How might you use financial information systems in a business?

A good financial information system will provide you with the information that you need to run your business. For example, you manufacture widgets and there are 3 pieces of raw material that you use to make the widgets and then you sell and ship the widgets to your customer. A good financial system will be able to track all of those costs PLUS overheads and provide you with details about each piece of the process.





You would use this information to improve your profitability either through reducing costs or increasing sales/revenues.





I've got an accounting degree with an MBA with a concentration in Information Systems. You gave a very very general question. I gave you a pretty generic answer, but your question needs more investigation to fully answer your specific needs.





One last thought -- it's a good idea to keep MORE detail in a financial information system than you keep in the general ledger.|||Financial information systems are also good tools for risk management. They can help you identify vulnerabilities in your cash management, receivables, etc. Remember: manage your risk or it will manage you!