Comments for Film Production and The Money

Comment on How to Get Into Film Accounting by filmproduction

filmproduction — Mon, 16 Nov 2009 23:14:15 +0000

I’m working on a feature film production right now (“Devil” developed by M.ight Shyamalan). We should be done filming by Christmas. Hopefully in the New Year I’ll be able to get into a studio and film it.

Thx for inquiring and keep you eye on this blog for updates. You can also find me on Twitter where I try to keep the tweets down to a few meaningful blasts a month.

Best regards,
John

Comment on About John by filmproduction

filmproduction — Mon, 16 Nov 2009 23:11:14 +0000

Thanks for inquiring, Giselle. The answer is probably this winter. I’m looking at a blast of 3 or 4 weeks, covering Michigan new York and Los Angeles. I’ll be doing a survey soon to see in what order and to what extent. It’s a weighty topic that I don’t want to do in half-measure, so it’s a matter of giving the workshop enough time and yet still affordable and can be done while those interested still have a chance to make a living.

Keep an eye on my blog and you can be part of the survey.

Best regards,
John

Comment on About John by giselle

giselle — Tue, 10 Nov 2009 18:22:34 +0000

I am located in NYC. Are there any production accountant workshops coming up soon in the east coast?

Comment on How to Get Into Film Accounting by Ptah

Ptah — Mon, 02 Nov 2009 19:05:56 +0000

When would you have those training tape ready to sale…. i am a line producer in traininig

thanks

Comment on About John by filmproduction

filmproduction — Sun, 25 Oct 2009 02:32:11 +0000

Thx, Mate!

John

Comment on Film Production Accounting by filmproduction

filmproduction — Sun, 25 Oct 2009 02:31:30 +0000

Hi, Ronald. Thx for writing to me.

Technically I believe that you should be sending everyone a 1099 then have them write off the income as a bad debt; however, I don’t know the exact IRS regulation. The way that I’ve seen this sort of thing handled to avoid the recording of income/bad debt is to declare that the non-earned crew salary is actually equity investment – that is they own points in the ownership of the final product.

This would probably mean a re-send of a revised deal to everyone where you and each crew member signs. Conceptually you say that there are 1,000 points in ownership. You and your partners have 50% (hypothetically), then the other 500 points are divided up amongst the others on a pro-rated basis based on how much each person is owed.

So, if you owe $10,000 in total to the crew, and $2,000 is owed to the DP, then the DP gets ($2,000/$10,000)*500 = 100points.

I hope that helps.

John

Comment on About John by filmproduction

filmproduction — Sun, 25 Oct 2009 02:19:50 +0000

Hi, Agatha. Thx for commenting on my blog.

The next workshop on film accounting will be this winter – probably late Jan, or early Feb. Where are you located?

John

Comment on Film Production Accounting by Ronald English

Ronald English — Fri, 23 Oct 2009 01:06:10 +0000

Hey John,

Your blog is very insightful, however I wonder if you could help me with a question that I am having trouble getting answers for.

With the film my company is producing we ran out of funds to pay our staff and contractors. So we had everyone that wanted to continue to work sign deferred payment contracts that basically stipulated that if or when the film was sold everyone would get paid for the amount stated in the contract. No payout date was written into the contract. This was last year. We did not include the deferred payments on our books as a liability, was this right? Does the uncertainty of us selling the film play a role in whether or not we recognize this as a liability. Also, since the services were completed, would that not constitute earned income on the behalf of the staff and contractors? Meaning we’d have to send out 1099s with the earned payment amounts even thought no payment has actually been made yet.

I keep hearing that deferred payments are handled differently when it comes to the film industry but no one can clarify this for me, nor can I find it in writing anywhere.

Any insight into this matter would be greatly appreciated. Thanks!

Comment on About John by Agatha Smith

Agatha Smith — Tue, 20 Oct 2009 02:29:17 +0000

When is the next production accountant workshop?

Comment on About John by Atoy Wilson

Atoy Wilson — Tue, 06 Oct 2009 20:18:45 +0000

John -
I just landed on your blog site and think it’s very informative. In fact, I was searching really for some data on Ease Entertainment and you had mentioned it in regard to the payroll/software companies here in Los Angeles. I have been a Production Accountant for the past 10 yrs, and have gone through that journey as you have exactly detailed e.g. clerk, file room, 2nd asst etc. The projects have been great, the job itself I love, but I have just had a big bout of unemployment for a few months. I’m hangin in there and trying to get my resume out there. I do want however to get on a big series….e.g. Boston Legal type show or on a large film. My shows have all fit nice and neatly in the Media Services domain which I have used almost exclusively. And I Key those shows. To move into the bigger leagues and use PSL3 or Vista I know that I’d enter the field as a 1st. No problems with that.
But I’d love to be able to ask you questions in regard to our field. You seem to a great mentor and advisor. I as an accountant really appreciate that especially when I try to advise younger new accountants, and I don’t have nearly the knowledges you have. But the Divine Direction has gotten me this far and I now have a blog site (I’m an older guy who doesn’t know the blog world that well) I can go to.
Keep up the great work. I assume you live here in Los Angeles? now.
Sincerely,
Atoy Wilson