Importance of Systems Between Production & Accounting

EPs want up-to-date cost reports and accounting is complaining production has 300+ missing receipts. This is an all too familiar scenario. So how up-to-date are these cost reports during production really? They aren't. Why are art and wardrobe's credit card balances so high but they don't reflect what's on the cost report? Why does the gaffer have extra funds on his paycheck but it's categorized to his number and not to expendables?

While Line Producers know wardrobe kinda likes to hold onto their receipts until after production for returns, or that Joe the Gaffer needed a reimbursement, accounting is so strict they won't make assumptions. EPs can only view what's on the cost report, or profit & loss that accounting provides.

Film production accounting is a beast. We spend millions of dollars over the period of weeks on a million different things, all of which need to be tracked precisely and for a multitude of reasons. Film tax incentives require specific tracking which varies state to state, sometimes county to county and city to city. Cash flow too, can only be as effective as the numbers on the pages so when the cost reports aren't accurate it can cause delays everywhere from vendor payments to payroll.

The only way to ease the finance communication between production and accounting is for the producer to lay a solid foundation before production begins. Usually the producer assumes accounting will establish these systems only to find out on week one of production that accounting is missing these 300+ receipts. In the fast paced environment on set, departments are not concerned with turning in a receipt because they are literally slammed every minute knowing will clean up those duties during wrap. Meanwhile the EPs are yelling they already sent you 2MM but you've only spent 1.5MM so your next cash infusion will be 500K short causing your LP to panic.

Accountants are accountants not producers. Even a producer won't know these issues because they are producers not accountants. The producer may blame the LP. The LP is already doing the best they can with the lack of system in place because every project is new, has it's own way of doing things and it ultimately falls onto the producer to establish these systems.

This is where Film Finance Management comes in. We work with the producers and accountants to pinpoint the specific needs BEFORE production begins. Accounting is a fact based industry, they aren't thinking about ways to boost up your tax incentives. We can identify your maximum incentives, advise on how and where to spend, how to properly track and record the spending per state guidelines. The more organized you are before heading into production, the quicker the turnaround on those precious incentives.

Plan better. Spend smarter. Recover quicker.