Mills and tsamenyi (2000) suggest that marketers and accountants need each others for the development

of company which can be possible through an understanding, Coordination and socialization. While taking any rational decision management regarding marketing function which is mainly product, place, price and promotion it is necessary to take into consideration of accounting concept like cash budget which helps to planning and controlling the marketing activity, direct costing which helps to management that take decision that which marketing plan is beneficial for the firm as this concept takes into consider the direct, indirect, sunk and other cost which is occurred during the implementation of marketing plan. Financial accounting is very helpful for the analysis of market situation and help investors in their decision making. It summarize the information of creditors, debtors, assets and government and present in a form of income statement and balance sheet which provides net profit of firm and position of the company respectively. Ratio analysis analyses the profitability, liquidity, efficiency, investment which helps to compare with other competitors in the market. Marketers can use analysis of current market situation, trends, level and nature of competition. These can be useful them in launching new product or service and measure their performance. Marketers can also set target on the basis recent income statement as it shows profitability of the company. Brand equity and its value are considered as intangible assets in the financial statement which can help marketers to measure their key asset value.
Chief financial officer is continues to demand net present value for the purpose of calculation of promotional expenditure such as advertisement and other accounting expenses. Cash flow is very important tool for the decision making because it includes payback which helps to tell how long it takes to earn back the money which is invested in the marketing plan. Net present value has lots of important in the management accounting because it is most appropriate tool to evaluate the different plans and takes in to consider the beneficial plan for the firm as it covers the time value of money and depend upon the cash flow over the period of time. Net present value method gives clear idea that which proposal is better as it can compare two different proposals. IRR and ARR is also important tool for the decision making. For example, in fast moving consumer goods sector there is need of threshold level of promotional expenditure, indeed in most commercial situations, there is need of such special kind of expenses to maintain status quo and to encourage the customers to continuing buying. This expense should be minimum for the which can be only explain and calculate by the accountants with the help of net present value method of accounting though it is related to marketing mangers. In todays competitive environment, consemers are demandning good quality at lower price where as
firms are concentrating to search best ways of costing likes direct cost, indirect cost and increase profit. Nowa days brand loyalty are becoming a thing of the past as customer do not hesitate to swith to other substitute product. ABC is the only accounting method which can be used for measure and control the activity costs to the products, service, or customer that consume resourses in order to measure profitability and cost-effective and give information on time. ABC is a budget and analysis process that

evaluates overhead and operating expenses through costs to customers, services, products. It helps managers to select between profitable and non-profitable products. ABC helps management by providing clear picture of how customer service, distribution and promotional functions which generate income for the firm.

Accounting is not just only score keeper it is more than it as many of accounting function worked as planning tool which is similar to management planning. Budgeting is key function for planning as it forces managers to consider problems before they arrive. Budget also force managers to set goals and target and to define the way for implementation of it. Managers are also pressured to define quantitative terms which they want to seek at the end, once this complete, budget gives specification for achieve it (Steiner, 1997). Cash flows also helps for planning as it gives clear idea in the starting point that which plan is profitable. Cost accounting is also very good tool for planning as managers consider information about different cost for set any performance. It will helps in the budget, to set target sales, to decide price. Century 21, H&R block and Orkin exterminating company takes in to consider cost functions to determine discussed function (Crossonand Needles, 2007). Accounting also helps for the controlling the marketing activity. Standard costing and budgetary controlling system is very useful for this controlling. It measures the actual marketing cost and compare it with the planned cost and it also check for any deviation. Budget assign fixed amount for the marketing department for any marketing activity and it also compare actual and predetermined cost. Customer profitability analysis which is performed by cooper and Kaplan (1991) found that this concept allows firm to use information related to customer. From there, the firm can cease the relationship with the customer if it is not profitable and form can focus on profitable customers thus it works as controlling tool. It also find the reasons for the exceeding cost and bring down price. Marketing cost is also covered by ABC analysis. It measure marketing costs to sales territories in order to calculate profit.
In todays competitive environment, consemers are demandning good quality at lower price where as firms are concentrating to search best ways of costing likes direct cost, indirect cost and increase profit. Nowa days brand loyalty are becoming a thing of the past as customer do not hesitate to swith to other substitute product. ABC is very useful accounting method which can be used for measure and control the activity costs to the products, service, or customer that consume resourses in order to measure profitability and cost-effective and give information on time. ABC is a budget and analysis process that evaluates overhead

and operating expenses through costs to customers, services, products. It helps managers to select between profitable and non-profitable products.

There is significant friction between marketing and accounting as it does not meet the

Needs of each other like difference between finding opportunities, measurement, controlling tool (Ratnatunga et al., 1989). There is conflict between marketing managers and accounting managers as marketing managers dissatisfied with the pricing information supplied to them by management accountants because they think accountants are rigid in price determination as they have decide price on the basis of target profit which may sometime not practical in the market and marketers have to face trouble for that (Foster and Gupta, 1994 ).
Accountants see marketers as information resource while marketers see accountants as information resource because accountants think that marketers are more closely to customers so they have much information which can be helpful in preparing ABC function while marketers think that accountant have rich data regarding sales and market trends. This misunderstanding create problem between accountants and marketing managers.

There is one concept in the accounting which is maximization of share holder value which can be obtained by the increase in the price of share. It can be possible thorough cost cutting and low price promotion (McDonald, 2006). While marketing have different view to achieve this target for example, sir Freddie lakers airline was involved a high financial gearing. He then chose to implement low price strategy at busy routes like London/ north Atlantic which has left him open to tactical low price promotion from global and established british airline which resulted into financial disaster. On the other hand virgins low financial risk entry in the same market with differentiated marketing strategy. Now virgin is recognized as profitable international airline. Which suggest that the source of profit is not cost cutting as it is restricted whereas customer value creation is vast and only limited by companys creativity and imagination. Accounting supports cost cutting for profit maximization while marketing support customer value creation. These different views between marketing and accounting create conflict for company. It is necessary focus customer value rather than boosting price of share. Marketing is only considering marketing activity rather than solid metrics which can be applicable for decision making and which help to accountants. The main focus of marketing is to grow beyond the others. However there is no measurement which can evaluate the success of marketing success in accounting system. Brand and customer equity is the key assets of marketing which is not considered by the accounting so marketers have misunderstood accounting as rigid and inflexible which cannot help to measure their key assets. One of the key crisis of marketing outflows is that it takes time for the possessions to manifest themselves in the market. This time lag often transcends the annual fiscal profit and loss account measurement. The reverse is true, in that without much information about market based data in the boardroom, directors are often flying blind but when financials draw attention that there is problem in the plan, they have already missed the optimal point for taking appropriate curative action. It is done because of there is lack of knowledge and understanding of language between marketers and accountants. They have also problem in recognizing of requirements of each other and blame blames each other for any failure. Because of this problem many authors write that there is need of improve communication between these two function of business (Sizer, 1973; Stainer, 1984; Trebuss, 1984).

Many of the accountants tells that budget helpful for marketing effectiveness while Caulkin (2005) says 90% of usa and European firms think budget are bulky and unreliable, cannot control or predict marketing plans. It is rigid and back word looking, instead of focusing managers time on the consumers who are consider as real source of income, they focus their concentration on

satisfying the boss. i.e. as budget become purpose of the firm. It suggests that instead of helping marketing budget misleading them and create problems for them.

There is need of both accounting and marketing in the business organization as it is not possible to carry forward business successfully by giving less important to any two of these functions. There is need of both these function equally in the firm and there should be good relation between these function. Marketing is more practical function which has no restriction; it can be beyond ones expectation. Marketing can be said as thought of mind while on the other hand accounting has some basic ground, rules on which it works. It is necessary to help each other function which is done by them. Accounting and marketing are interrelated as one cannot work without the help of other function. Accounting helps marketing by providing numerical information which is easy to measure and to compare. Marketers forward all information regarding market to account which can be used in the preparing financial statements. Two accountants (Jones and Leauby, 2002) suggest that if there is good relation between this function in firm then it is possible to exploit companys business and its returns. But, for that it is necessary to teaming a companys accountants with marketing managers. Many have argued that it is necessary to reshape the formal accounting and marketing if firm want to recover relevance. It can be possible through considering intangible and non monetary marketing aspects in to accounting. In formal accounting brand equity, customer satisfaction level and other intangible marketing items are missing so it should be considered by accountants. It encourage and increase more control on the marketing personnel as it gives clear values of key marketing aspects (Edvinsson

and Malone, 1997; Kaplan and Norton, 1992, 1996a,b; Skoog, 2002; Sveiby,1997).
To increase the interrelation between these two functions and to teaming them, it requires smooth flow of communication between these two functions. In past, there is lack of communication between accounting and marketing so there is lots of conflicts create in the firm. As both the function have their own language which is hard to understand by the personnel of other department and lack of communication jargons create problems among them. It can be solved by giving training to personnel of other function (Ratnatunga, Hike and Hooley, 1989). However some firms have adopted this strategy to give knowledge of other function, they do not get result as per expectation. It may be because of lack of other aspect.

. two accountants ( Jones and Leauby, 2002) underscore the potential for synergy between accounting and marketing and advance that by successfully teaming a companys managerial accountants with marketing personnel, a firm can exploit its data to increase its returns
Many have argued that in order to recover relevance, formal accounting and management control systems have to be reshaped to take intangible or non-monetary and marketing aspects into closer consideration (Canibano et al., 2000; Edvinsson and Malone, 1997; Kaplan and Norton, 1992, 1996a,b; Skoog, 2002; Sveiby, 1997).

According to Johnson (1992), accounting based performance measures customarily used for operational control purposes which can be used to control a company s relationships with customers and helps to long turn competitiveness and profitability. Now it is time to accept these accounting concepts to remain competitive. Management accounting also considered in disciplines manner as it concentrate on control aspects of managerial decision making and performance of any activity. Further, there is positive relation between management accounting system and business performance (ODonnell, ORegan, Kennedy, Cleary, 2007). Company should not
rely on past and current financial performance in accounting terms, there may be possible of some missing both strategic and knowledge- based perspectives which can improve both operating and market-based performance.

There is lack of understanding and of the information which is required for the marketing function A consistent finding over the years (for example, Schiff and Mellman, 1962; American Accounting Association (AAA), 1972; Rayburn, 1981; Wilson & Bancroft, 1983) is that management accounting has not evolved very far from its production-oriented beginnings and does not, in the majority of companies, meet the needs of marketing management. Accountants often lack the knowledge and understanding of the information requirements necessary for the marketing function. These, and other constraints have caused considerable friction between the functions of marketing and finance and thus much effort is required to manage the accounting-marketing partnership in business. As a result, many authors have suggested ways of developing effective communication between the two functions and of working together to improve corporate effectiveness (Sizer, 1973; Stainer, 1984; Trebuss, 1984). Given the literature available on the area over a lengthy period of time marketing sees accountings role more as day-to-day control and thus do not involve them in the decision making process, a fairly high percentage (37%) were in agreement. It seems that, in general, about half the marketers (and thus their functions) saw accountings role as only one of routine control, whilst the other half involved them more in providing information for decision making purposes Crosson,Susan V., Needles, Belverd E., 2007, managerial accounting, 8th edition, Houghton Mifflin company, U.S.A. Steiner, George, 1997, strategic planning- what every manager must know, free press paperbacks, New York.