Integrated Financial Management System

A financial management information system, or integrated financial management information system (IFMS), is an information system that tracks financial events and summarizes financial information. In its basic form, an IFMS is little more than an accounting system configured to operate according to the needs and specifications of the environment in which it is installed.  It refers to the use of information and communications technology in financial operations to support management and budget decisions, fiduciary responsibilities, and the preparation of financial reports and statements. It refers more specifically to the computerization of financial management processes, from budget preparation and execution to accounting and reporting.

IFMIS Helps to organizes and makes access to financial information easy. It not only stores all the financial information relating to current and past years’ spending, but also stores the approved budgets for these years, details on inflows and outflows of funds, as well as complete inventories of financial assets (e.g., equipment, land and buildings) and liabilities (debt). The scale and scope of an IFMS can vary, from simple General Ledger System to a comprehensive system addressing Budget, Revenue, Expenditure Control, Debt, Resource Management, Human Resources, Payroll, Accounting and Financial Reporting.

Managers can use this information for a variety of purposes: to plan and formulate budgets; examine results against budgets and plans; manage cash balances; track the status of debts and receivables; monitor the use of fixed assets; monitor the performance of specific departments or units; and make revisions and adjustments as necessary, to name a few.  Reports can also be tailored to meet the reporting features from budget formulation to budget execution and review, to audit and evaluation of financial performance and results.

Salient Features

The principal element that “integrates” an IFMS is a common, single, reliable platform database (or a series of interconnected databases) to and from which all data expressed in financial terms.  In a nutshell, integration implies that the system has the following basic features:

• Standard data classification for recording financial events;
• Internal controls over data entry, transaction processing, and reporting;
• Common processes for similar transactions and a system design that eliminates unnecessary duplication of data entry. Integration oftentimes applies only to the core financial management functions that an IFMS supports, but in an ideal world it would also cover other information systems with which the core systems communicate, such as human resources, payroll.

Key Benefits

• Provide timely, accurate, and consistent data for management and budget decision-making;
• Support Company-wide as well as Branch-level policy decisions;
• Integrate budget and budget execution data, allowing greater financial control and reducing opportunities for discretion in the use of funds;
• Provide information for budget planning, analysis and reporting;
• Facilitate financial statement preparation;
• Provide a complete audit trail to facilitate audits. By recording information into an integrated system that uses common values, IFMS users can access the system and extract the specific information they require to carry out different functions and tasks. All manner of reports can be generated: balance sheets, sources and uses of funds, cost reports, returns on investment, aging of receivables and payables, cash flow projections, budget variances, and performance reports of all types.

General Ledger

Fixed Assets

Budgeting

Inventory Module

Sales Module

Purchase Module