In business, calculations are one of the vital things which are required in many fields. The business calculations can be of different types as it depends on the business you are owning.
Here are some of the common business calculations that might need to be calculated:
- Net income
- Costing of products or services
- Profit/loss calculation
- Number conversion (currency, units, etc.)
- Return on investment
- Markup calculation
- Inventory calculation
These calculations are essential to most businesses but it usually depends upon the type and scale of your business.
In this article, we will discuss the calculating of the business calculation:
Importance of business calculations
In business, calculations are important because this helps the business to grow and run smoothly. Some of the business calculations help to analyze the business activities and this way, the business can become efficient.
For example, if you are calculating a specific product and you come to know that the Return on investment for that product is not better than you can modify the product to get better results.
Some business calculations are essential, especially for the currencies and units.
For example, if you are doing business internationally then you need to convert the currency for the other country.
Similarly, the conversion of the units sometimes becomes essential for your business. Business calculations have become easier because of the availability of online calculators.
Below, we have mentioned some of the business calculators that are available over the internet:
● Income Tax calculator
In business, it is quite tough to estimate the income tax of your business and for that, you might need to hire the services of a professional tax consultant.
However, you can do it yourself through the online Tax calculators which are very easy to use.
During the calculation of Income Tax, there are different factors to consider. Firstly, you should know that every country has different ways of calculating the tax while it might be changed for the business type.
For example, the variation in the business tax might depend on the number of workers, your net income, and the number of owners.
The online calculator can help you in calculating the income tax within seconds with just a little information.
This usually required the details of your net income, your gender, your age, and marital status.
In the business of trading or shipping, one of the most vital calculations is the conversion of the currencies. This is because the trading might be functional into the foreign routes and in this sense, they might have a specific currency to deal with.
For example, in Asia, Crore is more famous than the million measurements but in other regions like European and Africa.
For trading between Asia and Europe, the traders usually need to convert the currency. This is possible through the manual calculation but it might create the problem for low accuracy.
However, the online calculators are very quick as well as accurate for finding the conversion. There are a lot of calculators for converting different types of currencies like crore to million or USD to GBP.
● Saving calculator
When you are planning for an additional business then you plan for the finance. This usually happens when you start saving the expense to have a better capital investment for your new business.
Whether you are saving for your own or a new business, the saving calculator can be used for estimating the average saving for reaching a specific amount.
For example, if you are planning to save one million dollars then this calculator will let you know how much you should save each month to reach the amount within your desired time.
The online calculators require some basic information and then it tells the result. Usually, it requires
- The amount you saved
- The amount you will save
- The annual gain in your income
- Number of years you will save
This is another calculator which is used to calculate the capital budget of the two investments that are currently applied to projects.
For example, if you are running two different businesses then this calculator would help you to gain the capital budget of both of the projects.
Most of the businesses use these calculations to generate the value of their business and this way, they can decide on the investments and efforts to make on their business.
● Loan Calculator
Why get the services of a professional finance professional for discussing the loan when online calculators are available?
The Loan calculator is the one that helps you to plan the loan that you might require in your business.
Businesses, especially the growing one, usually gets familiar with the loan from different banks or organizations and in this regard, the loan calculator can help to make the plans about it.
The online calculators are helpful and efficient because they are quick as well as accurate. They usually require some basic information about the finance including the loan amount, loan term, interest rate percentage, and payback terms (months, years, etc.).
Once you enter this, you can know how much you have to pay monthly to the bank or the organization from where you obtain the loan.
This calculator is helpful when leasing a car, property, or business investment.
● Profit/loss calculator
In business, knowing the profit or loss is the usual thing and companies usually require the services of a professional agency to audit the company and know the profit/loss.
However, instead of getting the services of an agency, you can easily use online calculators for this purpose. An online calculator can help you to find it easily.
These calculators require some basic information like the expenses, income, tax deduction, salaries, and all other debit/credit transactions to make the profit/loss summary.
The online calculators have made it easier for companies to manage their business calculators easily without spending.
These calculators are usually helpful for the finance department of an organization while it can increase the productivity of an organization.
Author: Jake Oscar
The post How to do business calculations easily with an online calculator appeared first on Ghana Talks Business.