Magnitude is a full service digital marketing agency with experience in public relations and new media. We work with select partners to grow online sales channels through marketing strategies. Moreover, we consult with hundreds of Tucson based brands on accounting, production, web, media creation, design and marketing projects.
What is Accounting?
In any industry, accounting refers to keeping records of financial transactions of a company. For film and TV, in particular, the accountant’s job is to manage the project’s finances and maintain records. Specifically, that includes “preparing schedules and budgets for film productions, and managing the day to day accounting financial reporting against the budgets.” For example, an accountant for a TV or movie will calculate production costs, manage cash flow, and take care of finances.
Keep your finances in order
Production accountant is an essential role in TV and film industry. This is the person who works closely with the producer and set coordinator to organize schedules and prepare film budgets. Apart from planning and other tasks, the job involves daily office duties, managing expenses, payroll, providing weekly reports, and estimating future costs.
A few things to know about accounting in TV and film
Managing finances in the movie and TV industry is very important for the finished product to bring profit. At every stage of film making, the crew takes specific steps to fulfill their objectives. Moreover, the duties of the company to its employees and investors are crucial for the film to happen, and that’s where a good accountant comes to play. Here are a few things to know about his or her responsibilities.
Planning
Firstly, managing finances starts with budgeting. As a result, only a sound financial plan can give you an estimate of profit from the movie. At this planning stage, a specialist must review the script and storyline to determine what resources are needed for each scene. Then, with a good plan outlined, you can start filming or begin to approach investors and other sources of funding.
Follow your budget
Keeping records
There are two significant reasons why you should keep track of your spending. Firstly, this will act as a proof of production costs when you file a tax report. Moreover, secondly, it will help you avoid spending money on unnecessary things at any stage of production. In other words, if you follow the budget, even the sudden changes in production flow won’t prevent your movie from happening.
Taxes
Even after screening of the film, tax reporting will go on, in some cases, for years. As your production generates income, the company needs to report profits or losses and pay taxes. The best way to manage that is to hire a specialist who can help your company create a strategy for dealing with tax and reporting obligations.
Fulfill your tax and reporting obligations
Why should you work with us on your next production?
Managing finances requires a lot of work and patience, and it takes your attention away from the set. Magnitude is there to take care of the accounts for you so that you can focus on the task at hand. Our experienced team can also help you with shot lists, directing, casting, and other aspects of film production. Contact us today and let’s talk about how we can help your business grow.
If you would like to know more about accounting, these resources will be helpful.
“What Is Production Accounting?”
“Film Accounting – Tracking Expenses Like a Star.”
“Behind the scenes: accountants in the film industry.”
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