A production accountant tracks the costs of a film or television production.
A production accountant is a term that is applied in two different business settings. First of all, management accounting requires an accountant to keep track of the costs of production and allocate those directly related to manufacturing to the goods produced. In the entertainment industry, a production accountant creates or works with a budget and records the costs related to a movie or television show. The accountant processes the accounts, manages small cash, keeps a general ledger, and compares costs against the budget. Each job is equally detailed in its tasks and how the accountant is supposed to keep records and report information to stakeholders.
Production accountants manage budgets for movies and television shows.
Cost accounting is a common task in manufacturing and production companies. These workers are often on the front lines of the accounting department, working closely with production managers. The cost report is usually a central document that these two people work with to account for costs. The production accountant needs to know the quantity and cost of direct materials, direct labor, and overhead associated with the production of a single good or batch of goods. Cost accountants work in an ongoing process, recording these costs as needed to determine profitability.
A production accountant in the entertainment industry has slightly more extensive tasks. All producers and directors work off budget for their movies or TV shows. It is the responsibility of the production accountant to work within the budget and to ensure that the schedule does not exceed the budget. If an outside company is paying for the show, the accountant may need to request withdrawals against money held by that company. This provides a system of checks and balances where the producer and director only have the necessary funds, rather than a single amount to pay for the show.
Outsourcing tasks may also be the responsibility of the production accountant. For example, payroll is not normally an accountant’s task. This individual, however, will work with an outside company to handle payroll for the crew and actors on set. Other specific tasks or analyzes may also come from an external source. This allows the production accountant to be a manager, overseeing the operation rather than completing all the smaller tasks.
Record keeping is usually the main task of the production accountant. The position requires the collection and disclosure of documents for payroll, tax and other purposes. The bookkeeper may have some staff members to help record entries and track documents for the program. He or she may work with an entertainment industry union. This allows the accountant to ask reliable and experienced people for help.