Seamless Document Management:

As we know that accounting has been heavily reliant on documents. So, rising dependency
on Internet-based transactions helps the electronic format of these documents to replace
the printed version. Cloud will ensure that the accounting department can collect the e-
format documents with ease and have them whenever it is needed.
Finance:
Management Systems in Finance has been adopted by both Governments as well as the
corporation. It provides an information system with the capacity to maintain large data
bases. This will help the company to store organize and access the financial information
easily. It is primarily used for accounting operations and the generation of financial reports.
It is also used to support budget planning and decision-making processes. Let us see that
one by one
General Ledger:
 MIS will automatically update all the transactions in General Ledger which is the core
component of all financial information systems.
 The financial transaction is simultaneously posted on various accounts that
compromise the Chart of Accounts
So, these things will help the company to maintain an accurate and permanent record of all
historical transactions which will reduce the error.
Cash Management:
The most important use of MIS in Finance is Cash Flow Management. Cash Flow
Management refers to monitoring, forecasting, and controlling of Cash for financing needs.
 Using MIS in Finance helps the companies to track the cash flow through accounts
receivables and accounts payables accurately
 Accurate records will help in COGS monitoring which can help in pinpoint the areas
that eat the cash flow
Budget Planning:
 MIS in finance helps the company to evaluate the “What if” scenarios.
 By modifying the Financial ratio, management can foresee the various effects based
on the different scenarios on financial statements.
 MIS serves as a decision-making tool that will help in choosing appropriate financial
goals.
Infrastructure as a Service (IAAS):
 Cloud will provide the IAAS which will reduce the deploying testing costs and running
applications on in-house resources.
 It will also offer super high-level computing and processing capabilities like running
the credit risk simulations.
 Cloud allows the firms to make financial decisions faster, and also streamlining the
operations which can have a positive influence on profitability.