A production accountant is a term that can be used in two different types of businesses. To begin, managerial accounting necessitates the tracking of production costs and the allocation of those directly related to manufacturing against goods produced by an accountant. A production accountant in the entertainment industry creates or works with a budget and records costs associated with a film or television show. Bills are processed, petty cash is handled, a ledger is kept, and costs are compared to the budget. Each job’s tasks and how the accountant must keep records and report information to stakeholders are equally detailed.
In manufacturing and production companies, cost accounting is a common task. These employees work closely with production managers and are often on the front lines of the accounting department. The cost report is frequently a central document with which these two individuals work to account for costs. The production accountant needs to know the amount and cost of direct materials, direct labor, and overhead for a single good or batch of goods. Cost accountants keep track of these costs on a continuous basis in order to determine profitability.
In the entertainment industry, a production accountant’s responsibilities are a little more varied. Budgets are used by all producers and directors for their films and television shows. The production accountant is responsible for staying within budget and ensuring that a show does not go over budget. If the show is paid for by a third party, the accountant may need to request withdrawals from the third party’s funds. This creates a check and balance system by allowing the producer and director to only use funds as needed rather than having a lump sum to pay for the show.
The production accountant may also be in charge of outsourcing tasks. Payroll, for example, is typically not an accountant’s responsibility. This person, on the other hand, will work with an outside company to handle the payroll for the crew and actors on set. Other specific tasks or analysis may also come from a third party. Instead of completing all minor tasks, the production accountant can be a manager, overseeing the operation.
The production accountant’s primary responsibility is usually record keeping. The job entails document collection and distribution for payroll, tax, and other purposes. A few members of the accountant’s team may assist in recording entries and tracking documents for the show. Within the entertainment industry, he or she may work with a union. This enables the accountant to seek assistance from people who are both trustworthy and knowledgeable.