At what stage do you need a production accountant?
Numbers aren’t for everyone. Which is why the benefits of using a production accountant can be obvious to many.
But when should you call us in?
While we can get started at any stage, it is best that we come in as early as possible, at least during production.
And here’s why:
Scenario one: We’re there for production
Production accounts have a role to play at any stage of a production (we’ve previously published a series on tax, accounting and filmmaking at all stages that you can read).
But we’re busiest during production.
During production, we spend a few hours each week,
- checking receipts
- reconciling those in Xero and,
- doling out petty cash advances to team members in charge of things like costumes, production design, art and locations.
We’d also run weekly cost reports to help you stay on top of your budgets.
Let’s say we process about 100 payments. This doesn’t take too much time.
During a 3 week production you may pay $9,000
Scenario two: We join you when you access the Producer Offset
In this scenario, you stopped filming 1 to 3 years ago.
Can you remember where all that paperwork is?
Instead of processing 100 payments a week for 10 weeks, we’re processing 1000 payments all at once.
And doing a lot of detective work. Like detectives on a case, the trail dries up after too much time.
If any paperwork has gone missing, or things don’t quite match, it’s much harder to get to the bottom of why.
The time investment is much higher, and so is the cost. Instead of $9,000 you are now looking at a cost closer $14,000.
We like to think of it this way, what do you think is faster,
Doing ten 100 piece jigsaws, or one 1000 piece jigsaw?
We know which we would choose!
No matter what stage you’re at, we can help. But if you’re planning an upcoming production, you might like to consider booking us in now. Book your free consult today.
A note on this article
Information provided by the Above the Line Accounting on this website is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute formal financial advice.