Everything downstream depends on getting this right. Size the demand too high and you pay for a service and a board you will never use; size it too low and the whole design has to be revisited when the load grows.
The trap at this stage is adding up nameplate ratings. Real installations never run everything at once, which is why every code has diversity or demand factors — and why a house with 40 kW of connected load does not need a 400 A service.