How to Use a Business Calculator
Business calculations are mathematical concepts that form an integral part of a business’s revenue and finance process. They include profit, loss and interest calculations and salary calculations, among others. These financial calculations enable businesses to effectively manage its expenses and revenues. They are also essential in preparing invoices, sending quotations and calculating tax. A lot of these calculations require the changing of numbers between various standards, such as rupees to dollars (or from lacs to crore). This is where a business calculator comes in handy.
Start-up costs
Make a list of the costs you’ll be able to incur in the first year of your business. These could include licenses permits, equipment, supplies, a website, bookkeeping or accounting charges, and legal or professional consultation costs. You will need to do some research about your industry and examine the financial statements of similar companies to determine what these costs are. It’s generally a good idea to add 10% to your estimates in case of unexpected expenses.
Net income
Calculating your net profit is not difficult however, it is vital to evaluate your company’s profitability. To calculate it, subtract your total costs from your total revenue. The resultant number can help you determine whether you are selling your product or service at the correct price. It will also alert you to any pricing issues and inform you how long before your business is able to break even.