Last Updated: December 2025
Film and television production is project-based business at its most intense. Every production is a temporary enterprise with a defined budget, tight timeline, and complex cash flow requirements. Your financial systems must track costs against budget categories in real time, manage cash across production phases, and deliver the reporting that investors, distributors, and funding bodies require.
Productions that lack robust financial tracking frequently discover budget problems too late. A 10 percent overspend identified in week one of a 12-week shoot can be managed. The same overspend discovered in week 10 cannot. By then, you have either cut quality, sought emergency funding, or abandoned the project.
Australian film and television operates within a unique ecosystem. Productions are funded through complex combinations of private investment, distributor advances, Screen Australia and state agency funding, the Producer Offset, and international pre-sales. Each funding source has specific reporting requirements and drawdown conditions.
The Producer Offset provides a rebate of 40 percent of qualifying Australian production expenditure for feature films and 20 percent for other formats. This represents substantial funding but requires meticulous tracking of qualifying expenditure.
Unlike ongoing businesses, each production is essentially a startup and wind-down cycle. You assemble a team, spend intensively for weeks or months, then disperse. Financial systems must capture everything accurately during this compressed, chaotic period.
Production budgets follow industry-standard structures. Your chart of accounts should mirror these categories so financial reports map directly to budget reports.
Above the line costs include writer fees, director fees, producer fees, and principal cast. These are the creative elements that define the project.
Below the line costs cover crew, equipment, locations, transport, catering, and all other production expenses. This is where most day-to-day spending occurs.
Post-production costs include editing, sound, music, visual effects, and deliverables.
Other costs cover insurance, legal, accounting, finance costs, and contingency.
Your profit and loss for a production SPV shows funding received as revenue (recognising complexities around timing) and production costs as expenses. The goal is not profit in the traditional sense but delivering the project on budget while meeting all funding obligations.
Cost report: This is your primary management tool during production. It shows budget versus actual for every category, committed costs not yet paid, and forecast to complete. Review this at minimum weekly during production, daily during principal photography.
Cash flow forecast: Shows when you need money and when you will receive it. Critical for managing drawdowns and avoiding cash crunches.
Trial balance and P&L: Standard accounting reports that feed into completion reporting and audits.
Funding body reports: Specific formats required by Screen Australia, state agencies, and investors. Your accounting system should generate the data these reports require.
For each production SPV:
Revenue accounts:
Cost accounts (abbreviated):
Employee versus contractor determination:
Most crew working on set under production direction are employees for tax purposes, even for short engagements. This means PAYG withholding, superannuation, and workers compensation obligations.
Genuine contractors include those providing services through their own business (equipment hire with operator), those working for multiple productions simultaneously, and those providing defined deliverables rather than ongoing services.
Payment processing:
Crew are typically paid weekly during production. Establish efficient payroll processing to handle high volumes during shoot periods. Many productions use specialist payroll services familiar with entertainment industry awards and agreements.
1. Monday: Finalise prior week timesheets, process accounts payable for approval.
2. Tuesday: Run payroll for crew, process approved supplier payments.
3. Wednesday: Update cost report with actuals and commitments.
4. Thursday: Review cost report with line producer, identify variances.
5. Friday: Cash flow review, prepare drawdown requests if needed.
- Production accounting: Movie Magic Budgeting and Showbiz Budgeting are industry standards for production budgets. Hot Budget offers cloud-based alternatives.
- General accounting: Xero at $78 monthly handles SPV accounting well. Set up fresh Xero organisations for each production to keep reporting clean.
- Payroll: Entertainment industry specialist providers like Cast & Crew or Media Super-compatible payroll services handle award complexity.
- Petty cash and expenses: Expensify or Xero Expenses for managing location spending and crew reimbursements.
- Typical costs for mid-budget production:
How should production companies structure their accounts?
Use a separate SPV (typically a proprietary limited company) for each production. This isolates liability, simplifies investor and funding body reporting, and provides clean completion accounting. Your ongoing production company handles development, overhead, and producer fees across projects.
When should we recognise funding as revenue?
This depends on the funding agreement terms. Investor contributions are typically equity, not revenue. Distributor advances may be recognised as revenue when delivery conditions are met. Government funding recognition depends on whether conditions are attached. Consult your accountant for treatment specific to each funding source.
How do we manage cash flow across production phases?
Map your budget spend by week across the production timeline. Overlay funding drawdown schedules. Identify gaps where you need bridging finance or adjusted drawdown timing. Maintain a cash buffer for unexpected costs. Update forecasts weekly during active production.
What records do we need for completion reporting?
Keep all supplier invoices, crew deal memos and timesheets, contracts, purchase orders, bank statements, and supporting documentation for every transaction. Funding bodies and auditors will examine records in detail. Organised contemporaneous records make completion audits straightforward.
How do we track qualifying expenditure for the Producer Offset?
Maintain a schedule of all Australian expenditure, identifying which costs qualify. Generally, goods and services provided in Australia by Australian entities qualify. Consult with your entertainment accountant early to structure spending appropriately and maintain required records.
Scale Suite delivers embedded finance and human resource services for ambitious Australian businesses. Our Sydney-based team integrates with your daily operations, working like part of your internal staff but with senior-level expertise.
Disclaimer: This guide provides general information only and does not constitute tax, legal, or financial advice. Producer Offset eligibility, funding body requirements, and employment classification rules involve complex regulations specific to your circumstances. Always consult with an entertainment industry accountant and lawyer for advice on your specific productions.
Scale Suite delivers embedded finance and human resource services for ambitious Australian businesses.Our Sydney-based team integrates with your daily operations through a shared platform, working like part of your internal staff but with senior-level expertise. From complete bookkeeping to strategic CFO insights, we deliver better outcomes than a single hire - without the recruitment risk, training time, or full-time salary commitment.
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