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Accurate calculations are crucial to the financial health of any business. Whether you are planning for starting costs, calculating your breakeven point, or looking at the value of an acquisition, it’s important to employ the appropriate tools. Calculations can be easy or complex but the results are important.
Costs for starting up are the costs needed to start a new business, including fixtures, office supplies, and equipment. Research expenses, such as analysis of the market and industry, can also be included in start-up costs. You can estimate startup costs by looking at the financial statements of businesses in your area or asking your accountant or bookkeeper for specific cost categories. It’s also a good idea to add an insurance buffer, such as 10%, when calculating your initial costs to account for the unexpected.
Calculating your total cost can allow you to determine if you will make a profit after selling your products or services. Calculate your cost of goods (COGS) by using the formula. This is a key figure when setting prices and determining your profit margin.
The top business calculators offer many functions and are easy to use. Certain business calculators come with built-in functions like amortization and interest rate conversions. Some calculators for business have visual graphs, and others connect to computers so that calculations can be saved in a safe manner. There are also business calculators with more advanced features, such as an NPV calculator, which utilizes an estimated cash flow calculation to calculate the net value of future cash flows.