The Three Key Areas of Film Accounting
October 1, 2016 Leave a comment
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
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.
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