By: AJE Recruiting Specialist
Launching a large scale project requires the right financial advisers and proper planning. It’s important that your financial adviser is someone who has chosen to become a CPA. All CPAs are well–versed in financial planning and advising various clients on securing working capital and monitoring expenses. Every industry uses a CPA to ensure their accounting is sound and is operating efficiently. Even industries that have been operating for years need a CPA to ensure financial stability, especially when launching a large–scale project. One of the largest scale projects anyone can undertake is to produce a Hollywood blockbuster, like The Hunger Games.
If you’re not familiar with The Hunger Games, it is the first book in a trilogy written by Suzanne Collins which was made into a movie and released on March 23, 2012. The book follows Katniss Everdeen, a teenage girl from District 12. Panem is made up of 12 districts and the Capitol. Every year the Capitol hosts The Hunger Games in which two teenagers are selected from each district to compete to the death to become champion. The Hunger Games serve as a reminder to the citizens of the 12 districts of the rebellion of their ancestors against the Capitol years earlier. The Hunger Games dominated the box office for weeks and cost $75 million to make.
There are a lot of factors to consider when making a movie like The Hunger Games: paying the talent, paying the crew, distribution costs, editing costs, legal fees, marketing costs, tax implications and so forth. Not to mention managing the investments from producers appropriately. This is why most all movie studios have a CPA on staff to manage their accounts and track expenses. Just as a movie director blocks a scene and brings all aspects of a movie together, so does a CPA with finances.
Chances are if you’re making a movie, you want it to be successful. Who wouldn’t? But as the movie becomes more and more successful, the financials behind that movie typically become more complex. Investors need to be paid their share of the profit, which depending on the agreement, only increases with the movie’s success. There may also be contracts with actors in which they get a percentage of the overall profit as well.
Then there are tax implications to consider. As the movie makes more money, more of it will be taxed. How much of that profit should be reinvested into the studio to mitigate the tax implications? A CPA knows the answer and can manage the majority of your financial concerns. Choosing the right CPA is also important. While all CPAs that are licensed and have passed the CPA Exam are qualified and trusted financial advisers, not all of them may have experience in your industry. Picking a CPA with industry experience will only further ensure your financials are properly managed. Overall, it is vital to choose the right CPA for your industry and situation, especially for large scale projects.
No matter the project you’re working on, a CPA has the experience and skills to ensure your business plan and project have taken into account the full range of financial considerations. Hiring a CPA on contract or on staff is an important step and can give your business and project plan greater respect and assurance to investors. Ultimately, a CPA can make a great addition to your project’s management team and should be seriously considered for larger ventures.