It may seem like no two departments or functions in a business could be more different than marketing and accounting. On the one hand, you have the creative folks in marketing, coming up with catchy headlines and campaigns and trying to catch the eye of potential customers.
On the other, you’ve got the logical beancounters in accounting and finance, with their spreadsheets, calculators, and account reconciliation software trying to make sure everything balances. Polar opposites, right? Actually, marketing and accounting can work very well together and you’ll want them to if you’re looking for the best business results.
While there may be many differences between marketers and accountants, both are data-driven professionals who work hard to make sure concrete goals are reached. Working together they can create synergy to grow your revenue and profits simultaneously.
So, how can the marketing and accounting teams help each other and, in the process, help the company thrive? Here are a few things to keep in mind as you create a better setting for cooperation between these two departments.
Accounting for Marketers
The goal of any marketing team is to attract buyers and drive sales with both new and existing customers. But not all sales are created equal and improving profitability depends on selling the right thing at the right price at the right time.
While the marketing team gathers data and analyzes reports, their reports typically include overall sales numbers by channel including gross revenue and marketing expenses like ad spend. What they don’t typically include are the other costs and expenses related to products and sales which are key to profitability. If the marketing team isn’t fully aware of the costs involved, including fixed and variable overheads, they may be growing revenue while actually driving down profits.
To optimize outcomes and ROI, the marketing team needs to be in sync with the finance and accounting department to coordinate on product mix and ensure that marketing campaigns are focused on the right products and offers. Failing to get that alignment can leave the marketing team wasting time and energy driving sales that don’t really move the needle for the company as a whole. Accounting can serve as a steering wheel and transmission for marketing, making sure it’s moving in the right direction at the right speed.
Another area where accounting can help inform marketing is taxes. The tax implications of spending decisions can be the difference between a profitable campaign and a campaign that’s slowly draining your coffers. Accounting can help give the full picture both in terms of how much to spend and when to spend it.
Marketing For Accountants
If accounting is the steering wheel for marketing, then marketing is the engine and drivetrain that moves the business forward. While the accounting department can conceptualize the sales that need to take place for the business to be profitable, it can’t make those sales a reality with marketing.
At the risk of mixing metaphors, marketing and accounting often deal with the same data but marketing looks at it as a doctor, and accounting sees it as a coroner. One deals with the numbers in real-time, while actions can still be taken, while the other sees it after the fact but gets a more microscopic view.
The marketing department turns spreadsheets and data into actionable strategies to bring real, live customers in the door. Their research and front-row observations bring the human side to accounting’s data. What works on paper may not work in the real world, where customers react to pricing changes and competitors’ offers.
While the finance and accounting departments may be responsible for creating a budget, insights from the marketing team can inform how much of the budget should be focused to get the most bang for your buck. Seeing both sides of the story gives you the fullest picture and the best possible outcome.
Putting it all together
So, how can marketing and accounting work together in the most effective way? It all starts with communication. In a complex company environment, it’s easy for each team to fall into the trap of isolating and forming silos. This can create an echo chamber where their own data and thought process keeps proving themselves right. The first step is to get marketing and accounting at the same table (or Zoom meeting) on a regular basis. For your team, this could mean weekly, monthly, or even quarterly, depending on the need.
As marketing and accounting start to get on the same page, both teams can talk about the information they need and how their insights may be able to help the other. This is the foundation of creating helpful reports that can be shared by both teams, allowing for an exchange of information on a regular basis.
If it’s too disruptive for the accounting and marketing teams to meet regularly, you may want to assign a liaison in each department who can attend meetings in the other department to field questions and present any relevant data without the need for everyone to be present.
The key is to open the lines of communication so key information flows both ways. As both teams see the fruit of cooperation, the relationship between marketing and accounting can really start to gain momentum. That’s a win/win for the departments and the company.