The financial health of any business depends on accurate calculations. No matter if you’re planning starting costs, calculating your breakeven point or analysing the potential value of an acquisition, it’s important to make use of the proper tools. Calculations can be straightforward or complicated however the results are what matter.
Start-up costs are the cost required to begin a new business like fixtures, equipment and office equipment. The costs for starting a business can include research costs for market research and industry analysis. It is possible to estimate startup costs by examining the financial statements of companies in your field or asking your bookkeeper or accountant about specific cost categories. It’s also a good idea to add an extra safety cushion such as 10%, when calculating your initial costs to account for the unexpected.
Calculating your total cost will help you determine what profit, if any you can make after selling all of your products or services. Calculate your cost of goods (COGS) by using an equation. This is a crucial figure in determining prices and your profit margin.
The top business calculators offer numerous functions and are easy to use. Some business calculators come with built-in features like interest rate conversions and amortization. Some business calculators have visual graphs, while others connect to a computer to allow calculations to be saved safely. There are also business calculators with more advanced features, such as an NPV calculator, which makes use of the discounted cash-flow calculation to calculate the net value of cash flows in the Discover More future.