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Managing the finances of multi-million dollar studio films is no small feat. Production finance departments are tasked with tracking budgets and cash flow across multiple departments, ensuring the crew gets paid on time, all while adapting to the unexpected chaos of production.
Even a slight disruption in these operations can lead to costly delays and put the entire production at risk of going over budget. Therefore, effective collaboration between the studio’s finance executives and production accountants is vital to keep the slate on track.
In this article, we’ll break down the key responsibilities of production accountants and finance executives and explore how they collaborate to ensure success. This article is a recap of a Wrapbook Next Event featuring insights from Jason Gondek and Stella Perez.
Our conversation with Gondek and Perez was packed with valuable insights into the world of production finance and accounting. To learn more, sign up to watch the full conversation on demand.
Jason Gondek is a seasoned finance executive with close to three decades of experience in production finance. He began his career as a production accountant with credits at Paramount, Universal, and DreamWorks.
In 2015, he transitioned to a finance executive role, serving as SVP of Production Finance at Warner Bros. Here, he oversaw the financial management of its production slate across multiple continents. Gondek’s expertise lies in managing large-scale productions and leading teams of production accountants.
Stella Perez is a highly experienced production accountant with a career spanning over 15 years. She began her journey in the corporate world during the era of paper-based accounting. In 2008, she first ventured into production, helping build out the accounting workflow at a leading payroll provider.
Since then, Perez has founded her own production accounting service and also served as the production comptroller at two independent production houses. Best of all, she recently joined the Wrapbook team to help revolutionize production accounting!
How do production finance and accounting intersect?
The production finance department plays a crucial role in keeping films on track both logistically and financially. Production accountants and studio finance executives are at the heart of this process, laying down the tracks on which the film production train will eventually run.
Let’s take a look at some of the roles and responsibilities of these roles.
Production accountants are responsible for managing the budget on a short-term basis, ensuring that every expense is accounted for and tracked in the cost report. They are involved as soon as the project is greenlit because they need to establish the production’s finance strategy. Perez explains her methodology:
“Start off with the cash flow. We cash flow the entire budget week to week, and [...] that’s a living breathing document that stays with me from the beginning to the end.”
Production accountants must manage cash flow throughout the production process and ensure funds are available when needed for payroll, vendors, and other expenses. Any interruptions in the cash flow could result in significant delays.
Therefore, accountants must work closely with various departments to approve costs and ensure accurate expense accounting throughout production. Perez even notes how so much of the production accountant’s job revolves around “safeguarding the purse.”
Most importantly, production accountants must thoroughly understand the film’s financial status and communicate this data with the studio to ensure smooth financial operations.
While production accountants focus on the production side, finance executives manage the strategic aspects of the company’s finances as a whole.
First and foremost, they are responsible for approving the overall budget for each project and ensuring each stays within the allocated amount. When it comes to how studios rely on finance executives, Gondek highlights that the latter must:
“... [H]ave the insight into what's really going on in each individual film and to be able to provide the context of what's happening and why it's happening.”
Their job involves coordinating the financial logistics and cash flow to ensure that funds are available to cover expenses at every stage of production.
In addition to managing finances, executives like Gondek are responsible for ensuring compliance with relevant financial regulations. This includes managing records for tax credits, preparing for audits, and adhering to corporate finance policies. Once again, they must work closely with production accountants to maintain accurate records and ensure that all financial activities are properly documented for audits and compliance checks.
Effective collaboration between production accountants and finance executives is essential for production to stay on track. So, let’s look at some strategies to better navigate the intersection between these two departments.
Communication across multiple departments is the backbone of a successful production. Both Gondek and Perez emphasize the importance of open and frequent dialog between production accountants and finance executives. According to Gondek,
“The key to success is just an awful lot of talking, not just texting or emails, but really talking about the situation that you’re in.”
A breakdown in communication can lead to costly delays, mismanaged expenses, and production shutdowns. However, effective communication allows production accountants to plan ahead.
Pre-production is where much of the financial groundwork for the production is laid. Perez highlights the importance of starting a dialog early on, noting that finance executives must communicate with the production accountant.
“To set up the show properly, to get the playbook, and to set up the expectations [...] needed for reporting.”
This playbook should outline key workflow elements such as the cash flow, budget allocation, and the project’s financial strategy. Production accounting prep allows accountants to track costs more efficiently and provide a more holistic view of the film’s project final budget.
During production, finance executives and production accountants often discuss the cash flow situation to forecast the production’s financial needs. As Gondek explains, finance executives work closely with “the production accountant and the team in the field to tell us how much this movie is going to be.”
If the production accountant anticipates unexpected expenses, they must ask the finance executive for approval to divert funds. In these situations, an open line of communication is important because production accountants need to provide the story behind the expense to justify it.
Without context, it can be difficult for the studio to understand why certain costs have increased. Perez echoes the importance of transparency when dealing with unexpected costs.
“If I can explain it and give the reasons why we went over budget, I pretty much will be granted an overage.“
Clear communication between both parties ensures that any unexpected costs are handled efficiently. Ultimately, this helps the production avoid financial surprises and keeps the project marching forward.
When Gondek and Perez began their careers in the entertainment industry, production accounting was primarily paper-based. Manually tracking expenses, payroll, and cash flow required extensive paperwork, increasing the likelihood of errors and delays. However, digital tools, like Wrapbook, can significantly streamline your production finance operations.
During their conversation, both Gondek and Perez emphasized the need for all of a production’s financial information and tools to be housed under one digital roof.
Gondek explains their benefits of having these systems in place:
“[It’s] going to make your conversations [with the studio] that much easier because you can get to that data quicker, and it's going to mean a lot more.”
In the old days, finance executives relied on production accountants to manually track and file financial records, which took considerable time and manpower. With Wrapbook, all the data is centralized within the secure platform so that production teams can access their financial documents from anywhere.
This is just one example of how Wrapbook’s next-gen tech can completely revolutionize production workflow and immediately increase efficiency. When asked about the future of production finance and accounting, Gondek encourages teams to embrace technology:
“Don't be afraid of change. Don't be afraid of technology.”
Perez doubles down on this sentiment, claiming that she’ll “never go back to paper, never.”
Whether it’s processing payments or tracking expenses, digital solutions like Wrapbook help production teams stay organized while saving both time and money. These tools also empower production teams to make better financial decisions and ensure that productions remain on schedule and under budget.
Effective collaboration between production accountants and finance executives is crucial for a production’s success. By fostering an environment of open communication and embracing digital tools, you can streamline your production operations today!
Check out Wrapbook’s all-in-one platform if you’re ready to upgrade your production payroll and accounting! You can also watch the webinar for more insights into the intersection between finance and production accounting.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Shiv Rajagopal is a filmmaker based out of Hong Kong & Los Angeles. With a background as a producer of indie films, music videos, and commercials, he writes about the entertainment industry at large. He is also the Co-Founder of Forgotten Films, an indie film company with a slate of films revolving around superheroes from the golden age of comics.
