Finance is core to any business organization. Its involvement starts with arrangement of Funds to start the business and continues till its closure. Any Financial MIS framework should originate from Key Functions of Finance which are as follows :
Strategic Finance
- Investment Evaluation – Utilization of Capital in right projects.
- Finance Arrangement for Long Term Assets & Working Capital Finance.
- Risk Management – Managing Risk in business and environment.
- Stakeholder Communication – Shareholders, Bankers, Investors.
- Financial Value Creation – Maximization of Business Valuation
Accounting & Statutory
- Accounting of Transactions of business.
- Statutory & Taxation compliances
Financial Efficiency
- Profit Maximization from operations. – Revenue Maximization and Cost Minimization.
- Financial Hygiene – Fraud & Mistakes Prevention.
- Treasury Management
Keeping above functions in mind, following Financial MIS Reports can be generated :
Investment Efficiency MIS
Every business starts with introduction of financial capital. This capital could also have been invested in alternate investment opportunities. Apart from own Capital every business also arranges for loans from different sources. This Loan has to be repaid by promoters irrespective of profitability of business. Hence it is desirable that MIS should be generated to check returns and health of financial capital deployed in business. Following MIS may be generated to this effect.
- Finance Macro Environment Report
- Financial Value Creation Report
- Investment Efficiency Report – Liabilities Based
- Investment Efficiency Report – Assets Based
- Investment Efficiency Report – Future Incomes
- Investment Entry Report
- Investment Exit Report
- Credit Rating Report
Capital Expenditure MIS
Capital Expenditure Control is a vital element of Financial Management functions. Capital Expenditure generally involves large sum of expenditure. Further capital expenditure has a long term impact on profitability of company. Hence its finds an important place in Financial Management MIS. Some of key capital expenditure and assets related reports are as follows:
- Capital Expenditure Analysis
- Assets Disposed Off Report
- List of Assets Not Authorized for Acquisition /Disposal
- Fixed Assets Verification Analysis
- List of Assets Pending Disposal
- Reconciliation between Fixed Assets Register and Nominal Ledger
Project Progress MIS
Project MIS is a combination of Technical and Financial aspects of management. Every project has multiple components of cost and funding. It is essential that all these components progress as per schedule. This shall ensure that project is completed in time which in turn shall save Time & Cost Over runs. From Finance Angle two types of reports should be generated:
- Project Progress Report: Expenditure Incurred
- Project Progress Report: Means of Finance
Risk Management MIS
- Risk Management MIS
- Risk Coverage MIS
- Insurance Adequacy Analysis: Market Value:
- Premium Paid Analysis
- Pending Claims Analysis
- Exchange Fluctuation MIS
Regulatory MIS
Management of regulatory matters covered under different acts such as Income Tax, GST, Company Law, SEBI, RBI etc. are handled by Finance department in most organizations. A proper M.I.S shall help the Finance Manager to keep tab on all important aspects of this area of his responsibility. He should develop checks & systems to come to know about any deficiency in time and take necessary action. Broadly M.I.S for Taxation Compliances has to be patterned around following reports:
- Statutory Laws Compliance Report
- Statutory Laws Deficiency Report
- Statutory Returns Compliance Report
- Statutory Penalties Report
- Forms Not Received
Financial Records MIS
- Financial Records MIS
- Accounts Master MIS
- Reconciliation MIS
- Debit Balance Confirmation MIS
Financial Analysis & Cost Management
- Balance Sheet Analysis:
- Profitability Analysis: Total Cost approach:
- Profitability Analysis: Marginal Cost Approach:
- Cash Flow Analysis:
- Cost Minimization MIS:
Working Capital MIS
- Working Capital Analysis
- Debtors Analysis
- Legal Debtors Analysis
- Creditors Analysis
- Vendor Advances MIS
Funds Management MIS
Deposit Float Report:
Payment Float Analysis
Bank Movement Plan:
Idle Funds Analysis:
Employee Accounts Analysis
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