Awards season dominates the opening months of each year. The Golden Globes, British Academy Film Awards, Annual Screen Actors Guild Awards and other major ceremonies all take place in January and February. The season then hits a high point with the Oscars, otherwise known as the Academy Awards, being hosted in Los Angeles in March.
“The focus of the world may be on the US for the Oscars but that’s just one aspect of the film industry. The attention it draws helps promote the industry and its talents but that then filters out across the planet to film and production businesses on much smaller scales,” says Erin Achilleas Walls FCA, director and founder of WardWilliams Creative, an accountancy firm for the creative industries, including film.
“The advertising and marketing machines that are built around this are responsible for billions and billions of pounds globally. Film and other production projects create hundreds of thousands of jobs in the UK each year and a portion of those will be in the finance and accounting sectors.”
The UK has a large talent pool for the film industry and specialist companies using state of the art technology, making the country an enticing prospect for filmmakers. In 2022, UK productions contributed £4.3bn to the economy. “Tax credits also give companies creating films here the ability to receive cash into the business which is very helpful when cash is tight,” Erin adds.
There were fears that streaming would kill such a valuable industry, especially when combined with the pandemic, but streaming platforms themselves are also increasing their investment in UK films. Of the £4.3 billion total spend, £938.8 million went towards streaming productions, up 23% on 2021. “A lot of companies are now looking to make shorter or longer films or series, but it’s all the same companies and people are just looking to reach the audience via the new routes available,” explains Erin.
Films and finance
“Like any changes in the economy, accountants need to be aware and the impact it can have on their clients,” Erin says of her company. “Film, in all its formats, is still considered high risk and many projects do not get funding – some get started but cannot complete. Others complete but cannot sort out distribution channels. Being able to help clients with the various stages and navigate the volatile landscape is a constant challenge, but it’s never dull.”
From writing business plans and funding applications to getting certificates from the British Film Institute for tax credits, there are a huge range of responsibilities for chartered accountants working in – or with clients in – the film sector.
“At the very start of the project we can help deal with the company set up and structure to make sure its fit for purpose,” Erin says. “Depending on the nature of project, this may involve dealing with investor packs, funding, Enterprise Investment Schemes and protection of assets, such as the underlying creative idea and who has the ownership of it.
“Then there is the forecasting and budgets for the actual production. Accountants are used in this process to make sure the project has been costed correctly, or at least that the forecast are as realistic as possible. Accountants will be looking at assets and talent, locations and catering to ensure all areas have been covered and allocated to the budget.”
During the project, chartered accountants will help manage the expenses and report in real time to make sure the production sticks to budget as far as possible and overspends or potential financial issues are flagged. “Most productions will experience last minute changes and disruptions. It’s part of the accountant’s job to manage the financial impact of that and keep the production team aware of issues or options as they crop up,” explains Erin.
At the end of the project, all the final figures need to be drafted, and this will then lead on to possible bonus calculation, distribution issues, identifying and funding short falls and so on. Tax computations – including the work needed for any specific tax reliefs – will also be needed. There may also be distribution to investors and getting the investors their certificates.
New opportunities
There’s a role for chartered accountants during awards ceremonies, too. Big Four firm PwC has been involved with the Oscars since 1935, being drafted in following claims of voting irregularities, which resulted in Bette Davis controversially being denied a nomination for her role in Of Human Bondage. Votes are now hand-counted by the firm at a secret location – a process that PwC says takes approximately 1,700 working hours. The company has also audited The Academy’s financial statements and prepared its taxes since 1935.While the glitz and glamour of the Oscars may feel far removed from everyday life, Erin says that there are routes for chartered accountants and financial professionals looking to specialise in the film industry. Certain firms focus on clients in the sector, such as Erin’s, and film companies and production houses themselves employ chartered accountants.
“There are also specific courses you could go on to get an understanding of film related accounting issues,” she advises. “Another option is to reach out to smaller film projects who will need the help but cannot afford it – such as student and low budget productions.”
However you enter the profession, specialising in film is an exciting and varied way to work as a chartered accountant.