|
Budgeting
is one of the most important aspects of all productions, determining the
creative and logistical sophistication while establishing the goals and
tone of the production. It is the starting point in determining the
direction and logistical needs of the production. It resolves how much sacrifice will be required of the crew and
production personnel.
Many
Line Producers prepare budgets using cookie cutter formulas, resulting in
the desired dollar amount for presentation to investors and clients. I do not do
that. I carefully research and determine the actual budget, making
the appropriate determination as to what is affordable and what is
not. My budget will be valid for production and won't have to be
"re-concocted" for the actual shoot. Yes, I can make most
projects fit within the budget criteria, however, I demonstrate how it
will be done, and what it will actually cost to accomplish the
project. For low budget productions, I detail what sacrifices have to be made to fit the stated
financial plan.
True
Budgeting is understanding the objective and financial limitation of the
project. Notice I said limitation. A Budget is a
limitation. Without limits a production will run amuck and
literally have the potential of unlimited cost. My Budgets carefully
consider all costs and weigh them against the creative and logistical
consideration with a strong emphasis on contingencies. All
productions need contingencies for there are always unexpected events.
I
am thoroughly familiar with and capable of using the industry standard
Movie Magic Budgeting Software, however, I find it cumbersome and
incredibly lacking. I have developed two programs that simplify and
more accurately prepare budgets. One is used to calculate actual
costs, which takes into consideration all expense items such as locations,
equipment, props, etc., and most importantly accurately calculates labor
costs, based on the production guidelines.
All
of these figures are then automatically transferred into the second program, an accounting
program, that tracks day to day costs and compares them to the
budget. It allows purchase orders to be prepared, checks to be
issued, expenses to be paid, payroll to be disbursed, and accurately
tracks the actual cost of production versus budget (acutals). This
simplifies production, because now there is only one entry into the
accounting software for budget expense items, instead of a manual entry
into a checkbook or into an accounting program, and then a second into the
budgeting software. This greatly improves accuracy and speeds budget
analysis during production so costs are contained and there are no
surprises at the end of the project. I can tell the show runner to
the minute what the costs are and how they compare to the
budget.
This
budgeting sophistication allows me to prepare reports instantaneously
instead of having to wait hours, even days for the data to be inputted
into the budgeting software. No chance of data entry errors or missed
entries, because there is only one entry, and through credit card and bank
account statements I have a system of verification.
Once
the budget has been prepared I
have the ability to prepare a financial and business plan for presentation
to investors. Although there is no assurance of income for a
production, my presentation will inform the potential investor of the
financial return possibilities, tempered with the risk of investment in a motion
picture. These documents are extremely complex and take a great deal
of research to develop, but are often the tipping point in the decision by
the investor. Once
a motion picture is given a green light I work with all departments to
determine staffing and vendor requirements so they fit within the budget
guidelines. I seek out people who
are appropriate for the production genre and budget and secure vendors
that are affordable and comprehend the needs of the production.
|
