The accounting department of a business monitors the financial condition of a company based on financial statements that are compiled on a regular basis. The marketing department is responsible for managing and developing the sales of a business. The accounting department must work closely with the marketing department to monitor trends in the business as well as manage the efficiency of sales promotions initiated by the marketing company. For example, a marketing might campaign might be successful in terms of gross sales, but the accounting department might determine that the cost of the campaign was too high.
Accounting Department and Financial Statements
All businesses must keep some form of accounting system to monitor the financial results of a business. The financial statements help management gauge the profitability of a business within a given period. The accounting department is responsible for the preparation and analysis of the financial statements. They can monitor sales trends and expense trends in the business that can provide management with the information it needs to make plans for expansion or cost reductions. Some of the most important expenditures a business can make are in the areas of marketing and advertising. A business must be able to market its goods and services, however they must also be able to manage the cost of the marketing and advertising efforts.