31
2011
Sources of Information
An article by admin
What are sources of Information?
Information or data may be obtained from several sources. These sources may be internal or external.
INTERNAL SOURCES
Accounting Records – are the biggest source of financial information. For that reason, accounting systems are often said to be accounting information systems as they collect data on source documents, process it on the ledger and prepare useful financial reports e.g. profit and loss statement, statement of cash flow, budget and forecasts. Cost accounting function provides more detailed and useful information to the management about internal operations.
Internal Management Information System (MIS)- company;s management information system is a specialized system with the objective of provision of the right information to the right person at the right time.
Employees – employees provides lots of information as what is happening. Such information may be passed in gossips or in formal meetings.
Other Departments – provide information about their activities, their resources, requirements, problem faced, risks encountered and management support needed.
External Sources
- News
- Internet
- Customers
- Suppliers
- Banks
- Published financial statements
- Press Conference
There are several information system to handle every type of information. It’s not only store information but also generate reports according to user requirements. Some famous information management systems are:
- EIS – Executive Information System
- DSS – Decision Support System
- ES – Expert System
- MIS – Management Information System
- OAS – Office Automation System
- TPS – Transaction Processing System
