Feb 24, 2024 Author: Accounts Junction
The film production industry is a very dynamic industry that works on a slightly different model than other industries. This is also reflected in the accounting of the film industry. Although there are many similarities in the accounting of the film industry, there are few different aspects. A film production accountant has to work on a different pattern here.
It is not possible for any of the inexperienced and general accountants to handle the accounting activities of the film industry. A proper, knowledgeable, and experienced accountant who has worked for the film production company can do it. The film production accounting professionals can handle all the activities in a very efficient way.
How does the production accountant work on accounting activities?
The production accountant tracks all the costs involved in the TV and movie shows. They monitor the expenditures made and ensure that all the costs of production are under budget. They have to coordinate with different departments of film production, like production managers, heads of departments, assistant directors, and others. The size of the film production accountant staff will depend on the size of the production.
What is the similarity and difference between accounting in film production and other industries?
There are certainly many similarities in the accounting of film production and other industries. Some of these similarities include adjustments of projections, tracking the budget, proper noting of financial entries in accounting books, etc.
Some of the important differences between film production accounting and other industries are:
Accounting activities
In other industries, similar activities are continuously happening, while in film production, the accounting for particular TV series and movies will continue until their show is continued.
Budget tracking
It is important for every organization to go as per the budget decided. The budgeting for other types of businesses has a similar pattern that can be made accordingly. It is also made mostly during the financial year. The budgeting of the film production company will depend on the period when the TV series or movies will start and end. For film production, there are multiple expenses handled in the budget simultaneously.
Accounting entries in different position
The accounting entries in other types of businesses are generally in a similar pattern. In film production, the accounting entries are made with different patterns where the cost needs to be properly entered depending on the project type. This will help to determine the cost, revenue, and profit of particular TV series or movies.
Reporting
The reporting for the general types of industries is mostly similar, which gives insights into the financial aspects of a financial year. Whereas, the reporting in the film production must be done in a different way.
These are some of the main differences in accounting for the general industry and the film industry. Only proper film production accounting professionals can handle the accounting activities properly.
It becomes difficult to find a particular niche accounting expert who can handle these activities. So, outsourcing the accounting to experts can be a better way.
Accounts Junction provides a remote film production accountant where you can outsource the accounting task. They have expert film production accounting professionals who can streamline your activities properly. They are well-equipped with the accounting software to handle the activities properly. Accounts Junction is a well-known accounting services provider across the globe.
