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Shaudi is a Seattle-based musician, theatre artist, writer and social media marketing specialist. She holds degrees from Berklee College of Music and the University of Washington School of Drama.
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.
It’s natural to have lots of questions when stepping into a new industry, particularly one as unpredictable and unique as film. Let’s walk through some of the most frequently asked questions new production accounting professionals encounter.
Some of the more commonly used accounting software options are Wrapbook, ABS (Alternative Business Services), GreenSlate, PSL+by Cast & Crew, ProBooks from Revolution, and SmartAccounting from Entertainment Partners.
Want to get familiar with Wrapbook before your first big project? Get in touch for a walk through to see how Wrapbook streamlines your workflow by simplifying tasks like payroll, accounting, reporting, and more.
The production accounting team works closely with members of the production team to handle petty cash and reconciliations. Depending on the size and scope of your project, the line producer, production coordinator, or another team member will give out cash to crew members for small expenses, then work with the production accountant to log everything and keep track of receipts.
Here’s an example of when petty cash might be needed. Say a film director decides mid-shoot that the actors need to be holding mugs of coffee for a particular scene. An on-set assistant might distribute the cash to a member of the props team so that they can purchase the mugs. The amount of petty cash distributed will be reported to the accounting team, and the props team member will later submit the receipt for the mugs to the production team for proper reconciliation and tracking.
It's a good practice to set up separate accounts for each person handling petty cash to keep things clear and accountable. If you use Wrapbook, you can track your petty cash digitally, and crew members can easily add receipts and transactions for your instant review.
The process for handling cash transactions and reconciliations on set is similar to processing petty cash, but with a few key differences. While petty cash is a set amount of cash distributed for planned purchases and are typically logged and reconciled after the fact, cash transactions are typically more urgent or time-sensitive purchases that are logged immediately.
For example, say a crew member has an unexpected parking fee on location. The crew member would be given the cash to pay the fee by a production team member. Because the transaction is happening on set, the receipt is submitted immediately to the production accounting team.
Both cash transactions and petty cash transactions are good illustrations of the need for great collaboration between producers and accounting teams. Since production accountants typically aren’t on set, you’ll need to be in regular contact with your production team (more on that later in the article).
The documentation you’ll need to provide in order to claim tax incentives varies based on your project’s location, incentive program, and incentive type, so always check the requirements for your specific program.
Generally though, after applying and being approved for an incentive program, your production will need to provide detailed budget and spending reports, proof of expenditures (receipts, invoices, etc.), production timeline, proof of tax status, payroll records, and insurance certificates.
Some incentive programs may also require a final report, summarizing how the production met the requirements of the program in terms of economic impact on the given location. You may also need to show documentation of regulation compliance, like proof you hired a certain amount of local talent or used a specific number of local vendors.
Union contracts affect almost every aspect of a production, including scheduling and costs. Union contracts can affect the way you set up your payroll, budgets, fringes, and more. You’ll also need to be on top of your union compliance monitoring.
You’ll have an assigned union representative for each union involved in your production to help you with any questions that may arise. Wrapbook’s digital platform also includes automated union compliance solutions and in-house union experts.
Here’s one of those in-house experts breaking down SAG-AFTRA contracts and how they can affect your production.
In many ways, the accounting team is the lifeblood of a production, but they’re often not physically present on set. This separation between the accounting team and the rest of the cast and crew makes clear communication with producers, the director, and other crew members essential.
For example, say you’re working on an action film and the team is shooting a huge, expensive scene with a rain machine, a thousand background performers, and tons of stunts.
If shooting doesn’t go well—say, the lead actor gets the flu and can’t leave their trailer that day—that could have serious implications for the production’s budget. You as the accounting team rely on your producers to keep you in the loop for situations like this. Conversely, they’ll be relying on you to communicate about important updates (more info on that below) and reminders, like when it’s time to sign payroll.
As part of your prep for any accounting project, it's important to establish clear communication channels with the production team. Email and text are commonly used, though many teams prefer Slack for its ability to keep an easily searchable record of all interactions.
In addition to digital communication, make it a point to meet regularly with your line producer and production manager to stay aligned on the financial health of the production. Regular check-ins are so important we made them the top tip in our guide to best practices for production accountants.
Your feedback to the production team is crucial for their decision-making, and can help avoid budget or compliance issues.
You’ll want to stay on top of the production’s finances by using cost reports, trial balances, and payroll reports. The production team is counting on your team to spot potential budget shortfalls or other issues early enough to take action.
Similarly, if you spot any payroll or tax compliance issues, inform your production team right away.
Does that all sound like a lot of pressure? It can be, but platforms like Wrapbook are constantly evolving to make it easier for production accountants to keep an eye on these vital components, and share information easily with their teams. With the right tools, identifying and sharing information efficiently becomes much more manageable.
To advance in the field toward becoming a lead production accountant (also called a key production accountant), you’ll need to cultivate a few critical skills. In addition to having a good head for numbers, you’ll need incredible attention to detail, strong organizational skills, and excellent time management. You’ll also need to be comfortable using the latest production accounting software.
It’s also important to develop strong communication and interpersonal skills. Production accountants need to be able to have challenging conversations about budget and compliance with producers and still maintain positive working relationships.
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You’re constantly sharing and asking for information from line producers, other production accounting team members, union reps, and more. So being able to communicate clearly and respectfully, even in time-sensitive situations, is a must.
Good networking and relationship-building skills will also help when it comes to booking that next job. Lead production accountants often hire their own teams for a project, so doing good work and being easy to work with can go a long way toward keeping the jobs coming.
By entering this field, you’re joining a global network of production accountants in an exciting, ever-changing industry.
There are plenty of ways to stay up-to-date with industry changes and regulations. You can join online networking groups for production accounting professionals, including those on LinkedIn, Facebook, and Slack.
You can follow blogs—like our very own The Wrapbook Blog—for industry updates and insights. The National Association of Production Accountants also has a wealth of free learning resources to take advantage of.
If you prefer more formal learning, you can take virtual courses like the ones offered by Stage 32 or, for California residents, the California Film Commision’s production accounting courses.
Congratulations on beginning your career as a production accounting professional!
If you’re eager to get plugged into the production accounting community, sign up for Room Tone, a robust Slack community just for production accountants and film finance professionals. Ask questions, make connections, and access industry events and meetups.
Room Tone also gives you early access to job postings on The List, the industry’s premiere job listing site for production accountants.
Every payroll, purchase order, invoice, and expense—all in one place.
So, you’ve just landed your first production accounting gig in the world of film and TV. Or maybe you’re still hunting for that first accounting job and want to be ready to hit the ground running when you get it. Either way, you’re in the right place.
Whether you're prepping for day one or sharpening your skills while you wait for your big break, we've got you covered. We’ll explore the basics you need to know before your first day of work on a production accounting team. We’ll also answer some common questions early-career production accountants may have so you can enter the industry with confidence.
First, let’s take a look at some of the essential documents, tools, and processes you’ll encounter.
A chart of accounts (COA) is a structured listing of accounts that helps organize and track financial transactions for a production project. It establishes a system for categorizing various elements, including revenue, costs, assets, debts, and equity.
A COA may be one of the first documents you encounter working on a new project. It is first used during the planning phase of a project and informs everything from setting up the accounting system to recording transactions to reporting throughout the project.
Components of a COA include account numbers, account names, and account types.
A trial balance lists all the accounts organized in the COA and shows their corresponding debit or credit balances at a specific point in time.
This document serves as a check, or “trial,” that your accounting records are balanced.
You’ll use a trial balance to verify the mathematical accuracy of transactions, ensuring that all transactions recorded in the general ledger are correct. The trial balance also helps you confirm that debits equal credits, and it helps you identify and correct errors or discrepancies.
A trial balance contains all accounts—including assets, liabilities, equity, revenues, and expenses—and their associated balances.
You’ll need to understand the difference between estimated final cost (EFC) and estimate to complete (ETC).
The EFC is the estimated final cost of a project. This document includes both actual costs incurred to date and revisions to original estimates of remaining work.
The ETC is the difference between what the EFC is and what has already been spent. For instance, if the EFC is $1,000 and $600 has already been spent, the ETC is $400.
One of your responsibilities as a member of a production accounting team will be creating purchase orders, typically referred to as POs.
A PO is a document that a buyer (in this case, your production) sends to a supplier to request specific products or services. It should include details like quantities, prices, and delivery information.
For example, let’s say you’re working on a horror flick, and your special effects makeup team needs to commission a vendor to create custom prosthetics for your lead actor’s monster look. This situation would lead to the generation of a PO for the creation and delivery of the prosthetics.
Let’s look at the process of creating a PO step by step.
1. A member of the production team identifies a need for goods or services, and submits a requisition form to the production accounting department to request approval for the expense.
2. The production accounting team reviews the requisition and facilities approval from the appropriate personnel (for example, the production manager or line producer).
3. The line producer, department head, or other authorized person selects a vendor or supplier.
1. The accounting department assigns a unique PO number.
2. They include the date the PO is created.
3. They record the vendor name, address, and contact details.
4. The accounting department concisely describes the goods or services being purchased.
5. They record the quantity of each item.
6. They list the unit price for each item.
7. They calculate the total cost (quantity times unit price).
8. They assign relevant accounting codes (based on the chart of accounts, cost centers, etc.).
9. They specify delivery or performance dates.
10. They outline the payment terms (for example, “payment is due in full within thirty days from the date of the invoice”).
1. The line producer or accounting team transmits the PO to the vendor.
2. The relevant department (working with the accounting team) verifies the receipt of goods or services.
3. The accounting team ensures the invoice matches the PO details.
4. The accounting team processes the payment according to payment terms established in the PO.
Even with a well-forecasted budget, the nature of film production means that it’s challenging to estimate certain costs due to unexpected changes. Costs that arise during production because of those unexpected changes are considered hot costs.
Hot costs are direct, variable expenses that arise during the actual filming or shooting of a project, as opposed to costs incurred in the planning or post phase. Hot costs are closely tied to the production process and can fluctuate based on the project's size and complexity.
Examples include expenses for cast and crew, equipment rentals, location fees, and specialized services like stunts or visual effects (VFX).
Tracking these hot costs in real time is essential. Hot cost tracking helps the production to avoid going over budget by keeping the forecasting accurate. Tracking these costs aids in cost control and management, financial reporting and analysis, and informed decision-making for producers and stakeholders.
