Cost List For Small Business Form

Many of us, when starting a business, expect that the issue of calculating costs is easy, but he begins to discover that the costs are overlapping, complex, and many, and he discovers that if he does not try to calculate them accurately and plan for them, his project may falter a little. Sometimes when we calculate costs early and accurately, this helps us to manage them well.

The importance of accurate cost calculation is represented in the following points:

1- We know from it the adequacy of the available capital (the economic resources available to the owner of the project) to start the project.

2. The extent to which the project needs to borrow or involve partners.

3. The annual operating costs, which will be compared with the annual revenues to find out the expected profits.

4. Determine the return on investment.