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A production accountant tracks production costs and allocates them to goods produced in manufacturing, while in the entertainment industry, they work with budgets and record costs for films or TV shows, ensuring they stay within budget. They may also outsource tasks like payroll and work with unions to enlist help.
Production accountant is a term applied in two different business settings. First, managerial accounting requires an accountant to track production costs and allocate those directly related to manufacturing against the goods produced. In the entertainment industry, a production accountant creates or works with a budget and records costs related to a film or television show. The accountant processes accounts, handles petty cash, keeps ledgers, and compares costs against the budget. Each job is equally detailed in its tasks and how the accountant is expected to keep records and report information to interested parties.
Cost accounting is a common task in manufacturing and production companies. These workers are often on the front lines of the accounting department, working closely with production managers. The cost report is often a central document that these two people work with to account for costs. The production accountant needs to know the quantity and cost of direct materials, direct labor, and overhead costs associated with producing a single good or batch of goods. Cost accountants work in an ongoing process recording these costs as needed to determine profitability.
A production accountant in the entertainment industry has somewhat broader tasks. All producers and directors work outside the budget of their movies or television shows. It is the production accountant’s responsibility to work within budget and ensure that a show does not go over budget. If an outside company is paying for the show, the accountant may need to request sweepstakes against money held by that company. This provides a check-and-balance system where the producer and director only have funds on an as-needed basis, rather than a lump sum to pay for the show.
Outsourcing tasks can also be the responsibility of the production accountant. For example, payroll is typically not a job for the accountant. That individual, however, will work with an outside company to handle payroll for the crew and actors on set. Other specific tasks or analysis can also come from an external source. This allows the production accountant to be a manager, overseeing the operation rather than completing all the secondary tasks.
Record keeping is often a primary task for the production accountant. The position requires collecting and disseminating documents for payroll, tax and other purposes. The accountant may have a few employees to help record entries and track documents for the program. He or she might work with an entertainment industry union. This allows the accountant to enlist help from trusted and knowledgeable people.
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