What are the functions of a Budget Information System and how we can plan the operaional and financial budget of a manufacturing company?

Budgets are prepared to put the future plans for the companies, as well as in the re-feasibility Studies in 

Projects large and small bodies of the ministries on the corporate sector as well as business and public sectors. 

As for the balance sheet shall be prepared at the end of the year for the entity's financial statement for the company as a whole 

And shareholders' equity and the statement of dividend or whether there were casualties.

A budget is basicaly a planning tool that aims at setting realistic targets under the given circumstances. A budget information system is a control mechanism that puts forth necessary information related to the actuals obtained and compares the same with the budgeted activities/ targets. It encompasses two main criteria. One is the time and the other cost. Cost can further be drilled down to price and quantity. The budget information system aims at reporting and controling the budget variances.

The operational budget of a manufacturing company must begin with an analysis of the company's practical capacity of production,goods in hand and expected sales vis-a-vis the market related conditions. The operational budget may take into account the slaes budget, production budget, materials budget, labor budget, energy budget and other budgets related to input factors.

A financial budget is a translation of the operating budget into money terms and includes a projected cash budget, a projected income and expenses budget and even a projected BS. Both these budgets need to be broken into periods like months, quarters etc enabling an easy comparision with the actuals for control purposes.