3.

Allows quick accessibility to important information and documents

Sometimes we tend to forget things and because this happens, bad people might want
to take advantage of this. For example, let’s say a customer approaches you to buy
some goods on credit and promises to pay the debt in 2 weeks. Before the supposed
payback date, he or she has come several times to buy goods and actually pay yet on
payback day, this customer claims his previous debt has been settled. The easiest way
to exonerate oneself from a situation like this is to refer back to your financial records
and verify the customer’s statement against the data available to avoid embarrassment
for the business and oneself.
4. Allows easy access to loans and grants
Businesses might need to take loans or even seek grants not just to expand their
business but to sometimes save the business from liquidation. To access these loans or
grants, you need to mostly provide financial records to show your business growth,
strengths, forecast, etc. before the banks or institutions will approve your loan request. If
your business doesn’t keep these records, it will put the business in an unfavorable
situation.
5. Helps in filing of proper documentation for tax and levies
Businesses are required to pay tax as taxes are an essential part of an economy as it
supports government expenditure. To know the appropriate amount your business has
to pay in tax, you must have proper financial records to show your income, spend, etc.
these documents will help in allowing the business not be overcharged or undercharged
by the appropriate tax authority.
In summary, record keeping is important in businesses, be it records operational and
administrative activities or financial activities. They serve as the memory of businesses
and cannot be discounted by any small, medium or large enterprise looking to grow into
a credible institution
Importance of information management in an organization
January 19, 2021 – by InterestingFacts.org – Leave a Comment
Information is critical in running a business, and managing it is crucial to run it
successfully. We live in an era of excess information, and with one touch, we can land
in the sea of knowledge. Besides, technology has enabled us to save a vast amount of
information and access them at our ease from anywhere. Since now, organizations can
save a humongous amount of information. Managing them can be a hassle. Excess of
anything can be dangerous, and the same is the case with data. Effective management
of data is indispensable to operate the company successfully.
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The latest technology advancement has made it possible for organizations to find new
and efficient ways to collect data and then use them to carry out their mundane official
tasks. Besides, information helps organizations make informed decisions, devise
strategies, design budgets, and other aspects.
Information management
As the name implies, information management is the collection and management of
information. An organization receives different information types, including personal
data of clients and employees, inventory cost, and several other information pieces. In
today’s technologically-progressed era, information has become an extended-term,
including electronic, physical, and manual data. Since digital data is easy to access,
analyze, share, and evaluate, organizations rely mostly on digital tools to receive,
distribute, and manage information. Businesses’ goal is never to make someone a one-
time customer. Retaining customers is crucial for sustaining a company in the market.
The information helps in giving customers enriching and seamless experiences, which
is the key to keep them. On the other hand, turning potential customers into actual ones
is another task, and effective management of information helps firms bring new
customers on board.
Importance of information management
Not every employee needs to know the exact details of all the data. Many bits are
irrelevant to many people. Information management is to handle the information so that
pertinent people get easy access to it and use it for its advantage. Skillful people who
know the field of information management and understand its importance serve the
organization better and help it succeed. A master of information management degree
holder understands the value information management can add to a company. Hiring
degree holders can bring expertise to the business as talented people know their fields’
ins and outs.
Modern technology has enabled organizations to install customized software and
manage the information accordingly. The information management system ensures that
staff members get information timely. An organization has several departments, and
seamless coordination is crucial for any company to succeed. The departments and
their members’ coordination and communication rely on efficient information
management.
Here is an insight into the significance of information management:
Audits
An audit is a significant aspect of a company, which gives an idea about a company’s
finances. Audit officers need access to expense and profit data. They may need to
perform retrieval and e-discovery tasks to carry out the audit. Contrary to popular ideas,
not all finance people know the auditing process. Companies need to give auditors the
necessary information to present their reports on time. Information management is
crucial for them as they are well-versed in their job and possess justifying their
statements.
Planning
Planning is helpful in every department of an organization. Businesses need to devise a
proper plan for upcoming seasons, and they need data for that. Information gives a
roadmap, which offers an idea and direction for developing strategies. An MIS,
management information software, provides an insight into customers’ lifestyles and
their preferences. Besides, it gives statistics of the previous season’s performance.
Business owners find themselves better positioned to strategize for the future.
Businesses can use MIS to plan short-term and have a long-term objective and plan
their techniques accordingly. Information management helps direct how companies from
practices and implement them.
Budgeting
Budgeting assists companies in carrying out their regular tasks effectively. Many
companies that open with a bang cannot sustain themselves because they did not have
a proper budget and end up overspending. When firms have an appropriate account for
every activity and department, they operate efficiently. Budgeting also gives an insight
into the excess expenses a company is making and reduces cost. Moreover, employees
know their limits and plan as per budget, accordingly. Information is crucial for devising
budgets and assigning proper funds for different tasks.
Disaster recovery
Success and failure are part and parcel of a business. Business owners launch their
companies in the hope of generating substantial revenue and making a name for
themselves. Still, things do not always go as per plan, and some companies fail to profit.
A disaster recovery plan helps companies sustain themselves in difficult times.
Information management plays a vital role in strategizing a disaster recovery plan
Behavioral change
Someone wisely said that the change is the only constant thing, and if the customers
are behaving in a certain way today, they will not behave the same all year-round. The
information helps predict the change in their attitude and prevents businesses from
taken aback by different responses. The insight into behavioral change in customers
helps companies deliver as per clients’ expectations, which is crucial to retain them. On
the other hand, an effective management system is essential to maintain good
relationships and communication among employees. It supports the seamless flow of
information.
Conclusion
In today’s era. Managing finance and keeping an eye on competitors are not the only
aspects of running a business. Companies require to look after various other elements.
Information management at the heart of the business, and companies that understand
the significance put in the earnest effort and pay much attention to the information
management system. Organizational data and statistics give an overview of the
company and assist in making instant yet informed decisions. It helps in preventing loss
and surprises and ensures the smooth flow of a company. The other side of acquiring
information is that it comes with responsibility. Companies need to plan effectively and
have a proper MIS system to generate more sales.
Beyond the need to stay competitive, there are some key advantages of effective use of
management information systems:
 Management can get an overview of their entire operation.
 Managers have the ability to get feedback about their performance.
 Organizations can maximize benefits from their investments by seeing what is
working and what isn’t.
 Managers can compare results to planned performance by identifying strengths
and weakness in both the plan and the performance.
Information management is the collection and management of the information from one
or more sources and distribution of that information to one or more audiences.
Management means the organization, controlling processes sing, evaluating and
reporting information activities in order to meet client objectives and to enable corporate
functions in the delivery of information.
Information: here refers to all types of information of value, whether having their origin
inside and outside the organization, including data resources, such as production data,
records and files related.
Introduction
The project embarks on the justification of the importance of information management.
Information management is all school financial records/data comprised or on a paper
need to be managed well for different functions.
Information management is a magic food increased business and management
complexities
How:
 Technological revolution
 Research and development
 Exploitation of information
 Management science technologies
 Decision making
 Onset of computers
Functional uses of MIS
Is to enhance quality of our operations e.g. in a school environment
Quality of services – provide information where we are lacking.
We achieve: efficiency
Transparency
Speed decision-making
Strategic use of MIS
1. Precise development of strategies, planning, forecasting (budget) and monitoring
2. Problem solving
3. Decision making
4. Separate work from location