Marketing Expenses?

Need a step in the right direction on how marketing expenses are typically classed, specifically professional fees (consulting, mailer campaigns) and printing & stationary cost (brochures/flyers/handouts) generated by the marketing department. Is the normal practice to book these against the marketing expense GL based on purpose (purpose = marketing) or expense them by definition of the expense, (professional fees and printing & stationary respectively)? Hope this is clear, happy to elaborate if needed. Thanks

Answers

Anonymous CFO • March 21, 2016

Can it not be both?
Marketing Expense - Professional Fees
Marketing Expense - Stationary

EMERSON GALFO CFO • March 22, 2016

First, it depends on the business model. If your business is Outsourced Marketing, then it would be cost of services. But I don't think that is your business model and I just had to say it.

Second, for financial reporting purposes, it does NOT really matter much as long as it is in the bottom half.

Third, for management reporting purposes, there is really NO standard and it is up to management how they see the expenses. As long as you are CONSISTENT about it. As I have said in the other thread, if you can break it down and identify it to easily pick the line item out, then it is fine.

Anonymous Budget Reporting Manager • March 22, 2016

Thanks. Going through a system change and wanted to be sure we don't re-create inefficiency. FYI, it is financial services so you were right about it NOT being cost of services.

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