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How to Use a Business Calculator
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How to Use a Business Calculator

Business calculations are mathematical concepts that form an integral part of a business’s revenue and finance process. They include profit, loss, interest calculations and salary calculations, among others. These financial calculations aid businesses to manage their revenues and expenses efficiently. They are also crucial in preparing invoices, sending quotations, and the calculation of tax. These calculations often require the conversion of numbers from one standard to another, such as dollars and rupees or lacs to crores. A business calculator can be very useful.

Start-up costs

Create a list of all the costs that you will encounter during the initial year of your business. These could include licenses permits, equipment, supplies, a website bookkeeping or accounting charges, and legal or professional consultation fees. It is likely that you will need investigate your industry and study the financial statements of businesses similar to yours to find out what these costs should be. In general it’s a good idea for you to add 10% on top of your estimates in case there are any unexpected expenses.

Net income

Calculating your net income is an easy task, but it’s a crucial one for assessing the financial viability of your business. Subtract your total expenses from your total revenue in order to calculate net profit. The result will tell you if your product or service is being sold at the right price, alert you to any pricing issues, and help you determine the length of time it will take for your business to reach its financial goals.

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Hannu on espoolainen luottamushenkilö, Microsoftille työskentelevä insinööri ja osa-aikainen yrittäjä.
Hannu Heikkinen