There’s a complex world behind the lights, camera, and action of the entertainment and media industry. While companies in other industries may have a straightforward business model and revenue structure, businesses that operate in the entertainment sphere tend to be more varied. With fluctuating cash flows, project-based finances, and diverse revenue streams, managing the finances and accounting functions of these businesses requires a specialized team with the right tools and expertise
Entertainment companies can accurately keep track of expenses by using accounting software and setting up separate cost centers for each project—be it a specific tour, event, or production. This allows teams to accurately attribute costs to the proper project, supporting easier profitability monitoring for each.
From there, teams might implement dedicated apps that capture, store, and organize receipts to keep track of all purchases. To keep accurate records of wage expenses, they may adopt a time-tracking solution for crew and staff members to track their hours and automatically calculate wages. Ideally, these systems will all integrate with one another to minimize manual data entry and the risk of human error
Each media and entertainment organization may have unique software needs depending on the specific nature of the business. However, some general tools and technologies apply throughout the industry. This includes a general accounting software solution like QuickBooks Online, Xero, or Sage Intacct to keep detailed records of all transactions and manage the books. However, there are more industry-specific options available.
Additionally, media and entertainment businesses may use financial management and ERP software that’s specific to the industry to manage cash flows and production budgets. These tools are specifically designed for the industry and often come with pre-made templates and reporting dashboards to streamline financial management and analysis
Specialized entertainment accounting services provide expertise in the areas that are unique to the industry, including project-based accounting, royalties management, and tax-related considerations.
A media and entertainment accountant is well-versed in general accounting principles and knows how to leverage this expertise to help entertainment businesses create sustainable operations
The main aspects of bookkeeping and accounting for the entertainment industry center around project-based tracking and complex revenue streams. These businesses are often focused on managing the financial performance and profitability of specific projects, including individual tours and productions, rather than specific departments or overall business operations.On the other hand, they may deal with a wide range of incoming revenue sources, including ticket sales, streaming royalties, licensing fees, merchandising, and more, which creates some complexity in keeping all records thorough and up-to-date
In a fast-paced, creative industry, it can be difficult to dedicate the necessary resources to accounting and bookkeeping matters with internal efforts alone. Thus, working with an external team that offers bookkeeping services for the media and entertainment industry can be a large advantage. Even though a general accounting firm may be able to offer some level of support, working with a team like Bob’s Bookkeepers that is experienced in the industry can create better results