How To Create A Film Budget With Film Budget Template

InsuredThe Policyholder, or You, if you have an insurance policy. Guild Travel AccidentTravel accident coverage with limits required by the guild or union contacts with the producer. Coverage also may be extended to non-union employees, up to $50,000 each. Property damage for rented premises under the general libilty section is limited to major structural damages. Third Party Property Damage is the recommended coverage for the rented premises.

COGSThe Cost of Goods Sold is the cumulative total of direct costs incurred for the goods or services sold, including direct expenses like raw material, direct labour cost and other direct costs. However, it excludes all the indirect expenses incurred by the company. A line producer oversees all logistics and operations for a film, and they’re considered the head of any production. As a key component of any production team, a line producer manages the budget for a film, though they may also manage the day-to-day physical parts of a production. Line producers do their job on location, so they work on only one film at a time. Get a clearer view of your production team’s total expenses by downloading our film budget template. Negative FilmCovers the cost to recreate lost or damaged shots or scenes.

What Does A Line Producer Do?

When it comes to commercials, this will vary depending on if there is a script and the length of the shoot. Though specific expenses can vary by production type —commercial, film, short, TV show, etc.; there is a commonality and universal reasoning behind why budgets are necessary. Net income tells you if a business is profitable over a period of time after all is said and done. Principal PhotographyThe time period in which the production is actually shot.

So what if you’ve established your budget, allocating a balanced portion to above and below-the-line expenses, then find yourself facing unexpected costs? Once you get to the filming stage, your above-the-line costs are set, and below-the-line expenses provide the most realistic means of slashing costs and keeping your budget on track. Simple methods of saving may include cutting out expensive scenes, choosing locations that allow free filming or repurposing costumes and props rather than investing in new ones. All these options reduce the overall film budget by lowering below-the-line expenses, and all can be accomplished at virtually any stage of a project. This painstaking task is usually assigned to the Production Manager or UPM of a production and should be completed before principal photography begins for any project. Above-the-line costs incurred by the cost of goods sold are earnings to the price of raw materials, manufacturing cost, and labor. In contrast, below-the-line costs are interests, operating expenses, and taxes.

What Does An Income Statement Tell You About A Company?

If you’re reading this, you probably understand the importance of developing and keeping track of a film budget throughout. But because budgeting it’s so critical to the filmmaking process, we’ll expand. For example, if you’re shooting a small budget documentary, you’ll need to share similar projects’ budgets and their results. Cleveland-based accounting firm with a national reach and a focus on saving you time and helping you run your business.

The line producer’s job can get a little bit easier if they use our free budget template. Organizing and managing a film crew, both above and below the line, can be tricky but it gets a whole lot easier when you use StudioBinder’s Film Crew Management Software. Film-production budget sheets are divided into two sections by a line. This budgetary line is where crew members are placed either above or below. The terms ‘above the line,’ ‘above the line budget,’ or ‘above the line personnel’ can mean different things in different industries. The terms ‘above the line personnel’ and ‘above the line budget’ also find use in accounting, advertising, and workplace leadership.

What Is An Income Statement?

They include operating expenses such as interests, taxes, and other extraordinary expenses. Most companies use the above-the-line to specify their expenses and earnings that may impact the profit but have no effect on the capital.

After generating the budget, the line producer reviews the budget line by line. When above the line costs budgeting for a project, paying out all of these expenses can be a lot to manage.

Should I Invest In Additional Life Coverage?

Basically, any money that isn’t going to an actor, producer, director or screenwriter can be categorized as a below-the-line expense for accounting purposes. Props/Sets/WardrobeProvides coverage for rented props, sets, scenery, costumes and wardrobe against risk of direct physical loss, damage or destruction during the specified production period. The insurable value should be the total value of your rented props, sets and wardrobe from all vendors.

Towers liability clauses provide coverage for the object being towed, and coverage for any cargo aboard the tow. Terrorism Risk Insurance Act A federal law that has existed since 2002 that provides government backup for insurance claims that arise out of acts of terrorism. It allows you to purchase insurance that will still pay out if you have a claim as a result of a terrorist act. Stop DateThe termination date in an artist’s contract for a specific production. Statement of HealthA questionnaire that must be completed by an artist in order to get coverage for full cast insurance. Rental Cost ReimbursementCovers the potential additional expense to rent similar equipment after a loss. Limited pollution liability coverage for vessels under 100 gross tons.

Income Statement Vs Cash Flow

Let’s look at how to budget for a movie by working off our film budget sheet template and go category by category. Knowing your costs per day after going through a script breakdown, ensures your production plans are financially possible. Post ProductionThe final stage in the production of a film after completion of principal photography. Involves editing, addition of sound/visual effects, dubbing, etc. If you are renting equipment from a rental house, they will ask to be added as Loss Payee, so that the insurance company will pay them directly if equipment rented to you is damaged.

• ProposalA written offer that outlines all insurance coverage requested by the client.
• Above-the-line costs are regular, expected expenses and income during the manufacturing of products and services.
• The distinction originates from the early studio days when the budget top-sheet would literally have a line separating the above-the-line and below-the-line costs.
• The detailed operating expenses which are hidden expenses are written after this line.
• Kidnap & RansomCoverage for payments demanded by kidnappers for the release of an insured.

A non-operating expense is an expense incurred by a business that is unrelated to its core operations. You’ll ensure delivery of the final product, and then you’ll move on to your next job. Having a good grasp on production insurance is an integral part of your qualifications as a line producer.

The service providing companies consider the expenditure that is above the line as an expense at the top of the line. Line Producers are in charge of all the business aspects of the physical production of films. Line Producers are usually recruited onto the production team during the later stages of development. From this schedule the Line Producer can accurately estimate the cost of each day’s shooting, and produce a provisional budget estimating the total amount of funding required. Once the producer and executive producers have raised the required finance, the film can go into pre-production. Coverage does not apply to damage caused by operation of rented or leased motor vehicles, aircraft or watercraft that are covered under props, sets, or wardrobe, or to miscellaneous equipment insurance. This coverage is not included under a Comprehensive General Liability Policy.

Props, sets and wardrobe insurance includes your vendors being provided with certificates of insurance naming them as loss payee in the event of a loss. “Below-the-line” is a term derived from the top sheet of a film budget for motion pictures, television programs, industrial films, independent films, student films and documentaries as well as commercials.

The policy will be excess coverage for any crew members using their own vehicles. A.M. BestAn independent company that provides credit ratings of insurance companies. Their financial-strength ratings measure an insurance company’s ability to pay claims.

Also the first page of an insurance policy that summarizes key information specific to the policy; sometimes called a dec page. ClaimA formal request to the insurance company asking for payment based on the terms of your insurance policy. Animal MortalityProvides indemnification to the production company for the value of an animal that dies during a production or for the net loss due to illness or destruction of an animal used in a production. Values of animals have to be established in advance and current Veterinarian Certificates are required. Animal Extra ExpenseProvides indemnification to the production company for the value of an animal that dies during a production or for the net loss due to illness or destruction of an animal used in a production. In television production, above-the-line expenses include salaries for the positions mentioned above but are budgeted on a weekly or episodic basis for the run of a series. After debating the issue for a while Ken decides not to include the income.

Staying organized and efficient is key to become a successful line producer. You’re going to need to solve a lot of problems, and staying on track with production management software likeJungle Software is a big help. You can find demos of software for Macintosh or Windows to learn the basics. That’s in addition to knowledge about how movies are made and in-depth knowledge of budgeting, scheduling, and technical and physical processes.