How Do Marketing and Accounting Work Together?
When it comes to business, marketing and accounting seems to go hand in hand. The former talks about creativity and how the company can move forward based on new concepts that will help bring about good fortune in business. The latter is focused more on the company’s financial accountability and it takes into accountant tangible data that will help the company move forward and will see to it that it has enough money to do so.
Despite their nature, they actually work hand in hand in making sure that the company stays afloat and that it will prosper for a very long time. So, how will these things work together? Read on to find out.
But before I start, accounting for your company is really hard, especially if there are a lot of different business operations and that you have a lot of employees. For that purpose, you may want to get accounting business services in Malaysia because they are well-equipped with the knowledge and expertise that are needed for your company to flourish.
The marketing team will always find new ways to entice customers to buy the company’s new products and services. This has the negative effect of expecting too much from their efforts and may lead to frustration if they expectations are not met.
This is where the accounting team comes in. It will be the one to create the company’s projections and it will provide a somewhat accurate forecast by looking at current metrics to help determine how much profit the company will make given a certain period of time.
In other words, even though the marketing team may create projections of their own; the accounting department will be the one to confirm if the projection is indeed plausible.
Marketing requires a certain budget before it can carry out its planned marketing campaigns. The accounting department will be the one to look at the company’s coffers and see if there is extra money to spare for such things.
Remember that there are a lot of things to account for in business. It includes sales and operational costs, possible profits from business products and services, among many others.
The accounting team will also be the one to assess if the previous marketing campaigns were successful or not and whether or not future campaigns will provide any benefit.
The pricing of goods and services is very important and that should be based on a number of factors including the audience for which the company wants to attract, the prestige of the product or service, among many other things.
If the company were to sell an expensive product, it has to be due to the basis that the company sold almost similar products in the past and that it enjoyed so much profits because of that.
The accounting team will be the one to assess and predict if the pricing model the company owners will use is feasible or not.