What is MIS?
- MIS Stands for Management Information System.
- Collects data from various sources and draw reports.
- Gives visual representation of business activities.
- Prepared based on the management level of users.
- Top Level – Strategic control
- Mid Level – Managerial control
- Low Level – Operational control
1. Improved Decision Making Process – A Well prepared MIS helps the management in making timely decisions with more accuracy, because the management get the trend of the business from the periodic MIS.
2. High Degree of Accountability – Employees of the organization, which prepares regular MIS will show more accountability as each of their timely completion of work is essential to prepare timely MIS.
3. Understanding Financial Situation – MIS help top managers to evaluate the overall financial situation of the company. They can easily check status reports of different projects and find out how successful they turn out to be.
4. Help you to stay competitive – MIS provide updated data. It helps the business to compare the performance of company with competitors and get a competitive advantage.
5. Improve Profitability – MIS help the business to analyse various revenue streams and match them with the expenses to analyse the profitability of unit by unit and take corrective actions.
6. Efficient Planning – Because of all the required information available in a single report, MIS help the business to plan efficiently and allocate the resources accordingly.
7. Improved Cashflow management – A good MIS contains receivable and payable analysis as well. It helps the business to analyse the receivables, prepare aging and focus on dues collection. Timely collection of due help the business to pay off the vendors and gain their confidence.
8. Prioritise Tasks – MIS help the business to prioritise the task. While analysing MIS, company can channelise its priorities to the sectors where immediate action is required and slow down the less priority tasks.
9. Efficient Inventory Management – A proper MIS also include a section for inventory of the company. This section gives detailed analysis on inventory in hand and in transit. It will help the business to manage the inventory more efficiently.
10. Visual appeal to the Numbers – A well designed MIS convert the important data to graphs and charts. Graphs and charts are easy to understand than the numbers.
MIS is a very important management tool of modern business. It helps the management to see the business through a bird’s eye view and get detailed report on all important data where each level management need to look into.
No doubt that a business which has implemented proper MIS will have better management and will lead to prosperity.
Author – CA. Abraham P J, ACA