Production accounting is one of the few disciplines in the entertainment industry which isn’t evolving as quickly as it should be. 

It may sound like a harsh statement, but it needs to be said. Change doesn’t happen in a vacuum.

So why is this the case?

This is most likely due to a few factors, some of which might have gone completely unnoticed in the past. After all, the basic process of accounting is not unique to the entertainment industry. 

Production accountants are familiar with the technology and process, but the truth is there really hasn’t been much incentive to change. 

Couple such a lack of incentive with the paradigm that many producers and studios have that there is no added benefit to invest capital and resources into a department that doesn’t add a discernible value to what is on the screen and you can see why production accounting has stagnated. 

As long as the crew and bills are paid timely that’s all that really matters, right? The tried and true methods seem to work just fine. 

So it’s easy to fall back on, “That’s how we’ve always done it.” 

You’ve heard somebody say this.

I know it.

How? Because I’ve heard it multiple times, even over the last year. You’re probably even guilty of speaking those words yourself a time or two. I know I have, but early in my career I adopted a new approach because I realized adopting this frame of mind wasn’t a particularly good idea, and it was limiting. 

I became curious. 

Technology and processes change. Unless we make an effort to remain in the flow we can only stay relevant for a short time, especially in the digital age. There is a natural tendency to rely on patterns of behavior that have proven successful in the past, however this can limit our effectiveness today. 

Production accounting has been primarily focused on reporting past performance. 

Sure, we begin each project with a budget, but once that metric has been established our sights return to the past. We keep vigilant watch on what happened yesterday. 

Maybe this is why the mantra “That’s how we’ve always done it,” still stubbornly persists to this day. 

Here’s the thing though: We’ve reached a tipping point. The production process has become much more sophisticated and everyone is feeling the squeeze of budget constraints.. Information is power and the more timely and comprehensive the better. 

There’s also been a stronger shift in the global consciousness in turning more attention to work-life balance. The workforce has evolved from the communal environment of the office to a more independent, remote-friendly nature. 

I must say, at times with limited success. Change isn’t without challenge.

As one accountant recently said during one of our webinars, “I think I was the last person on the planet to want to go remote. I believed in being in the office. What you hear in the corners of the hallways and stuff is always the best place to get information. But accounting is always stuck in an office, and producers and department heads are running around planning for the next scenes, scouting, and stuff like that.”

But take a step back and reflect on it for a moment. Isn't this the antithesis of “how we’ve always done it?”

That same accountant reflected on it, “What we have to get the market to understand is that we don’t need to go to South Carolina, we don’t need to go to Indonesia to do our jobs. We can do it from our desks in LA as these [production accounting] products continue to get smarter.”

This abrupt change of the last few years highlights the real need to seek out more sophisticated options and become curious about how we stay relevant. 

Because staying relevant means staying employed and successful.

Truly casting aside the mantra of “this is how we’ve always done it” begins with effective collaboration in today’s world. 

So…

How do remote / hybrid teams collaborate with confidence?

There are a variety of tools to aid in collaboration, and having the technical prowess to use them is absolutely essential. Once you’ve decided on your tools, make sure every member of your team knows how to use them.

Communication is paramount in the accounting office, and in remote work any flaws in communication will be amplified.

One thing that is often hidden in office environments is the simple fact that some of your team thrive in the traditional office setting but might have difficulty working remotely. Be vigilant and watchful over your teammates. Set up regular check ins and develop a level of trust with each member. 

Remember, the strength of the wolf is the pack.

If you are the one who struggles in a remote work environment, you might find it helpful to keep your office routine in check. Act as if you were going into the office. Wake up, shower and get dressed just as you do for work. If you stopped at a coffee shop on the way to work, then maybe continue to grab that joe! 

Make your workspace sacred. Make it comfortable for you and your own sense of motivation. After all this is where you thrive!

Create a safe environment and make sure everyone not only shares ownership but that each team member can voice their concerns as well as announce their victories. It’s not always easy to highlight that performance is slipping, but if they know the entire team has their back it might be perceived differently.

In addition to this, we need the right software. One that has been designed from the ground up to help teams collaborate in an all digital workspace.

How do we deliver instant, comprehensive information to our producers and studios?

As a controller or key accountant, we know the value of current information. We’ve developed our own spreadsheets and processes to keep our finger on the pulse of production. In the office environment those personalized tools were adequate, but we’re in the digital age.

The organic flow of information in the office environment loses fidelity in our new isolated digital world. We must find new processes of information flow and our accounting software needs to be malleable enough to help. 

The financials are generally viewed through three distinct windows; each with its own agenda.

• The accounting window:The accounting crew needs instant visibility into the flow of approvals, payments, and booked costs. Knowing where things are is deceptively challenging in a digital work environment. Having the right tool is key.
• The producer window: The producing team needs instant information to make decisions quickly.  Their focus is labor costs, and having that info daily is important.
• The studio window: The studio requirements add a few more things to the mix, ranging from a high macro level down to detailed cost analysis. They generally want the information delivered in a specific format, so make sure you have the ability to download or interface directly with your accounting software.

Personally I’ve always preferred a good old CSV file above anything else, and I have gotten really good at ways to present that data repeatedly with relative ease. 

Maybe the “good old CSV file” is still my “That’s how we’ve always done it,” but until something better comes along to top it, I’ll keep using it. 

Don’t mistake relying on proven methods that still work as being “stuck in the past.” The big difference is being able to recognize when there’s a need to move forward with better tools and processes that are currently available. 

If something else eclipses CSV files, I’ll be the first to jump ship.

How do we enlist our extended teams outside of the accounting office to realize shared outcomes?

Today, collaboration is blurring the lines between the accounting team and the rest of production by eliminating redundant tasks. The simple act of a department writing out a purchase order then submitting it to accounting directly though the accounting application both empowers the department and directly benefits the accounting team. It provides visibility for everyone.

Once the crew sees the benefits of working in tandem with accounting, it will become easier for accounting teams to adopt a hybrid approach or work fully remote.

Educating your extended teams in software usage and features is key. Think about the most frequently asked questions and provide a step by step guide. Also, include multiple ways for the crew to reach out to accounting. I would consider including this in the start packets, so everyone feels empowered from the beginning.

GreenSlate also provides many avenues to help train the production crew, from integrated step-by-step walkthroughs for most functions to virtual and on-site training and support. Make sure to highlight these to the crew.

A final break from ‘the old ways’

The entertainment industry is changing, and production accounting needs to change with it. By embracing modern tools, fostering collaboration, and delivering real-time financial data, we can break free from the old ways.

There is a better way than “how we’ve always done it.”

✔️ Keep learning about those better ways by joining our regular webinars (get updates here) or by signing up for GreenSlate training updates here.