Financial accounting is, unsurprisingly, an uncommon skill among many professionals. For marketers, in particular, there is often a natural aversion to thinking about numbers beyond those tied to budget allocations and campaign performance. Many rely on the finance department to oversee the company’s financial health, assuming a limited role in financial decision-making. However, this belief can put you and your business at a disadvantage. Even if it doesn’t feel like you have a role to play in their resource allocation decisions, you are a key collaborator. Your insights shape strategy, investment, and influence in growth opportunities meaning that you shouldn’t underestimate the value of your domain expertise and its impact on business. The company’s success depends on your ability to guide, educate, and provide strategic input to CFOs and associated finance members, helping them make the best decisions based on the company’s goals.
The Art of Finance
The first thing to understand about Finance is that, despite the image of objectivity and precision, there is an art to the accounting that establishes the truth about the business finances. Financial figures that you hear and see are often the best approximation of how a business is performing shaped by the inherent dirtiness of data. Yes, financial statements rely on standardized, objective measurements to communicate business health, but they also incorporate estimates and assumptions that introduce a layer of subjectivity. Recognizing that financial numbers are not always black and white is essential in collaborating with your finance department. Your domain expertise can play a crucial role in improving the accuracy of the financial measurement and context in their decision-making. Additionally, your insights can help clarify how specific marketing metrics influence the performance results the finance teams rely on when making budgetary and strategic decisions for the marketing department.
Collaboration Beyond Monthly Budgets
While finance ultimately controls department budgets, they work closely with leaders to determine the necessary funds to operate effectively and achieve key goals. Given this dynamic, marketing leaders should be highly engaged with their financial counterparts. It is essential to educate, inform, and develop resources that help create a shared understanding of financial needs and expectations, communicating in a way that is universally understood across all levels of the business. This collaboration shouldn’t be limited to traditional touchpoints like monthly budget meetings but should occur more frequently on a weekly or daily basis. Anytime there is a high-level strategic marketing meeting, the CFO or another senior financial leader should be included. While they might not need to attend the entire meeting, providing them with an executive summary ensures they walk away with a clear understanding of marketing performance and its financial implications.
The Finance Department is Your Best Friend
If the cadence of collaboration mentioned earlier is any indication, your finance team should be among your closest partners. Research shows that CMOs who can communicate their marketing efforts into a business impact are 37% more likely to report revenue growth versus those who cannot (Think With Google). Being true partners means speaking the same language, aligning on shared goals, and actively supporting each other's needs. This level of collaboration shifts the perception of marketing from a cost center, into a driver of business growth. Transformation is only possible with trust, and this trust is built through consistent, meaningful engagement with your financial counterparts.
Your Goals are the Same
At the end of the day, while our roles and responsibilities differ, our ultimate goal is the same, driving business growth. Everyone reports to the CEO, whose primary focus is scaling the company. When growth stalls, one of the first areas of scrutiny is the marketing budget. Scrutinizing whether costs are fueling success and new business or becoming inefficiencies. The key to avoiding this uncertainty starts with financial literacy and ends with deep collaboration. The best marketers understand this and work closely with finance to ensure their efforts are measurable, predictable, and accountable. This alignment is the foundation for success in sustainably scaling business growth and the impact of your marketing program.