There are several ways to approach a movie. There is certainly an artistic approach, but there is also the accounting point of view.
From this approach the producer or the production manager of a movie must ask some fundamental questions before launching. As we know, the shooting of a movie can be subject to many unforeseen events.
: From this point of view, the producer, or failing that, the production manager in a studio must ask some fundamental questions before embarking on the production. From the beginning, it is essential to calculate the cost price (short, long, or medium-length movie), and its depreciation.
It is necessary to forecast the revenues and to estimate the Net Producer Revenue (NPR).
How then is it possible to integrate the various public and private subsidies, a possible payment in nature or an audio-visual tax credit? How can you pay part-time workers? Should the equipment be rented or must it be acquired? Also, the economic stakes and risks are not the same depending on the nature of the content.
Depending on whether one works in the audio-visual sector itself, in cinema, or in the musical field for example, the format of the work is important. The financial deal will not be the same on a documentary, a show, a TV series, or a movie.
The VAT rate, the costs of production, and the distribution of income can also vary considerably. In practice, the accounting approach and fiscal management of the project will therefore be different depending on whether it is a documentary or a TV series. Consequently, a production company that will develop these projects in parallel will face very different tax, accounting, and remuneration issues.
FED is committed to giving you a clear accounting vision of production in line with the current economic issues. The firm puts all its know-how at your service to overcome the pitfalls, and in particular to control the reading and accounting interpretation of contracts.
In this sector, and certainly more than anywhere else, at every stage of a project, the notion of accounting is critical in that it allows the calculation of the cost of production. It is necessary to be constantly vigilant, to be able to distinguish a financial aid, a subsidy or an advantage on receipts. It is also necessary to be able to manage repayable advances (and under what conditions…). Are these funds taxable? Are they subject to VAT?
FED is at every step, thanks to its expertise in accounting, to help you to secure the development of your project, to define the fiscal nature of the funds, and to bring to you the most appropriate accounting solutions for your situation.