Business Calculations

Accurate calculations are crucial to the financial health of any company. No matter if you’re planning start-up costs, figuring out your break-even point, or analyzing the value of a possible acquisition, you must make use of the correct tools. Business calculations can be straightforward or complex but the outcomes are vital.

Start-up costs are the cost needed to begin the business of a new company, which includes office furniture, office supplies and equipment. These costs may include research costs, such as market and industry analyses. A good estimate of your startup costs can be made by looking over the financial statements of comparable businesses in your field or talking with your bookkeeper or accountant for suggestions on particular cost categories. It is also recommended to add an insurance policy of 10% to your initial costs to account for the unforeseeable.

Calculating your total costs will allow you to determine the profits, if any you can expect to earn after you’ve sold all your products or services. You can determine your cost of goods sold (COGS) using the formula. This figure is important for determining the cost of goods sold and profit margins.

The best business calculators have a variety of functions and are simple to use. Some calculators for business come with built-in functions for amortization or interest rate conversions. Others may include visual graphs or connect to a computer for safe storage of calculations. There are many business calculators that have more advanced features. For example, an NPV calculator that makes use of the discount-cash-flow method to calculate the future business calculation methods cash flows’ net present value.