3 Reasons why Accounting and Marketing go Hand-in-Hand
Posted 29 Oct '15
Posted 29 Oct '15
Marketing is not solely promoting a product or service, creatively communicating your brand or looking after your customers. It is a mixture of everything your business stands for and how it operates, and a big part of that is your numbers.
Knowing your business numbers such as turnover, profit margin and average dollar sale are just as important as tracking how many phone calls you are getting a week, how many hits to your website and how many sales you are converting.
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.
1. Working with your accountant to understand your turnover and profit margin 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 breakeven 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 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.
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.
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, however 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.
Boost IT works with small businesses as an extension of their own team delivering an IT department on demand. Client’s use our IT solutions and expertise to enhance capability and cyber security, as well as drive innovation and efficiency.
Running a small business and motherhood may seem worlds apart but as I’ve spent the last 18 months adapting to the role of mum and I've realised the surprising similarities between these two roles. Both require unwavering dedication, resilience, and the ability to juggle multiple responsibilities. In this blog, I'll share the invaluable lessons I've learned from running a small business that has uniquely prepared me for the journey of motherhood.
Cornerstone Advice provides financial planning and mortgage broking services. They specialise in working with busy families and professionals to establish a financial roadmap that maximises their financial opportunities alongside establishing a backup plan to protect against the unexpected.