For any company, it is essential that all the departments collaborate in order to get the best possible results. So, it is no coincidence that marketing and accounting should do the same. At first glance it might seem that these two departments do not have that much in common, but, in reality, lack of communication between the two can end up costing the company a lot, both in a financial way and by making the brand suffer. So, to help you understand it better, here are some of the reasons accounting and marketing need to work together.
Let’s start with projections
Just like it is important for a company to have the right people in the right place, it is important to have the right department to handle the right area of business. Now, when it comes to workforce, using trusted management platforms or tools like the renowned Deputy software is a common practice to ensure everything runs smoothly. And it helps improve workforce communication, well there is something similar at work when it comes to departments collaborating. Your marketing department needs to present proper predictions for a campaign that it plans to launch so that the accounting can prepare the funds necessary for the endeavor as well as to monitor the revenue that comes from these campaigns. That way the marketing team can access the success of the campaign and adjust accordingly.
Expenditures are equally important
Each department within a company has its own expenditures, be it for employees, tech o production, this is all relevant when calculating the success of a company. Now when it comes to the marketing department, more often than not these expenditures tend to fluctuate. For example, if you are launching a new product, there needs to be a well-thought-out campaign in place to promote it. This means all hands-on deck and using every possible marketing channel. In return, this will significantly increase the cost of your marketing department for the duration of the promotion. Afterward, it will come back to normal. But what the accounting department needs is to be ready for the change, so that your company can buffer it and not feel the increased spending that much. This can only happen if the two departments collaborate and share their plans in time for the other to react and prepare. Of course, a good marketing campaign can, in fact, generate a lot more revenue for your company by attracting new customers while promoting your brand.
Ratio analysis is a must
Every successful business manager needs to be aware of the ratio between their costs and their sales. This gives them a clear idea of not only the amount of money that is being spent but also on the amount of money that is being made. And it is that ratio that is detrimental for the success of a company. And one of the biggest ratios needed is related to the marketing department. Are the costs justified, and is that particular department providing the desired return on investment for the company. The accounting department can provide the business manager with exactly that answer. They can compare gross sales and the times when marketing campaigns have been launched. In addition, it is those numbers that will provide the business manager with the help they need to decide whether it is worth to allocate more money towards the marketing efforts or should it be limited to that department and rerouted to some of the others within the company.
Finally, there are the long-term strategies
For each marketing department, creating long term strategies is an absolute must. But it is also important that this is done in collaboration with the accounting department. The idea is to monitor if the presented long -term strategies can, essentially, lead to greater profit for the company. And it is the accounting department that can provide the numbers and accurate calculations. By working together these two departments should be able to create cost-effective and comprehensive ongoing plans. And by providing joint regular reports the business manager can keep track whether or nut what is being done has been successful thus far.
There you have it, some of the main reasons you need to ensure that these two departments collaborate within your company. The idea is to have in writing exactly what you have gained with each and every marketing endeavor, and not only that. You also get to monitor long-term plans and how they affect the finances of the company, along with knowing when there was a failure and figuring out how it can be fixed. The bottom line is, your marketing department needs to prove that what they are doing is efficient and that it provides a profit, and that is why they need the accounting to crunch the numbers and help them improve when and where necessary.