Budgeting for your small business is an essential planning tool. By being aware of how much money you have and how much you could raise in the future you can make calculated decisions on how to push your business forward. A small business budget looks at your estimated income and expenses over a period. The three main reasons why it is important to create a budget is so that you can plan for the future, manage your cash flow and secure financing from banks and lenders. Here are the steps to creating a small business budget.