Marketing vs. Accounting: Where should your money go?
As a small business owner, you probably already understand the importance of marketing. After all, it doesn’t matter if you make the best products in the world; if nobody knows about your business, you aren’t going to be successful. Many small business owners spend a great deal of time and money marketing their business, but don’t see the importance of accounting.
Unfortunately, that’s a common mistake; accounting is just as important as marketing, and here are a few reasons why.
Cash flow. You probably have a vague idea how much money you’re bringing in, but without a dedicated system in place to track expenditures, you likely have no idea how much money you’re shelling out. As far as marketing goes, that means you can’t keep track of the return on your marketing investment, leaving you in doubt as to whether that snazzy new campaign helped at all.
Efficiency. When you have an accounting system set up, you can do detailed financial analysis to see what’s working for your business and what isn’t. If you’re also marketing, this means that you can figure out the best products to advertise, the optimum number of employees to have on staff during your promotion, and even how much of a discount could be workable for your business.
Saving time. How long does it take you to gather up all the data you need to do your taxes every year? Payroll taxes? Profit and loss? If your system is set up well, this is an easy task to complete.