Business calculations are mathematical concepts that form an integral part of a business’s revenue and finance process. They comprise profit, loss and interest calculations as well as salary calculations. These financial calculations enable the business to effectively manage its revenue and expenses. They are also essential in the preparation of invoices, sending quotations, and the calculation of tax. Many of these calculations require changing numbers between various standards, such as dollars to rupees (or from lacs to crore). This is where the business calculator is useful.
Start-up costs
Make a list of the costs you’ll have to pay for the first year of your business. These could include licenses permits, equipment, products, a website, bookkeeping or accounting fees, and professional or legal consultation fees. It is likely that you will need examine your industry and look at the financial statements of businesses similar to yours in order to figure out what the costs will be. It’s generally recommended to add 10% to the estimates, in case of unexpected expenses.
Net income
Calculating your net profit is simple however it is vital to assess your business‘ profitability. Subtract your total expenses from your total revenue in order to calculate net income. The resultant figure will help you determine if you are selling your product or service at the right price. It will also notify you of any pricing issues and tell you how long before your company is profitable.
