Bridging the gap : exploring the relationship between accounting and marketing in the business environment

Abstract

PURPOSE: The objectives of this research include i) to obtain an understanding of the evolution of the roles of both the accounting and marketing departments, ii) to explore the interrelationship between the marketing and accounting functions, iii) to establish the level of information sharing between both departments, and iv) to identify the involvement of both the accounting and marketing departments in strategic decision-making. DESIGN: To achieve the research objectives, a qualitative research methodology was selected, in the form of semi-structured interviews. Separate interviews with high-ranking representatives from the accounting and marketing departments of thirteen companies were conducted. FINDINGS: The findings indicate that both the accounting and marketing departments are undergoing a transformation in line with the current business landscape. While traditional characteristics remain, the accounting function is transitioning into a more modern, business-partnering role. Similarly, the marketing function is gaining prominence for effectively attracting and satisfying customers. These developments have improved the interrelationship between the two departments considerably, despite the presence of various challenges. Technological advancements have also contributed to increased level of information sharing between the two functions. It is vital for the two departments to interact and share valuable insight as they are both crucial for strategic decision-making. CONCLUSION: This study concluded that there has been a significant improvement in the interrelationship and information sharing between the accounting and marketing departments. Furthermore, there is an increased awareness of the need to incorporate each other’s skills into their respective functions. Nevertheless, there is still room for improvement, especially due to challenges in their interrelationship along with issues of transparency, and relevance of data. Ultimately, it is vital for both departments to collaborate given the vital roles both departments have in strategic decision-making. IMPLICATIONS: This research study implies the importance of implementing necessary measures to ensure an ongoing progression in the relationship between the accounting and marketing departments. The recommendations drawn from the findings can provide guidance for further development of the two roles, leading to improved collaboration and integration with the aim of offering relevant insights for strategic decision-making.