WHAT DO PRODUCTION ACCOUNTANTS DO?

WHAT DO PRODUCTION ACCOUNTANTS DO?

Bruce Bisbey

Production Accountants are responsible for managing finances and maintaining financial records during film or TV production, working closely with the producer and the production office. Their job includes preparing schedules and budgets for film productions, and managing the day to day accounting financial reporting against the budgets.

Production Accountants usually work on a freelance basis. The experience and qualification required will depend on the size and scale of the film or TV production. Film or TV Production Accountants usually have a qualification in accounting, as well as a number of years' experience in the film industry. Film and TV Production Accountants need to gain the approval of the financiers, guarantors and studios involved in the production, so their qualifications and experience are important.

Specific tasks during production include calculating finances, costing productions, liaising with financiers, and managing cash flow. They must ensure that all legal requirements are met. In pre-production, Production Accountants assist the producers and production managers to prepare budgets. They will set up and manage accounting systems, and supervise assistant accountants and accounts trainees. Production Accountants may also deal with bank finance and completion guarantors. They will finalize all financial records relating to the production, and may also have to arrange an independent audit. Sometimes Production Accountants will work in collaboration with senior accountants, known as financial controllers, who are often permanently employed by production companies, or in collaboration with studio finance executives. Depending on how the film is financed, Production Accountants may also have to deal with bank finance and completion guarantors. They need to keep track of all the relevant paperwork to produce cost reports.

Production Accountants calculate finances, work out the cost of a production, and communicate with financiers (companies or individuals who provide the funding) and control the cash flow, or spending.

They must make sure that payments are made on time and correspond with agreements and approved budgets. They must also make sure the production meets all legal requirements and that the company is a legal trading entity.

In pre-production, Production Accountants help the Producers and Production Managers to prepare budgets and Estimated Final Cost Reports.

During production, they oversee all payments, manage payroll, petty cash and foreign currency and keep accurate financial records. They help monitor budgets, analyze spending and provide daily or weekly cost reports. They also produce cost forecasts to evaluate the impact of any production changes.

Production Accountants are responsible for the health, safety and security of the Accounts department, as well as working as part of the wider film production team. They set up and maintain accounting systems and supervise Assistant Accountants and Accounts Trainees.

Production Accountants must prepare a Statement of Account showing all income and expenditure for the Producer or Production Company and the financiers, and finalize all financial records relating to the production. They may also have to arrange an independent audit.

On larger productions, Production Accountants may work with Senior Accountants, known as Financial Controllers, who are often permanently employed by production companies.

When a Studio (a large film company that finances many films a year) is involved, either through a distribution deal or by funding the production, Production Accountants also work with Studio Finance Executives and must keep to their financial guidelines. Individual studios may have their own Film Production Accountant Manual, which Production Accountants must follow.

SOME OF THE BASICS

• Production Accountants usually work on a freelance basis. …
• Production Accountants must have a good working knowledge of filmmaking processes as well as bookkeeping and accountancy skills. …
• Managing finances and keeping records up-to-date during film productions. …
• Preparing schedules and budgets with the production team. …
• Handling everyday accounting and checking spending against the budget. …
• Have bookkeeping and accountancy skills. …
• Know about the processes in film production. …
• Be very organized. …
• Have strong communication skills. …
• Be able to prioritized and work under pressure. …
• Learn quickly and take the initiative. …
• Maintain confidentiality. …
• Be skilled in accountancy, scheduling and finance software. …
• Understand guild, tax, union and other relevant regulation. …
• Auditing standards and requirements. …
• Financial accounting and reporting. …
• Regulations. …
• Professional ethics …
• Financial risk management. …
• Strategic planning. …
• Financial operations management. …
• Tax preparation. …

GETTING THE JOB DONE

• Account setup. …
• Accounting software setup. …
• Asset administration. …
• Bookkeeping. …
• Budgeting and planning. …
• Cash flow scheduling. …
• Compliance reporting. …
• Cost reporting and auditing. …
• Insurance policy reviews and claims administration. …
• Investment oversight. …
• Payroll processing. …
• Profit participation calculations. …
• Purchasing. …
• Residual setup. …
• Tax preparation. …
• Tax representation. …
• Union reporting. …

QUALIFICATIONS

You should have a BA in Accounting and a number of years' experience in the film industry. The exact level of qualification and experience required depends on the size and scale of each production but you will have to have a proven track record.

You may start as Accounts Trainee in the Accounts team, advancing to Assistant Accountant, then eventually Film Production Accountant. If you have previous experience of working in a junior position in accounts or finance you can advance your career by participating in the Assistant Accountant Training Scheme, delivered by the Production Guild.

If you know any foreign languages this can also be an advantage.

Although working in the entertainment industry can be stressful and a bit overwhelming for some, the majority of production accountants report that it is a very fun fast-paced environment filled with excitement that cannot be found elsewhere. Along with being in high demand and offering several career opportunities for advancement, the role of production accountant provides individuals with experiences that many people can only dream of. If you decide to pursue the in-demand role of production accountant, you too can enjoy traveling to film locations, attending screenings, walking the red carpet at movie premieres, being on set with famous actors or musicians, cashing in on steep discounts for product placements, and working in a creative environment surrounded by talent.

Sources: Google, Wikipedia, IMDB, Media Match, Pinterest, Creative Skill Set, Quora, Accountant Crossing, Masters in Business, Film Production, The Call Sheet, Career Igniter, Amy Fontinelle,  Investopedia, Inside Jobs, Indeed