How to Use a Business Calculator

Business calculations are mathematical concepts that are an integral part of a company’s revenue and finance process. They include profit, loss, interest calculations and salary calculations, among others. These financial calculations enable the company to efficiently manage its costs and revenues. These calculations are also essential for preparing invoices and sending quotes and for formulating tax. A lot of these calculations require changing numbers between different standards, such as dollars to rupees (or from crores to lacs). A business calculator can be extremely useful.

Costs of starting

Create a list of the costs that you will incur during the first year of your business. These could include licenses, permits, equipment or supplies, a website accounting or bookkeeping fees and professional or legal consultation fees. You will need to do some research into your industry and study the financial statements of similar businesses to determine what these costs are. In general it’s recommended to add 10% to your estimates in case there are any unexpected expenses.

Net income

Calculating your net profit is easy however, it is vital to assess your business’ profitability. To determine it subtract your total costs from your total revenue. The resultant figure will help you determine if you are selling your product or service at a reasonable price. It will also notify you of any pricing problems and tell you how long before your business is able to break even.