Film Production Accounting

This post has been well received ever since I first posted it in 2009. I’m updating now to bring it up to 2014 standards.

There is a professional accounting niche that is little known – Film Production Accounting. I regularly receive queries to my web site, or my blog, about film production accounting and of how to enter this field. Most of the queries used to be from the Los Angeles area, but over the past 4 years there has been an equal number of queries from the Film Tax Incentive States.

FILM PRODUCTION ACCOUNTANT CATEGORIES AND EXPECTED PAY

Production accountants have traditionally fallen into the field without much of any kind of accounting background. I believe that film production is the last industry in the world to hire accountants who don’t have some kind of formal training in accounting. Currently, the field of film accounting is looking more appealing to a wide variety of CPA’s who are looking for something more markets to penetrate – or even to change careers. Most film accountants get into that position through a period of apprenticeship as assistant accountants. The levels usually go from File Clerk, 2nd Assistant Accountant, 1st Assistant Accountant to Key Production Accountant (sometimes referred to as the Production Auditor). Another position that is classified as an assistant accountant is the Payroll Accountant. The Payroll accountant is an expert in calculating complicated union payroll time sheets and is usually too busy to do much else than just that one function. A good payroll accountant can make in the area of $1800 to $2,000/week on the bigger Hollywood productions and are worth every cent.

The File Clerk would start in the range of $500-$900/Week, a 2nd Asst Accountant in the $900 – $1400/Week range, a 1st Assistant Accountant in the range of $1,500 to $2,300/Wk.  usually the accountants get a little more on a big Studio production, and less on a small independent production.

THE SKILLS OF A FILM PRODUCTION ACCOUNTANT

The Film Production Accountant needs to be conversant with every area of film production, if not downright expert when it comes to predicting cost overruns. The rapidity of spending during the production of the feature film, or TV show, is so high that it would be a nightmare for someone who hasn’t been exposed to the usual reporting system. That’s why an experienced Film Production Accountant doesn’t get out of bed for less than $2,500 a week (a 5 day week). Experienced production accountants demand and get at least $3,500/5 day week, and if they go on location ask for another $1,000 to cover off Saturdays worked (even though they don’t need to work many Saturdays).

The Film Production Accountant’s job falls into the same three categories as any other accounting function:

– Bookkeeping: the speed of bookkeeping has to be experienced to understand. Petty Cash is often in the $60,000 to $80,000 a week range.

-Reporting: there are very specific Budgeting and Weekly Cost Report formats which can be a bit of an IQ test until you get used to it. This type of report is used throughout the film production world from Australia to India to Europe to North America.

-Auditing: because the money appears to be spent so helter-skelter it can be abused, mostly by producers and department heads. It’s up to the production accountant to see the signals and prevent it before someone embarrasses themselves. There really are lists kept of those deemed to be A, B or C listed. Those that are B and C listed are almost always because of their inability to control their departmental budgets.

So, if you have an accounting background you can pick it up very quickly, but you really do need some experience first. The fact that you’re intimately dealing with so many facets of the actual film production it’s certainly a challenge and, I have to say after 30 years, tons more challenging and rewarding than working in manufacturing, banking, etc.

MY JOURNEY TO, AND IN, FILM PRODUCTION ACCOUNTING

My own background started out in Engineering in the 70’s. Then, when I graduated I saw that open pit mining wasn’t doing it for me, so I started working with an accounting firm to earn a designation. My original purpose was to become skilled enough to be able to use both Engineering and Accounting to help failing businesses turn around. However, after I got my accounting designation I discovered that I would be taking a steep cut in pay to go back to being a junior engineer so I took a job as a Chief Accountant/Controller at a place with about 15 branches. After 5 years I went out on my own, starting a small accounting practice with a couple of other people. After a couple of years of beating the bushes and working 7 days a week I saw that I could make more money as a Film Production Accountant than I could in my practice, so I dropped my office space, my 2 staff, and started working as an assistant accountant.

STEPPING STONE TO FILM PRODUCING AND PRODUCTION MANAGING

Like other industries, after spending many years accounting for and auditing the money, including advising producers and production managers, you start to get the idea that you can do as good as, or better job, at producing. There are many production accountants who have gone on to related film production careers – although, funnily enough, they often keep quiet about it. I presume because they want to distance themselves from the infamous “Blue Suit” – the much maligned Big Studio Exec. (Not a job for me – man, talk about pressure).

THE DOWNSIDE

A downside to Production Accounting is that you don’t ever have a JOB. You get CONTRACTS which last anywhere from 5 weeks to 9 months (pretty seldom longer than that). I’d say that my average contract on a film or TV production in the $20Mil to $40Mil range was about 6 or 7 months. Honestly, I really liked the fact of working with different people. I have often talked with other people in the biz, and we almost all agree that the independence that brings is worth the stress of looking for contracts. Once you’ve been in the business for 3 years, and if you haven’t messed up, you’ll be on call, especially if you’re willing to travel.

So, there’s the pros and cons to getting into the film production industry as an accountant.

HOW TO BUST IN

I spend some time talking about ways to bust in during the weekend workshop. With the advent of tighter and tighter money I see even more opportunities for film accountants as aides to producers, or even film accountants producing projects on their own. Subjects like Film Tax Incentives, verification of paperwork required during Crowdfunding of “Accredited Investors”, cash-flow schedules, familiarity with equity terms, etc can all be easily learned by film accountants, or by professional accountants and bookkeepers interested in penetrating this market. (If you are interested in how this all fits together see this short video).

Good luck in your career, whatever you choose.

For more about training as a film accountant see this link to film accounting workshops and training online.

John Gaskin

Event-University of New Haven,Nov 12/16

Above-The-Line Budget

Above-The-Line Budget

A friend of mine, Tom Garrett, is the Chair of the Film/Media Department at the University of New Haven. His mission is to have his students get REAL, well-rounded education in all facets of filmmaking. Having produced over a dozen movies himself, he knows what it takes to produce films, and he is passionate about having professionals impart their experience to his university’s students .

The Purpose of the Event

This event is a different view of how students can land, and keep, a job in film/TV production, followed by a talk on how business students, accountants and CPA’s can fit into the Film Industry.

Part 1: (Sat. Morning of Nov 12th) What Producer’s Want From Film School Students. This discussion will give the students familiarity with pertinent forms used everyday by crew, as well as ideas on how to find, and keep, jobs in the film industry.

Part 2: (Sat. Afternoon) The Business Side of Film & Media. The Film Industry is generally a closed industry. We open up for viewing the business terms and practices used by Producers, Studio Executives, Financiers, etc. throughout the industry. If you want insider knowledge, then this is the place. Several example documents will be issued as a guide.

The Mix of People Attending

In my last event with Tom there were a mix of filmmakers, documentary producers, distributors, accountants interested in the business, under- and  graduate students. Tom has made many contacts since graduating from the University of New Haven over 35 years ago! So, it will be interesting for both production people to attend as well as accountants, bookkeepers and those just interested in filmmaking.

About the Main Speaker – JOHN GASKIN

John Gaskin has been a Film Production Accountant for over 30 years. He has worked on 55 feature film and television projects of every size in 6 different countries. John has worked with such greats as Ron Howard, Frank Oz, Guillermo del Toro, George Clooney, Meryl Streep to name a few. His book, “Walk The Talk” is used in some universities, and is a favorite of Tom Garrett’s who has used it consistently in his courses since 2012.

More About TOM GARRETT

Tom is a flamboyant character who was described by one of his many admiring students as “Pulp Fiction meets Reservoir Dogs”! Tom drags any student who is willing off to Cannes each year, and he sweet-talks his many contacts into  speaking at his university (wherever that may be, since he’s been a professor at U of Tampa, and Sam Houston University as well). All that is happening while he is involved with the multiple film festivals.

Cheers! See you there!

John Gaskin

 

 

The Three Key Areas of Film Accounting

Film Accounting is somewhat of a mystery to outside accountants. There ARE film industry specific practices that separate film accounting from other industries; however, anyone can learn the three key areas rather quickly, and have a lot of fun at the same time.

There are three basic areas to address, preferably in a hands-on workshop:

1.THE FINANCIAL AND ACCOUNTING CONTROL POINTS

6basicfunctions

6 Basic Functions

There are key accounting control points that are standard throughout any film or television production. I have found a workshop environment to be the best way to learn the workflow and processes, pointing out the control points as we go along. There are typical forms, templates and rules followed in film production accounting. You will be able to take home standard templates and forms used throughout the industry every day. Also, flow charts help as a later reference when you start applying what you’ve learned.

2.THE FILM BUDGET AND THE “COST REPORT”

The Film Budget and the Cost Report issued during any film or television production are

the career maker/breakers for any film accountant or producer. You should have an understanding of how to present, read and manipulate both the Film Budget and the Cost Report, something so important to their career as a producer. (The “Cost Report” is the vernacular for Financial Statements in film production. It is confidential at all levels. This workshop may be the only place you’ll be able to learn how to produce it).

3.CASHFLOW REPORTS AND FILM TAX CREDIT ESTIMATION

An emerging producer, or a film accountant, who can prepare a weekly cash-flow schedule from the budget, as well as a reliable estimate of the tax credits expected, is far in advance of other emerging producers in the same pool. A first step is having typical templates commonly used in the industry to create the cashflow schedules and the tax credit estimates.

REAL SITUATIONS

Within these three areas I convey as many real situations as I can, throwing in examples of fraud and how to control it, how the industry is different/similar to other industries, as well as my real experiences with celebrities like Ron Howard, George Clooney, Steve Martin, etc. There are other areas that I get into given time, including how to find work in the film production industry, both as film accountants, and as a services the CPA can perform in the industry.

FILM ACCOUNTING WORKSHOP 101

My next Film Accounting 101 workshop is coming up in Chicago on Oct 22nd and 23rd. Step 3 above is not gone through in detail, but the templates are provided. The curriculum is more designed for those who want to actually work as film accountants. However, the testimonial below from a producer who recently attended reminded me that it is still what many producers want to know about film accounting:

“John Gaskin has an amazing wealth of knowledge that crosses over into various film departments. In his Film Accounting workshop, he outlines the big picture of film financing and production, and then hones in on the detailed accounting procedures. As a producer, the course has given me the confidence to manage larger budgets and communicate with production accountants more thoroughly on different points of financial control. In addition to attending his course, I also read his book “Walk the Talk”, which I’ve recommended to other industry professionals many times. With both formats John breaks down a breadth of complex information in a manner that is clear and digestible.” SR

Come join us at the next workshop. I promise you will NOT be bored!

 

To find out more about the Film Accounting 101 workshop at http://www.filmaccounting.com

Cheers / John

Film/Television Production – Are There Opportunities For CPA’s?

Above-The-Line Budget

Above-The-Line Budget

FILM & TELEVISION PRODUCTION – ARE THERE OPPORTUNITIES FOR CPAs?

The purpose of this article is to point the CPA towards the film, television and commercial production industry. Is it worth learning more about this intriguing industry? Are there opportunities for CPA’s? Read on and you’ll discover for yourself if it’s worthwhile pursuing this industry. From that point you can start to learn more about the specific practices and terminology of Film Accounting.

MEDIA PRODUCTION – DETERMINING THE VALUE OF THE GDP IN AMERICA

For starters, is it worth looking at “Media Production”? From a total dollar value of Gross Domestic Product, I’d have to answer a resounding, Yes! Back in Dec of 2013 the Bureau of Economic Analysis published the first ever analysis of the value of Arts and Culture. They reckoned that Arts and Culture accounted for $504Billion, or 3.2%, of the Gross Domestic Product in 2011. That 3.2% encompasses everything from advertising to arts education to cable distribution and movie production. To give you some idea of how the 3.2% compares to other industries, the Motion Picture Association of America stated that all of Travel and Tourism at that time accounted for 2.8% of the GDP.

I sifted through the published numbers and came up with an approximate value of $273Billion due to various media “production”: cable, network, feature and advertising/commercial production. See my notations on the table below:

BEA-13-58 Media Production

BEA-13-58 Media Production

 

MEDIA PRODUCTION – PER BEA ARTS/CULTURE CONTINUED TO INCREASE IN 2013

On February 6, 2016 the Bureau of Economic Analysis published statistics for 2013 in their document #BEA 16-07.  Here is a quote from the bottom of the second page of that report: “… total inflation-adjusted spending on all arts and cultural commodities reached $1.1 trillion in 2013. That figure was up 2.7 percent from the year before.”

Here’s another shocker for you. It’s a quote from the top of page 4 of the same report: “Employment for all arts and cultural industries totaled 4.74 million in 2013.”

Enough said. There’s plenty of energy in them ‘thar hills!

FILM ACCOUNTING & AUDITING – A NEW SERIES OF SELF-STUDY CPE COURSES

What is the the cycle of the film industry? How does it go from point A to point B? What really is a film producer and how does he/she need help from CPA’s? What are the common accounting practices and terminology used in film and television production?

The “Overview” course is a 2 hour self-study course which has been very well received, as has been the other courses for those wanting to dig deeper into the nitty gritty (Basic, Intermediate and Advanced).

Watch the video above to see how the course works and it’s content.

VALIDATED MATERIAL AND DELIVERY BY TESTIMONIAL AND CERTIFICATION

The courses have been validated by 4 years of workshops, CPE Sponsor licensing, and numerous testimonials. For more info  SEE THIS LINK.

Some Testimonials:

“We have not worked much in the film industry or film tax credits so thought it would be prudent to get a good foundation. Quite frankly, I did not realize how important it was until I took the first of John’s (self-study) courses. We have a wonderful audit department and plan to look into film auditing to add to our services. I am intrigued and enjoy the nuances of film accounting.” E.E.

The film cycle was especially helpful it IS unique to the industry.” T.S.

The course is a great presentation for an overview.” Z.K.

“I felt the objectives of the class provided good insight into the state film tax incentives and the requirements varying by state, and what the qualifying expenses incurred were.” J.B.

Cheers,

John


ABOUT JOHN

The courses are designed and delivered by a film production veteran, John Gaskin, with experience on over 50 film and television productions in 6 different countries over the past 30+ years, as well as 6 years experience as an instructor in film accounting & auditing,  and managing film budgets. John Gaskin has worked with such greats as Ron Howard (twice), David Valdes (Open Range, Green Mile, Unforgiven), George Clooney (Confessions of A Dangerous Mind) and Gulliermo del Torro (Mama).

For more information, 3 minute videos, course samples, etc. SEE THIS LINK.

Indie Film Production Or Network Television Production

Film Production

Film Production

There was a time when I couldn’t wait to get out of television production and into feature production. Feature productions paid better, the funding was available, the working conditions were much better, the Above-the-Line cast had the “cool factor” that TV just didn’t have at all. That was the 80’s and 90’s. Now flip to 2016. The tables have turned completely.

THE BLOCKBUSTER MODEL

After 2006 it had been getting harder and harder to land feature production work. Since 2008 the number of feature films produced in the $25Mil to $50Mil range has been cut WAY down. Those kinds of feature funding models died with Blockbuster. Instead the features are either the rare “Tent-Pole Films” (gargantuan productions in excess of $100Mil), or stripped down to bare bones in the range of $7Mil to $19Mil. The high risk makes the money scarce, and it makes the job of the Line Producer and Film Accountant much more difficult.

INDIE STYLE FILM PRODUCTION

What I had been left with is the Indie Feature Film production. These lower budget feature productions are often usually backed by a distributor with some % investment, or at least a promise to distribute, with the rest of the money arriving Indie style – bank loans on tax credits, borrowings against overseas pre-sales, loans against trusted distributor sales projections, foreign partners, etc. All of that “noise” makes it difficult for the Line Producer and Film Accountant to stay on track.

  • ATL: Indie feature film productions are often top-heavy. The funding model needs prediction, and the only prediction possible is with a big name “Star”, or at least a well recognized name. (Note sometimes a big name Producer or Director will draw as well – witness “Mama” when  Guillermo del Toro attached his name as Producer.) That usually costs a big chunk of your budget.
  • OTHER: Indie feature films are ALWAYS bottom-heavy – that is, the “Other” section at the bottom of every film budget. This is the section that includes the the bank flat rate charge, loan interest expense, legal fees to the lender, legal fees for the producer, Bond Company fees, development costs, etc. I once asked a bank loans officer, how she determined the flat rate amount that the bank was charging us just to be able to get a loan (this is before interest charges). She said, “Frankly, I charge as much as I can.” For a $9 or $10Mil production, you can expect this section to ring up a total of about $900,000 on an Indie feature film.
  • MANAGING THE CASH AVAILABLE: There is also the cashflow factor – the cashflows are predicted ahead of the time, on a weekly basis, based on the film budget. The bank and the bonding company lock in the cashflows based on that schedule. If the cashflow is wrong, or if spending goes over budget, you find yourself in a situation of spending all your cash as soon as the allotted amount of weekly cash is released by the bond company/bank. Woe to you who can’t meet payroll one week – it’s a very noisy time.
  • BTL: Finally, the only part that most of us got in the ‘Business to do, is the actual production of the script with the Below-the-Line crew. By this point a good chunk of the cash has been allocated to the ATL and OTHER sections, so you may need to hire some inexperienced crew just to keep the costs down.

NETWORK/CABLE TELEVISION PRODUCTIONS

For the past 4 years I have been working on Cable and Network television productions. I’ve never been treated better, the pay is comparable to feature production, the “cool factor” is definitely possible if you’re on the right production, and, most importantly, the money is available! This is an experienced Line Producer’s and Film Accountant’s dream come true.

  • ATL: Network Television generally doesn’t go crazy offering big bucks to “Stars” although the money is still VERY good. The big names are more willing to do television now, witness Woody Harrelson and Matthew McConaughey appearing on True Detective. The cast deals are in place episodically, with pick-up options if the series is picked up for another season, so Line Producing and accounting for ATL is a no-brainer.
  • OTHER: This nightmare of legal costs, interest charges, bonding company fees is borne by the Network, and doesn’t become an issue for the Line Producer or Accountant. Again, it’s a no-brainer.
  • MANAGING THE CASH AVAILABLE: Cash is very important to the studio, so there is also a cashflow prediction system in place. It’s generally a task assigned to the Film Accountant and is prepared according to the studio’s requirements with their pre-formated Excel templates. This task is not even on the Line Producer’s radar. Usually, if the cashflow has been wrong, the studio is forgiving and sends the necessary cash as needed, avoiding the problems of not meeting payroll, etc.
  • BTL: The only downside to working on Network Television Production is that the experienced crews are so busy it’s difficult to keep them together from one season to the next. The Line Producer and Film Accountant need to be on their toes budgeted and shooting  2nd units to complete the types of scripts that are being demanded by the studios.
  • NETWORK/CABLE INTERNAL AUDITS: The only downside to the Network/Cable TV productions, is the seemingly endless list of rules and regulations enforced by their Internal Auditors. Once you buy-into the rules, and have a familiarity with them, the crew settle down and follow them voluntarily. It’s up to the Line Producer and Film Accountant to get the crew to that point, which is not always an easy task.

IN SUMMARY

The times have changed and television production is where it’s at. The funding models are there and the duties of a Line Producer and Film Accountant are in-line with what we like to do – produce scripts.

The Indie world is probably more rewarding to the Producers, and in some cases, to the talent; however, if you’re not working with well known names, like the Coen brothers, then most of your time will be spent wrangling finances so as to keep the production afloat. So, if you’re not looking for awards, I’d recommend getting back into, or staying with, television production.

 

Cheers,

 

John

Check out my new Film Accounting 101 workshop in Chicago at http://www.talkfilm.biz 

 

New Adventures

I  finally have my Green Card. It’s been a long trip, with multiple diversions along the way.

WORK VISA’S ARE PROGRESSIVELY HARDER TO GET

Back in 1988 I looked at moving to the US while I was on a film production in Orlando during the winter. I enjoyed working on film projects in many areas of the USA and looked forward to returning someday permanently.

HOLLYWOOD AND NYC ARE STILL THE BIGGEST PRODUCERS

I was based out of Toronto, and busy with film productions; even though the busiest film and television production were in California and New York (currently followed by Georgia and Louisiana).

MY WORKSHOPS HAVE KEPT ME KEENLY AWARE

Because I have worked in 6 countries, and in 5 different US cities, working anywhere in the USA is not a hardship for me. Also, delivering week-end workshops on US Payroll and Film Accounting throughout America has kept me keenly aware of the US film and production scene.

LOOKING FORWARD TO NEW ADVENTURES

Now that I have my green card I look forward to contributing and sharing my hard earned skills  with you here in the film arena.           New adventures are definitely on the horizon.

 

Cheers / John

Visit http://www.filmaccounting.com for current workshops planned.

 

Film Accounting – New CPE Credits

Now that tax season is over, many CPA’s are planning on the best way to fill their CPE credit requirements. If you’re tired of the same-old-topics, have a look at the largely unknown field of Film Accounting.

FILM INDUSTRY AS AN OPPORTUNITY

Within the film and television industry there are several sources of new revenue opportunities for CPA’s. The most obvious opportunity for CPA’s is to perform audits of the Production Cost Report for the State Film Tax Incentives; however, several other opportunities lurk behind those closed doors, not the least of which is actually doing the film accounting for independent film and television productions.

FILM INDUSTRY SPECIFIC PRACTICES

The best way to learn more about the film industry specific practices, terms and unique general ledger software is to come to a workshop. The workshops are hands-on film accounting activities performed with proprietary general ledger software used in the film and television industry.

FILM ACCOUNTING 101 IN MAY, 2015

The next workshop is in May, before the Memorial Day weekend, in Tampa, FL. According to rave reviews, nobody leaves the workshops bored.

For more information visit http://www.filmaccounting.com

Cheers,

John Gaskin

John has worked over 50 film and television productions in 6 countries over 30 years. See his resume on IMDb and check the testimonials at http://www.filmaccounting.com

 

Producer Tasks Often Overlooked – Cashflows

I recently stumbled across a Filmmaker’s Checklist by Jason Brubaker. I really liked it! Normally, those kinds of lists just annoy me; however, Jason’s list of 65 items all ring true from my 30 years of experience in production. It’s prepared for the small Indie Producer trying to emerge into this very competitive film industry. By all means check it out.

CASHFLOW OF THE PRODUCTION BUDGET

Without taking away from Jason’s excellent list, he missed one vital step – the Cashflow of the Production Budget. This schedule is KEY to arranging financing. Without it the financiers will not know how much is required on a week-to-week basis, making the financing seem like one big blob.

PREDICTION LOWERS THE RISK FOR INVESTORS

Remember, no-prediction = high-risk. Investors want you to show a week-to-week prediction of cashflow requirements FOR EVERY NUMBER IN THE BUDGET. Some of those numbers may be a guess, but it really does give the bonding company, the banks and the financiers a lot of comfort that the Producer is at least attempting to reduce the risk for the investor. See the video clip below.

CASHFLOW OF THE BUDGET WITH ALL KNOWN FUNDING

CashflowsAnother schedule which potential investor’s love to see is a match-up of all budgeted costs with the known funding – sometimes called the “Loan Analysis Schedule”. This is a schedule which matches the budgeted costs with the arrival of any and all funding, whether it be loans on Tax Credits, Equity funding, loans on any Pre-Sales in foreign territories, etc. See this video clip to see what I mean.

FILM PRODUCTION ACCOUNTANT

Yes, this might be the duties of a film production accountant; however, if you are an emerging producer you should have this task as one of your skills when raising financing early in development. Once you have the templates it really is quite easy to master.

See the following links for more information about film accounting courses and film production courses for emerging producers.

 

Cheers / John

Curbing Film Tax Credit Fraud in Louisiana

Since the inception of the film tax credit in Louisiana there have been about a baker’s dozen fraud charges against local film producers. The newspapers love to rage about the illegal goings-on, of how many years the perpetrators can get in jail and of the madness of Louisiana politics. However, nobody thanks the poor auditor who discovered and ultimately exposed the fraud.

TWO WAYS SUGGESTED TO CURB FRAUD

In an article dated April 6, 2015, the Secretary of the Louisiana Economic Development, Stephen Moret, suggested there were two ways that the state could curb fraud and abuse: regulate accountants who audit the film industry and eliminate related-party payments.

DON’T REGULATE, EDUCATE

I would suggest replacing the word “regulate” with “educate”. Get those CPA’s educated before they even get a chance to audit – that’s what California has done successfully for some time now. It is safe to say that Louisiana already has the most comprehensive set of film audit guidelines for Related Party Transactions in America. However, there seems to be a disconnection between the written rules and the way they’re applied in the Film Industry. Click here to download the 8 page guidelines from the LED web site. See pages 3, 4 and 5.

FILM INDUSTRY PRACTICES

The second suggestion of eliminating related party transactions is like telling Americans not to drive cars because the pollution is killing the planet – it’s true, but just not workable. Simply bring the auditor to an understanding of the internal forms, practices and control points accepted as standard in the industry BEFORE the audit.

THANKS TO THE FORGOTTEN HEROES

So let’s remind ourselves who brought the fraudulent activity to light – the film state tax credit auditor. Okay, sometimes it was found a little late, but found it was … and, here’s a big THANK YOU.

I sincerely hope that you got paid in full before the Producer’s accounts were seized!

Cheers / John

For more information on Film Accounting see my Film Accounting 101 Workshop coming up.

Emerging Producers – Overview of the Film Industry

BUSINESS LANGUAGE OF PRODUCING FILMS

Emerging Producers must separate themselves from the crowd as someone who knows the “Business Language” of the investors, Major Studios, Completion Guarantors, Distributors, etc. You can’t be confused with the clutter of people who “have a great idea”, but can’t express their ideas in a business like manner.

The purpose of this article is to help you take a giant step towards your goal as a Producer, and of ultimately financing for your film.

BUSINESS CYCLE

By breaking down the business cycle of film into:

  • Development (Investor Confidence),
  • Green Light Stage,
  • Production Stage,
  • Post & Audit Stage and
  • The Waterfall

you will be able to more confidently discuss the film and television production business from a business perspective with potential investors and completion guarantors throughout North America.

ONLINE COURSE

This online course takes  about 2 or 3 hours to go through, has 12 videos and a 71 page course content. It also includes a download of a $9Mil professional budget example in pdf format.

See http://www.talkfilm.biz/filmbusiness.htm for more information.Overview-Indie

Cheers / John


John is a working film production accountant who has worked on over 50 film and television productions in 6 countries since 1985. His book, “Walk The Talk”, live workshops and online courses are highly regarded. See http://www.filmaccounting.com for more info.

The CPA and the Film Industry

There are several interesting ways that a CPA can service the Film Industry … IF you can get past the general distrust that the Film Industry has of outsiders.

RESEARCH WHAT INTERESTS YOU ABOUT THE FILM INDUSTRY

Do some research. What sort of accounting services does the Film Industry require from a CPA? What are the industry specific practices, reports and terminology? I hear about the Film Tax Incentives in some States. How does that open the door to new business for my practice? What software is used during a film or television production? I think you’ll find that there is very little, if any, information available online – and most of what you’ll find is authored by me.

WHAT PRODUCERS EXPECT FROM A CPA

Producers and Studio Execs have high expectations of anyone they contract with, especially a CPA who charges out at an hourly rate. They will expect the CPA to be familiar with their everyday terminology and to contribute to solutions. Just a few terms considered common are:

  • Inventory (the current cost of developing and producing “product”),
  • Fringes (government and union benefits),
  • Back-End (final equity available),
  • IATSE Turnaround (penalties assessed by crew when not enough given enough overnight rest),
  • SAG residuals,
  • etc

If you are interested in servicing the Film Industry there are a couple of ways you can learn more.

LEARN THROUGH WEEKEND WORKSHOPS – 23 HRS of CPE

Workshops are always the most fun way to learn. I have another one coming up on May 2nd and 3rd in Tampa Bay, Florida.

For more info see http://www.filmaccounting.com/filmworkshops3.htm

LEARN THROUGH ONLINE COURSES – 2 HRS of CPE PER COURSE

However, getting to the workshop location, and breaking away from the office, aren’t always possible – for you or for me. At the end of each online course qualifying for CPE I ask the student if the “stated objectives of the course” were met. There has never been a “No” yet…. that’s 100% of the time every student has said that the stated objectives were met.

For more detailed information about the online courses see http://www.filmaccounting.com/filmaccounting-cpe.htm

If you would like to see the additional comments made by students who have completed the courses of the courses I have listed them below, along with links to short YouTube videos describing each of the course’s content.

Cheers / John


 

 

Several students also had other good things to say.

A SAMPLE OF ADDITIONAL COMMENTS MADE BY STUDENTS

Course #1. Film Accounting and Auditing – An Overview

  • “Yes. Great introduction of the role the production accountant will play within the overall film production life-cycle.”
  • “Yes – it was pretty much an overview. I feel I have a much better understanding of film accounting now.”
  • “Yes! Very easy to follow. An excellent intro to the industry.”
  • See this short video reviewing the content of this course.

Course #2. Film Accounting and Auditing – The Basics

  • “Yes, great to see the various sample forms. The workflow charts are also very helpful.”
  • “Yes, the detailed explanations of the various forms, as well as the general ledger software, were very helpful.”
  • “Yes, very useful. I now have a sound understanding of the basic principles of production accounting.”
  • See this short video reviewing the content of this course.

Course 3. Film Accounting and Auditing – Intermediate

  • “Yes. Great explanation of the inter-relationships between the various reports and overview of the audit plan.”
  • “Yes. Enjoyed the course and learned a great deal about auditing productions.”
  • See this short video reviewing the content of this course.

For more detailed information about the online courses see http://www.filmaccounting.com/filmaccounting-cpe.htm

 

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