Financial Information System is a software system that collects, analyzes, and reports financial data to support good financial management and decision making. It keeps track of accounts, generates reports, and provides information in various formats. A Financial Information System's capabilities include collecting accurate financial information, providing management reports, supporting budgets, facilitating financial statements, and aiding policy decisions with an audit trail. Its advantages are integrated financial data, flexible reporting and expenditure control, tighter budget monitoring, and reduced administration needs.