MIS or Management Information System
The Management Information System (MIS) is an integrated man-machine system that provides information to support the planning and control functions of managers in an organization. MIS can also be defined as the combination of human & computer based resources that results in the collection, storage, retrieval, communication & use of data for efficient management of operations and for business planning.
Role of MIS
- MIS in an organization is like heart in the body.
- The information is the blood and MIS is the heart.
- Heart supplies blood to all of the body, including brain. Similarly, MIS ensures appropriate data is collected from various sources, processed and sent further to all the needy destinations.
Classification of MIS Reports:
Profit & Loss:
Compares the Financial performance (Incomes & Expenses) for the period(s).
Balance Sheet:
Compares the Financial position (Assets & Liabilities) for the period(s).
Cost Centre (Product Wise):
Any activity where cost is incurred is called “cost center”. Sometimes the management may request a product wise break up of the revenue, purchases and inventory.
Please note that preparation of Financial Statements is a requirement of law, hence we follow the Companies Act format for the same. However, MIS is an internal report which helps the business to take right decisions, there is no particular format for the same and the management decides on the format that suits their business.
The objective of the MIS report is to understand our own business in details with the use of graphs, ratios, percentages etc. and analyze them to take important business decisions.