Explain the nature and scope of the financialinformation

Explain the nature and scope of the financialinformation management function

Describe the responsibilities of financialinformation management in an organization • collecting, maintaining, and reporting data about financial transactions and assisting in the preparation of financial statements, • Supporting budgeting activities, storing and protecting customer financial information

Discuss data and information that an effective financialinformation management system should maintain • Data about organizational finances • Internal operational information • external market • competitive indicators

Explain the importance of financial-information management to business success. To control the creation and growth of records Despite decades of using various non-paper storage media, the amount of paper in our offices continues to escalate. An effective records information system addresses both creation control (limits the generation of records or copies not required to operate the business) and records retention (a system for destroying useless records or retiring inactive records), thus stabilizing the growth of records in all formats

Explain the importance of financialinformation management to business success To reduce operating costs • Recordkeeping requires administrative dollars for filing equipment, space in offices, and staffing to maintain an organized filing system (or to search for lost records when there is no organized system).

Explain the importance of financialinformation management to business success To improve efficiency and productivity Time spent searching for missing or misfiled records is non-productive. A good records management program (e. g. a document system) can help any organization upgrade its recordkeeping systems so that information retrieval is enhanced, with corresponding improvements in office efficiency and productivity. A well designed and operated filing system with an effective index can facilitate retrieval and deliver information to users as quickly as they need it

Explain the importance of financial-information management to business success To preserve the corporate memory An organization's files, records and financial data contain its institutional memory, an irreplaceable asset that is often overlooked. Every business day, you create the records, which could become background data for future management decisions and planning.

Explain the importance of financialinformation management to business success To support better management decision making In today's business environment, the manager that has the relevant data first often wins, either by making the decision ahead of the competition, or by making a better, more informed decision. A good management information system can help ensure that managers and executives have the information they need when they need it.

Financial-information management problems • Inadequate information • Multiple master sources of data

Consequences of poor financial-information management • Wasted Time efficiency is one of the reasons you use records management systems. With poor records management, you usually see significant time wasted in customer interactions and record checks. While a CRM solution allows you to quickly find and explore a customer's account, pen-and-paper files are tedious to find analyze. Marketing, sales and service processes are hindered by slow research and analysis caused by poor records management. • Poor Productivity Records management ultimately aids your company in achieving better bottomline results. By reducing time wasters and costs and by improving relationships, you should see better sales and service performance. Poor records management may contribute when your profits fall short of expectations or revenue and profits decline. Additionally, employees tend to stay focused on relationships and sales and service objectives when they use a system that easily monitors performance and opportunities.

Consequences of poor financial-information management • Lost Files With a well-supported and secure records management system, lost customer files should not happen. However, failure to put in place an effective system can lead to trouble in finding files that provide information on customer accounts, including purchases, payments and other key data to the relationship. This affects your ability to provide the best service and sales experience to top clients. When your people routinely lose customer data files or cannot easily retrieve them, you begin to experience lost customers or clients, which contributes to poor results. • Poor Organization and Clutter Without a proper records management system, you begin to see excessive clutter and a disorganized environment. In lieu of technology-driven records management, you would have to keep client or customer data in file cabinets or another organizational system. This can take over the space in an office and overwhelm your people. Additionally, an inefficient records management system makes it very difficult for employees to keep track of customer information and inventory. Stress and tension in the office are correlated symptoms.

Performance Activity • Each team needs to consider the importance of effective financialinformation management within its company. Each team should make a list of the potentially harmful 5 short-term and 5 long-term consequences that its company would face if proper attention and resources are not directed toward the financial-information management function. Explain the consequence and how it can impact business. After you have completed your lists, compare your lists with others in the class and discuss what the businesses could do to avoid those negative consequences.