Marketing is one of the most exciting (and necessary) parts of growing a business. It’s where creativity meets opportunity—whether you’re launching Instagram ads, trying out the latest AI tools, or attending networking events. But here’s something many small business owners overlook: Is your marketing paying off?
That’s where bookkeeping and marketing intersect—and as a professional bookkeeper who works with entrepreneurs and small businesses across Canada, I can tell you: you don’t need to guess. You can know what’s working, what’s not, and how to make better decisions moving forward.
Let’s dive into how smart tracking and financial insight can help you make the most of your marketing investments.
The Problem with “Set It and Forget It” Marketing
It’s easy to spend money on marketing and hope it works out. Maybe you’re paying a social media manager, running Google ads, or investing in AI tools like content generators or scheduling platforms.
But if you’re not tracking the results of those investments—or worse, you’re not even tracking the expenses accurately, you’re flying blind.
Here are a few questions I often ask clients:
- How much did you spend on marketing last quarter?
- What percentage of your sales came from those efforts?
- Which platforms or campaigns brought the most leads?
- Are your subscriptions and tools still providing value?
If you’re not sure how to answer those questions, don’t worry, you’re not alone. But that’s also your sign that it’s time to get a better system in place.
Why Marketing Expenses Deserve Special Attention
Marketing isn’t just “another” expense category. It’s directly tied to growth—and when done right, it should generate a return.
Here’s why tracking it properly is essential:
1. Marketing ROI Is Measurable (With the Right Data)
ROI stands for return on investment. If you spend $500 on ads and earn $2,000 in new sales from them, that’s great ROI. But if you spend $1,000 on a new tool and never use it—or don’t know what it accomplished—you’re just burning through budget.
A professional bookkeeper helps you isolate those expenses and compare them to the revenue they generate. Over time, this tells you where to double down and what to cut back.
2. Subscription Costs Add Up Fast
In 2025, many small businesses use 5–10 marketing-related tools or platforms. Think:
- Social media schedulers
- AI content writers
- Design platforms like Canva
- Email marketing tools
- CRM systems
On their own, they might be $15 or $50 per month. But together, that could be $500 or more monthly—and often, we find tools being paid for but barely used.
A professional bookkeeper can review these regularly and flag subscriptions that might no longer be serving your goals.
3. Some Marketing Expenses Are Tax Deductible
Here’s a perk: Most marketing expenses are 100% deductible as business expense in Canada. This includes:
- Advertising (digital, print, radio, etc.)
- Paid social media promotions
- Graphic design and branding services
- Website development and hosting
- Email marketing software
But only if they’re tracked properly. A good bookkeeping system ensures those expenses are categorized correctly—so when tax season arrives, you’re not leaving money on the table.
What Should You Be Tracking?
When it comes to marketing, here are some of the key items every small business should monitor:
| Marketing Element | Why It Matters |
|---|---|
| Ad spend (Google, Facebook, etc.) | Measure results and test new campaigns. |
| Content creation costs | Track whether your investment in blogs, photos, or video pays off. |
| Marketing tools/subscriptions | Ensure each tool earns its keep. |
| Freelancer/contractor fees | Stay aware of who’s contributing and how much it costs. |
| Networking & events | Include travel, booths, promo items, etc. |
| Promotional merchandise | Branded swag? It’s a marketing expense too! |
How a Professional Bookkeeper Helps You Track and Improve Marketing ROI
Still wondering what a professional bookkeeper does to help with marketing?
Here’s how I support clients:
Set Up Smart Categories
We ensure your marketing expenses are properly categorized in your bookkeeping software, like Xero, making it easy to pull reports and analyze spending patterns.
Spot Waste and Underused Tools
By reviewing recurring charges monthly or quarterly, we can catch tools or subscriptions that you’ve forgotten about or no longer need.
Link Marketing Costs to Revenue
We can utilize tracking categories to tag expenses to specific campaigns or product launches, so you can see how much it cost to bring in X number of sales. Over time, this helps you identify your most profitable strategies.
Work with Your Marketing Team
If you work with a social media manager, ad agency, or marketing consultant, your bookkeeper can provide them with financial reports or budget summaries—so everyone is working from the same playbook.
Prep You for Taxes and Growth
Marketing costs directly affect your profit margin. The better they’re tracked, the easier it is to prepare for taxes, apply for funding, or make hiring decisions.
Don’t Let Your Marketing Get Lost in the Shuffle
Here’s what I always say: Marketing is powerful—but only when it’s accountable. As a small business owner, you work too hard to throw money into the wind and “hope” it works. By tracking your marketing expenses and measuring performance, you make smarter decisions—and grow with intention.
And you don’t have to do it alone.
A professional bookkeeper isn’t just someone who balances the books—we’re a partner in making sure your whole business runs smarter, not harder. Whether you need help setting up systems, analyzing your ROI, or making sense of your tools and subscriptions, we’re here for it.
Ready to Take Control of Your Marketing Budget?
If you’re:
- Spending money on marketing but not sure what’s working,
- Unsure which tools or platforms are worth it, or
- Ready to track your marketing expenses like a pro…
Let’s chat. Bookkeeping isn’t just about compliance—it’s about clarity and confidence in how you run your business.
Your marketing dollars should work as hard as you do. Let’s make sure they are.
