The financial health of a company depends on accurate calculations. Whether you are planning for beginning costs, determining your breakeven point or analysing the value of a possible acquisition, it’s important to make use of the right tools. Business calculations can be simple or complex but the outcomes are critical.
Start-up costs are the expenses required to launch a new business, including fixtures, office supplies, and equipment. Research costs, which include analysis of the market and industry can also be included in the start-up costs. A good estimate of your startup costs can be made by looking over the financial statements of businesses similar to yours in your industry or speaking with your accountant or bookkeeper for suggestions on specific cost categories. It is also recommended to add an insurance policy that is at least 10% of your initial costs, to cover the unexpected.
Calculating your total cost can help you determine if you are able to make a profit selling your services or products. You can determine your cost of goods sold (COGS) by using the formula. This is a key figure in determining prices and your profit margin.
The top business calculators offer a variety of functions and are easy to use. Certain business calculators come with built-in functions, such as amortization and interest rate conversions. Certain business calculators come with visual graphs, while others connect to a computer to allow calculations to be stored safely. You can also find business calculators with more advanced options, like an NPV calculator, which employs the discounted cash-flow calculation to determine the net value of future cash flows.