The Weight of Marketing and Accounting in Helping Your Business Prosper

Marketing and Accounting

The accounting and marketing departments of a company have self-governing and overlapping duties for the general development and financial accountability of the business. Both departments usually work as a team to produce fiscally wise promotional endeavours and to trace measure and assess the financial efficiency of various marketing and advertising purposes.

The accounting section of a company audits the financial health of an organization based on the financial reports gathered regularly. On the other hand, the department of marketing is the one responsible for handling and expanding the transactions of a company. The department of financial accounts needs to operate strictly along with the marketing section to monitor the tendencies in the business and maintain the effectiveness of the progressions of sales started by the marketing organization.

Like for instance, marketing operations may be prosperous with regards to total transactions, while the department of accounting may conclude that the expense of the particular operation was unreasonable or too high.

Department of Accounting and Financial Records

All organizations need to keep some form of an accounting structure to control the financial decisions of a business. The financial records help the management measure the effectiveness of a company within a specified period. The accounting unit is accountable for the formation and breakdown of the financial records. The department of accounting can monitor the trends in sales and investment inclinations in the company that can provide the management with the data it requires to establish strategies for cost reductions or expansion.

Few of the most critical investments a company can execute are in the fields of advertising and marketing for a business needs to be capable of marketing its merchandises and services. However, they must also be capable of controlling the expense of the advertising and marketing efforts. The tracking and assessment of financial status help the company conclude how fruitful several marketing procedures are and determine which ones deserve the time and funds of the company.

Marketing Statements

The marketing section of a corporation organizes plans to boost sales through sales promotions and advertising. These can include direct broadcasting programs like television and radio operations to indirect programs that involve engagement in the public organizations and the community. The department of marketing prepares an array of statements intended to support the management of the processes ascertaining the sales procedures that operate. The statements may constitute total sales per operations or even the client connections on a particular website advertisement. The marketing department is constantly looking for the most effective way to improve business within the boundaries of the company’s resources.

The Ratio Analysis

One of the factors to progress in the world of business is through pre-planning and construction of a strategic concept to lead the company over the extended period. Accounting and marketing work together to assist with the important long-term preparation, especially as it correlates to producing cost-effective and comprehensive continuous promotional plans.

The management will continuously look at the connection between the transactions and expenses, and these are known as ratios. For instance, the standard ratio is a gross-expense ratio. This method calculates the total investments of a company along with the total sales. For instance, if the gross monthly costs in a period are $50,000 and the gross revenue is $100,000, the total expense proportion is 50 percent ($50,000 divided by $100,000.)

The ratio of gross expense can be broken down into costs associated with major departments in the organization, like marketing. Always remember that accounting and marketing must operate carefully to monitor the proportions of promotion and purchasing expenses to total transactions. For instance, if marketing costs doubled in a season, but the sales remain steady, the management may conclude that the marketing costs were unproductive. This report is known as ratio analysis.


The marketing section and accounting department need to operate closely so that the management can comprehend where the marketing operations are flourishing. Another purpose why both must work firmly together is to anticipate resources for future investments in the areas of purchasing and promoting.

By looking at previous financial outcomes, the management can estimate future expenses for the marketing operations. It is then the role of the accounting department to weigh the marketing unit’s adherence to budget boundaries and as well as the effectiveness of the utilized budgets.

Yassi Parrish is a freelance blogger who is an aspiring business owner. When available, she loves to read online articles on how to run a company properly. At home, Yassi likes to visit sites which focus on finance like Ashe Morgan to gather reliable information.

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