Although accounting is not typically thought of as one of the most glamorous professions, those who choose to work as production accountants may find it to be so.
Production accountants are given exceptional opportunities to experience the dynamic entertainment industry rather than spending endless hours in front of a computer crunching numbers. Production accountants, also known as showbiz accountants or entertainment CPAs, focus on offering their accounting services to entertainment companies, film studios, television/film production companies, and others. The following is a thorough description of the job of a production accountant and a step-by-step guide on how to become qualified if you’re interested in using your accounting expertise with a variety of clients, including musicians, actors, and directors.
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A production accountant manages all of the production’s finances. They distribute paychecks and provide Producers with updates on how their actual budget compares to their projected budget.
How To Become a Production Accountant
The size of the production determines the responsibilities of a production accountant. While on a large production there is an entire department with multiple people devoted just to payroll, for independent films it is frequently a one-person team. “It’s a job where people are managing money, paying payroll, reporting to unions, and using software to provide projections for the Line Producer,” says Richard Sotiros, a twenty-year veteran of production accounting.
“It’s important to measure expected expenses versus the remaining budget. Typically, projects start out under budget and with only a small amount of spending, but then things change. However, as spending is monitored, a crucial budgeting category known as “estimate to complete” is developed. ”.
It informs the producers whether they will go over budget or not, whether they need to raise additional funds or change the shooting schedule to stay within their allotted budget. ”.
When a movie studio or private equity firm invests in a project, they want to be sure that their money is compliant with the IRS and to know where the money is going. Many producers have embezzled money meant for the movie instead of using it to build a pool in their backyard.
Since making a movie typically entails bringing a lot of strangers together for a brief period of time, the production accountant keeps track of finances and ensures that each department is being truthful. Try Our New Film Career Finder.
An annual production accountant salary of about $60,300 is typical. A Production Accountant can earn between $21,000 and $114,500 annually.
Even though they are occasionally hired for months at a time, production accountants are independent contractors. According to Sotiros, “A lot of the time a bid to do a job is a flat fee.” The accountant must factor it in to avoid working sixteen-hour days and devaluing themselves.
Without a doubt, a productive production accountant can earn six figures per year. Actually, the rate depends on the market, the reputation, and the kinds of projects that are looking to hire people. Obviously, a movie with a small budget will be paid differently than one with a large budget ”.
“When I was employed by Fox Television, I received weekly pay and had a job that resembled an eight-to-five day. But they frequently paid overtime and tacked on a lot of hours. During hiatus, I picked up other work. ”.
For an independent production, production accountants typically earn $500 to $1500 per week. Rates will increase significantly if the film is larger and involves more work and responsibility.
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“The career of an Accountant is intense. Because there is a lot going on in a short amount of time, they work day and night. An accountant might take a month off in between projects, but when production is in full swing, they’re working nonstop. When things start to heat up, producers need current budgets to make wise choices, says Sotiros.
This is not a career for someone who only wants to work 9 to 5 jobs. In addition to participating in every stage of production, the accountant must be available on call at all times to provide numbers. Even though overtime is compensated, they might be required to work long hours and for several weeks straight if the project demands it.
The Production Manager, Producer, Line Producer, and Studio Representative are the main people an accountant should get in touch with. Technically, the Accountant interacts with everyone because they also handle payroll.
It’s essential to have experience in bookkeeping or accounting, according to Sotiros. “A person could perform bookkeeping and payroll for a simple business or school.” After that, they can work in the film industry to become more acquainted with how everything operates. A person must learn the presentation, structure, and terminology. For instance, what pre-production, production, and post-production costs fall under the categories of above-the-line and below-the-line, respectively ”.
Breaking into the industry can be difficult. After being hired by the Accounting Department, an individual must demonstrate their abilities as well as their dependability and diligence. Once trust has been established, recommendations to other independent productions will be made, or a studio will advance an accountant to a higher position.
A well-paying profession that many people aspire to pursue is accounting because producers pay well to have someone oversee the budget.
“People need to be willing to work for free or minimum wage in order to break into film accounting,” says Sotiros.
For their first opportunity, entry-level accountants need to have experience with transactional recording. They can then learn the craft and more challenging aspects of film budgets from there. Although it is possible to pick up these skills on the job, most producers will only pay those with relevant experience. If someone wants to improve their resume, they might need to start out by doing unpaid work.
It goes without saying that a person must have previous experience with numbers if they want to become an accountant. Sotiros says, “There is a difference between bookkeeping and accounting. While accounting focuses on comprehending the theory behind why certain things are set up in a certain way, bookkeeping focuses on recording transactions. A person must be skilled in both of these if they want to work in the film industry.
“You can learn that by going to school or by working as an assistant in the department of film accounting. In either case, the value of experience and how to acquire it cannot be emphasized enough. Aspirants should also be familiar with software designed for the industry, such as Movie Magic.
Numerous productions each have their own budgeting tools and methods for creating budgets within the software itself. It’s crucial for someone to make sure they can use it without any issues so they can concentrate on the actual accounting act. ”.
To succeed in their careers, accountants need to develop their practical skills, have a theoretical understanding of how budgeting functions, and be proficient with industry-standard software.
Most people have the wrong idea in mind when they think of an accountant. According to Sotiros, “the typical accountant is a mousy individual with thick glasses and no personality. The successful individuals I’ve encountered all have a logical side that makes them astute and adept at handling numbers, but they also have a magnetic personality. When independent and studio productions interview candidates for the position of accountant, the one who can sell themselves the best typically receives the position.
The Accountant has to deal with the big personalities in the movie business who are constantly at odds because there is a lot of tension when it comes to spending money. An accountant is more likely to be successful in their career if they are outgoing and have good stress management skills. Accountants, like many other professions in the entertainment industry, must market themselves to get work and deal with imposing personalities. A shy, avoidant person will have trouble with that.
According to Sotiros, “I entered the industry by first becoming a CPA and then starting a job at a film company. Because of that, I was able to join the organization at a high level even though I didn’t have much experience in the film industry. I also knew how to manage the books.
Even if someone has no plans to work as a grip, editor, or art director, attending film school wouldn’t hurt. They would be better able to comprehend the various line items when performing their accounting duties thanks to their varied experience. It doesn’t have to be a formal institution; it just needs to provide a taste of what making movies is like. Numerous workshops are available that can serve as an introduction. ”.
An accounting background and knowledge of the processes involved in film production will increase one’s chances of finding employment as an accountant. They can start by investigating various accounting firms or contacting the major studios to see if any job openings exist.
“One of the best organizations is the National Association of Production Accountants,” says Sotiros. They provide a community of support for Production Accountants and even have a certification process.”
“There are also training courses and events. The best place to go for the most recent information and online resources is their website. Otherwise, check out the Facebook groups in your area that are available locally. ”.
What would be your most important piece of advice to someone looking to enter this field?
“Aspiring Production Accountants need to be prepared to work hard. It’s not always going to be fun. The majority of it will require hard work, but the job is cool. Independent shoots provide a respectable living, and studio films pay even more.
“Just make sure to take time to rest between opportunities. Make sure not to take too much time off and to always practice because it’s easy to forget about the competitive world in which we live. ”.
“That training includes developing communication and self-confidence skills in addition to budgeting and software.” Since this is a freelance career, it necessitates a broad skill set. The main recommendation is to fully understand it before engaging in it. ”.
What is the most common error people make when attempting to enter this field of work?
The biggest error that people commit is attempting to start a career as a production accountant without being aware of the skills needed for the position. It doesn’t imply that a person must possess all of those abilities. They can be developed over time. ”.
However, a fundamental comprehension of the environment will enable them to identify the necessary development. You could do this by contacting active Production Accountants or by joining some regional Facebook groups. ”.
“A person with a background in accounting could get started, but they must understand that each industry is different.” Working in the oil and gas industry is not the same as working in the film industry Many people make the mistake of assuming that all accounting is the same, so they neglect to research what makes film accounting special. ”.
What is the one question about this profession that people ought to be asking but don’t?
“What are the bad things to expect as an Accountant?
The amount of time a Production Accountant must work cannot be emphasized enough. The days aren’t always enjoyable, and the accountant frequently has to inform the producer of bad news. However, if someone is aware of the drawbacks of the profession, they can set realistic expectations. It’s the only way to survive and maintain sanity. ”.
What is something I missed asking that I should have?
What does a potential Production Accountant hope to gain from their position?
If someone is thinking about becoming a production accountant, they should consider their goals in this field. Working in the film industry carries some prestige and has a lot of magic surrounding it. However, an individual will be happier the more they define their own goals and how their career will help them achieve them. ”.
“There is no job security, and accountants are always hustling to find work.” They must be able to sell themselves. People will be jerks and not apologize. The hours are long. On the other hand, it offers a chance to set your own schedule and work in the entertainment industry. Everybody experiences the weight of each of these factors differently. However, if someone wants a reliable income, this is not the right career for them. ”.
What one word, if any, would best capture what makes you successful?
“The desire to do a good job. I just care about what I do. ”.
Richard Sotiros graduated from Columbia College of Hollywood with a degree in cinema. For clients like Warner Bros, DIC Animation, Sovereign Pictures, and Weintraub Entertainment, he has worked as an accountant. He also served as the first Production Accountant for the popular America’s Most Wanted program on Fox Television.
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What’s a production accountant good at?
FAQ
How do I become a production accountant?
A person who wants to work as a production accountant has two options: either enroll in college to earn an accounting degree and gain experience in the film and television industry, or choose to advance through the ranks of a production company to gain the same level of training and experience.
How does production accounting work?
The director and producers work closely with the key production accountant, who provides them with daily reports on how the production’s spending compares to the budget, which shoots may have exceeded it, and how to address those discrepancies to ensure that the costs are anticipated.
Why is a production accountant important?
Production accountants work closely with the producer and the production office to manage finances and maintain financial records during the production of films and television.
Is production accounting a good job?
Production accounting is a tough job, but a good one. Working in production accounting is a great way to learn about what it takes to make a movie happen if you have an interest in producing or want to make your own movie someday.
