The marketing and accounting departments of a small business have autonomous as well as overlapping responsibilities for the overall promotion and fiscal responsibility of the organization. Marketing and accounting frequently work in tandem to develop fiscally smart promotional efforts and to track, measure and evaluate the financial performance of different advertising and marketing objectives.

Budgeting

The marketing department of a small business is responsible for devising appropriate advertising and promotional strategies for the organization. Marketing and accounting work together to determine an appropriate budget to spend on promotional efforts, and calculate the potential return on investment anticipated for various campaigns. For example, a small-business product launch may require a certain investment, attached to an expectation that efforts will increase revenue by a certain percentage. Marketing and accounting will often jointly evaluate market penetration projections and evaluate cost-benefit ratios.

Tracking

Marketing and accounting departments may develop a tracking system for determining how marketing investment dollars translate to increased earnings, increased customer satisfaction, market penetration or new revenue generation. The departments will work together to track where leads and new customers come from, often developing complex statistical models that show how much it costs the company to attract and keep a customer. This helps the company determine how productive various marketing approaches are and which ones are worth the company’s time and money.

Marketing Costs

Marketing and accounting department must be in constant communication with one another about marketing and advertising expenditures. Typically in a small business, the marketing department will be allocated a certain dollar amount for conducting promotional efforts. Marketing may submit purchase order requests to the accounting department as part of the process. Accounting then monitors the marketing department’s budget and provides regular financial reports that indicate whether budgetary projections are on track or have incurred cost overruns. These efforts help the marketing department keep spending in check.

Long-Term Strategizing

One of the keys to success in a small business is pre-planning and development of a strategic vision to guide the organization over the long haul. Marketing and accounting work in tandem to help with long-term strategic planning, particularly as it relates to developing comprehensive and cost-effective ongoing promotional strategies. Both departments typically provide marketing and financial reports to small-business boards and executive officers to use in comprehensive planning initiatives.