The significance of hiring Accountants for the film industry!!

Posted by taxspecialists on August 21st, 2019

From independent movie projects to big-budget movies, the film industry, today, involves high rewards and risks. To be successful, filmmakers and studios have to tackle with challenging tax arrangements, hefty payrolls, as well as uneven cash flows, and this complex financial procedure goes a long way to explaining the significance of Accountants for the film industry and media.

Typically, they do everything that a regular accountant does, and along with this, they also have an eye on each and every part of the production on a regular basis. They also do daily budget and cash flow re-evaluation so that as the film progresses, they can report early signs of issues and offer appropriate solutions to producers as their money gets tight. Accountants for the film industry work as an advisory or as an in-house production accountant.  

Here’s more information about the role that accountants play in audits, planning, and film production financing.

Role of Accountants for the film industry:

An accountant for the film industry is a person who handles the financing part of the film: tracks the cash flow, budget, and also does the hot cost reporting and cost reporting. He/she is not the person who puts a pause on runaway spending; it’s the unit production manager’s job: it’s however, the job of the accountant to warn the unit production manager if there is any overage or possible overages that are coming down the budget line.

On the other hand, regardless of how often you wish to take your accountant’s help, having the right one can be valuable and priceless. But, how do you choose the right accountant for your film production business?

Here, we’ve outlined a few important questions that you should ask when interviewing potential accountants.

-        Are you licensed to work in your state?

-        Where and when did you receive your license to practice?

-        What credentials and degrees do you have?

-        For how many years you are working in this field?

-        Who are your other clients? Can you give me references?

-        Do you specialize in other areas other than film production?

-        What is your availability time? (This question is very important because some accountants are accessible only during the business hours, while others might give you their personal number for contacting them anytime).

-        Which are the other organizations you work for?

-        What is your fee?

Other than considering these questions, it’s also a good idea to regularly meet or speak with your accountant. Make sure to evaluate the financial statements, and go through the issue so you thoroughly know where your money is going. The chosen accountant should go beyond the numbers and should offer you effective ways of costs cutting and also act as a sounding board for questions and queries you have.

Hence, for all these reasons, it’s very important that you hire the right accountant. This is beneficial for the long run as you’ll gain a reputed and honest financial advisor that you can turn to for all types of financial guidance.