02 Aug 2024

What Does a Production Accountant Do to Manage Accounting in a Better Way?

A film production accountant plays a very important role in every film project. This person looks after all the money matters during the making of a movie or a show. They keep records, manage the budget, track spending, and make sure everything stays under financial control. The film production industry is a very dynamic industry that works on a slightly different model than other industries. This is also reflected in the film industry's accounting. Although there are many similarities in the accounting of the film industry, there are a few different aspects. A film production accountant has to work on a different pattern here.

It is not possible for any of the inexperienced and general accountants to handle the accounting activities of the film industry. A proper, knowledgeable, and experienced accountant who has worked for a film production company can do it. The film production accounting professionals can handle all the activities in a very efficient way.

How does the production accountant work on accounting activities?

The production accountant tracks all the costs involved in the TV and movie shows. They monitor the expenditures made and ensure that all the costs of production are under budget. They have to coordinate with different departments of film production, like production managers, heads of departments, assistant directors, and others. The size of the film production accountant staff will depend on the size of the production.

Here are the main tasks of a film production accountant:

1. Budget Planning

They help prepare the full budget of the film. This includes salaries, equipment, food, travel, sets, and other things.

2. Tracking Daily Expenses

A production accountant tracks every single expense during shooting. Even small costs like snacks or cab fares are recorded.

3. Managing Payroll

They make sure every actor and crew member is paid on time. Payments are recorded properly, and tax is deducted when needed.

4. Handling Invoices

Vendors and service providers give bills for lights, makeup, sound, and other services. The accountant checks, approves, and pays them.

5. Reporting to Producers

They regularly update producers with spending reports. This helps the team make smart decisions about money.

6. Using Film Production Accounting Software

Many accountants now use film production accounting software. This software helps with fast calculations, data entry, and report making. It also reduces errors.

What are the similarities and differences between accounting in film production and other industries?

There are certainly many similarities in the accounting of film production and other industries. Some of these similarities include adjustments of projections, tracking the budget, proper noting of financial entries in accounting books, etc.

Some of the important differences between film production accounting and other industries are:

Accounting activities

In other industries, similar activities are continuously happening, while in film production, the accounting for particular TV series and movies will continue until their show is continued.

Budget tracking

It is important for every organization to go as per the budget decided. The budgeting for other types of businesses has a similar pattern that can be followed accordingly. It is also made mostly during the financial year. The budgeting of the film production company will depend on the period during which the TV series or movies will start and end. For film production, there are multiple expenses handled in the budget simultaneously.

Accounting entries in different positions

The accounting entries in other types of businesses are generally in a similar pattern. In film production, the accounting entries are made with different patterns where the cost needs to be properly entered depending on the project type. This will help to determine the cost, revenue, and profit of a particular TV series or movie.

Reporting

The reporting for the general types of industries is mostly similar, which gives insights into the financial aspects of a financial year. Whereas, the reporting in the film production must be done in a different way.
These are some of the main differences in accounting for the general industry and the film industry. Only proper film production accounting professionals can handle the accounting activities properly.

It becomes difficult to find a particular niche accounting expert who can handle these activities. So, outsourcing the accounting to experts can be a better way.

Why a Film Production Accountant Is Important

A film production accountant is as important as the director or producer. Without them:

The budget can go out of control.
Payments may be delayed.
Records can be lost.
Legal problems may arise due to tax issues.

They ensure the project stays financially healthy.

How Film Production Accounting Software Helps

Managing a film budget by hand is very difficult. That’s why most production accountants now use special tools designed for the film industry. These tools simplify and speed up the financial process.

Here’s how film production accounting software helps:

Speeds up calculations and saves valuable time.
Stores and organizes all financial data in a single, easily accessible location.
Minimizes errors in payments, taxes, and overall bookkeeping.
Allows real-time tracking of expenses and income.
Simplifies the process of creating detailed financial reports.
Provides secure storage and automatic data backup.
Offers better control over spending and helps avoid budget overruns.

Some advanced software solutions also link directly with payroll systems and tax platforms. This added feature reduces manual work and improves the workflow for any film production accountant.

How to Make Accounting Better During Production

Here are some simple ways to improve accounting in film production:

1. Start with a Clear Budget

Plan every detail of the budget before shooting starts.

2. Use Good Software

Using film production accounting software makes the job easier and faster.

3. Keep Receipts

Every small and big bill should be saved and recorded.

4. Check Reports Weekly

Look at weekly reports to see if the project is on track.

5. Communicate with the Team

Regular meetings with the crew help avoid surprises in costs.

Real-Life Examples of Accounting Mistakes

Many film projects have failed due to bad accounting. Some examples:

A film went over budget because the team didn’t track extra shoot days.
A show had to stop midway because the crew wasn’t paid on time.
A studio faced fines for not filing taxes properly.

These problems show why a skilled production accountant is needed.

Conclusion

Accounts Junction provides a remote film production accountant where you can outsource the accounting task. We have expert film production accounting professionals who can streamline your activities properly. We are well-equipped with the accounting software to handle the activities properly.