Every business has four primary operations: production, accounting, marketing, and human resource management. Synchronization and cooperation between the two are essential to help a business grow smoothly. However, inconsistencies and misunderstandings keep happening when there is inadequate communication in the departments. Out of all the firm's operations , accounting and marketing have a separate impact. While accounting forms the foundation for financing and budgeting the business activities, marketing brings in revenue that requires allocation and optimal use. Although a non-specialist, there might not seem a direct connection between the two departments, a detailed study shows why accounting and marketing collaboration is a must for the smooth sailing of business. Xero bookkeeping services provide solutions that increase coordination and cooperation in the two departments.
The reluctance between marketing specialists and accountants lies in achieving the same goal. While the marketing staff tries to attract and retain customers using the company's strategies, an accountant ensures that appropriate funds are getting received by the departments to carry out their activities. However, there comes a clash between the two parties when marketing wants to spend more and accounting intends to save. It creates a difference of opinion that further aggravates the confrontations between the two departments. However, these two need to understand each others ' intentions and appreciate the value they add towards accomplishing the business' goal to grow. It can happen when:
- Monitoring the effectiveness of marketing campaigns:
When the marketing and accounting department collaborate, they can share the information to analyze the trends. It can happen in the following ways:
- The marketing company can present their proposal regarding a campaign and budget required.
- The accounting department can analyze it and allocate an appropriate budget.
- After implementation, the marketing company will collect information about the campaign's performance from potential customers and give the sales figures to the accounting department.
- Using Xero bookkeeping services , the accounting department can indicate the campaign’s effectiveness . They can use numerous tracking tools and features to monitor the sales trends and retention rate.
- Determining the maximum yielding activities for the firm:
Based on the information received from the company's accounting department, the marketing department can determine the best practices they need to implement to generate more revenue. They calculate the business's accounting marketing efforts to see what worked for them in the past. Also, apart from analyzing trends, they can study the competitor's operations using the information provided by the accounting department. It enables them to create strategies that give them an up over their rivals.
- Studying marketing expenses and profitability:
The job of an accountant is to keep the costs in control to maximize profitability. Similarly, the marketing activities of a business aim to increase revenue to boost their profits. While the end goal is the same for both departments, disagreements occur due to the contrasting nature of strategies. When the two departments collaborate, they achieve the objective without hindering each other's performance.
The accounting department uses financial statements prepared by Xero bookkeeping services to track expenses and measure sales performance. Similarly, the marketing department prepares reports that help the departments decide whether they need new marketing campaigns. On this basis, the marketing department can curb the unnecessary costs and work on strategizing....