Marketing and accounting teams represent two seemingly opposite realms of a company; but in reality, they’re speaking to the necessary parties in the languages that their respective listeners understand.
Let’s take a look at how marketing and accounting work together in any company and how to maximize the fruitfulness of their relationship.
Campaign ROI, repeatability and timing
When marketers communicate effectively with the accounting department, they work together to capture the costs of campaigns and analyze them. While a marketing team might point to consumer conversions, the accounting team might point to an ROI that is not impressive enough to justify the initial cost. If the dialogue is open, marketers might make a case for repeatability and future ROI, for which accounting can find sufficient budget and optimal timing for funding.
When it comes to timing, the conversation between accounting and marketing is key. Accounting has access to all departmental needs and scheduled investments. When a marketing team has a cunning new idea or strategic development in spring 2019, accounting can point the infeasibility due to another department’s needs during that same time frame. By communicating the overlap, marketing understands the lack of budget. Together, marketing and accounting can find a window of timing that works both for the marketing objective and for the company’s bank account.
Communicating through returns and results
Unless you have experience in several company departments, it can be difficult to promptly understand the value and ROI in each team’s projects, strategies and efforts.
By communicating the logistics of marketing campaigns, marketers invite the accounting team to see the return on investments through increased clients and brand recognition. Accounting may not otherwise have taken the marketing campaign seriously and can now understand how much business the strategy brings back to the company.
Conversely, not every marketing campaign is a home run and not all marketers are quick to see the financial deficit they incur when a creative plan goes awry. Sometimes, accountants need to analyze costs and sales so that marketers understand why an answer is yes or no.
If there is a campaign a marketing team wants to execute or recreate, the accounting department can point out how a similar campaign or the previously executed version did not bring in high enough numbers to justify a repeat. By seeing the cost of the campaign on the company, the marketing team understands the necessity of pursuing ROI-focused strategies.
Understanding the relationship between accounting and marketing is important because it harmonizes two branches of your business that all too often forget how intricately they are interwoven and how working together can improve the business from both teams’ endeavors.
Developing a healthy long-term relationship between accounting and marketing can help your company grow with open, transparent dialogue and a more holistic understanding of all business endeavors.
The experts at Rosy Strategies can guide your marketing and accounting departments through a consultation and set some beginning strategies for working more advantageously together.