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3 Reasons why Accounting and Marketing go Hand-in-Hand

As small business owners it’s almost certain that at some point we can get lost in the day to day dealings working in our business and lose focus working on our business.  Before you embark on a marketing campaign it is important to first understand  your business numbers including turnover, profit margin and average dollar sale.  This is because something as simple as knowing your numbers and what they mean for your marketing strategy can be a driver to ensure you are putting time into products/services that work, you are hitting your targets and know what you need to do to get where you want to be.

Finance and Marketing; the two go hand in hand when growing and maintaining your business. This is why we think that marketers and accountants should work together for your business so that you understand how important the numbers are to your marketing and your marketing to your numbers.  Knowing your business numbers and spending time with your accountant to really understand what they mean for your business is so crucial when marketing a small business as generally cash flow is tight and product/service profitability is essential.

3 Reasons why Accounting and Marketing go hand in hand

  1. Working with your accountant to understand your turnover and profit margins allows you to understand how much money it will take for your business to be sustainable as well as how much money it will take for your business to grow.
    This directly correlates with how much work you need to bring in to ensure that your business is sustainable. When you know your break-even point you know what you should aim to bring in a year/month/week and how through marketing you can get there.
  2. Working with your accountant to understand your most profitable products/services can help you to identify which of those you should focus your time and marketing efforts on. If you don’t work this out you may be wasting time promoting a product/service that is not making you money.
    It can also help you to identify where there is room for improvement with your products/services and where you can work on increasing your profitability (ie. outsourcing vs insourcing, wholesale vs retail).
  3. Working with your accountant to understand your pricing and what you need to charge for your products/services to make a profit and then comparing that to the market average in your industry will allow you to ensure your pricing is profitable for your business while remaining competitive for your chosen market.

What you can measure you can manage – this old saying is so true.  When your marketing campaign is up and running make sure your are tracking the results – both the financial ones like impact on turnover, average sale value and bottom line as well as the leading KPIs such as number of leads received and conversion rates.  Tracking these will enable you to monitor and evaluate the effectiveness of a marketing campaign.

 

Would you like help to determine whether your marketing is working? Contact our team today

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