Decision about funding-ongoing operations and for capital investment supported by
Decision support systems, business intelligence applications, expert systems
II. Budgeting: annual budget allocates organization’s financial resources among
participants and activities, in the best way supporting organization’s missions and
Managing financial transactions : Peachtree by sage- sales ledger, purchase ledger, cash
book, sales order processing, invoicing, inventory control, fixed assets register, eg.
Canadian payroll software.
E-commerce financial transactions-accessing customer’s financial data, inventory levels,
manufacturing databases. Others-
1. Global stock exchanges-use of internet to buy and sell stocks and broadcast real-time
2. Managing multiple currencies-global trades involves financial transactions-multiple
currencies- conversion ratio changes. Financial/accounting system, collects data, convert,
report within seconds, in multiple languages.
3. Virtual close-organizations close their books quarterly as per regulations. Modern
organization-close anytime on short notice. Ability to close quickly-virtual close.
4. Expense management automation (EMA) - systems that automate data entry and
processing of travel and entertainment expenses, quickly and consistently collect expense
information, enforce company policies and contracts, reduce unplanned purchase or travel
expenses, and reimburse employee expenses quickly.
Investment Management: problem:
1. Thousands of investment alternatives and dispersed.
2. Subject to complex regulations and tax laws
3. Manager need to evaluate financial and economic reports provided by diverse
To monitor, interpret, analyze huge online financial data- two major IT tools-
1. Internet search engines
2. Business intelligence and decision support software
Control and Auditing: survival depends on-ability to forecast and secure sufficient cash
Need for effective control, several forms of control:
1. Budgetary control: annual budget divided into monthly allocations. Managers
monitor departmental expenditures with planned budget and operational progress