Small Business Budgeting - Financial Planning

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Business budgeting is important for maximizing profits and giving the company financial direction. The first step to creating a budget is the creation of the sales forecast. The forecast is an estimate of future sales and other types of income. Although the budget is not a prediction of the future, it uses future estimated income as a means of dispersing expenditures. Budgeting financial expenditures allows the business to maximize profitability by controlling expenses.