Tracking film production costs is essential for staying on budget, managing cash flow, and reporting to investors and stakeholders. But how do you track film production costs effectively and accurately? In this article, we'll cover some of the best practices and tools for tracking film production costs, from pre-production to post-production.
Pre-production costs include everything that happens before the cameras start rolling, such as script development, location scouting, casting, hiring crew, securing permits, and creating a shooting schedule. To track these costs, you need a detailed breakdown of all the pre-production expenses and a realistic estimate of how long each task will take. You can use software tools like Movie Magic Budgeting or Gorilla Budgeting to create and manage your pre-production budget, or use spreadsheets and templates to track your costs manually.
The best way to track costs is with a budgeting/cost tracking app like Saturation.io that modernizes cost tracking giving you real-time automated expense tracking for your production budget.
Production costs are the most variable and unpredictable part of film production, as they depend on many factors such as weather, equipment, actors, locations, and contingencies. Production costs include everything that happens during the shooting phase, such as camera, sound, lighting, props, wardrobe, catering, transportation, and insurance. To track these costs, you need a daily production report (DPR) that records all the activities, expenses, and issues that occur on set. You can use software tools like StudioBinder or Celtx to generate and share your DPRs, or use paper forms and checklists to track your costs manually.
In my experience the key is simply to allow each department to begin the production process and have them come back with a more realistic idea at 20% of the shooting plan. That is the perfect time to get creative and try to adjust. Once you reach 75% of the shooting you come back and cut the fat.
Post-production costs include everything that happens after the shooting phase, such as editing, sound design, music, visual effects, color grading, and distribution. Post-production costs can vary widely depending on the complexity and quality of your film, and they can often exceed the production costs. To track these costs, you need a post-production budget that outlines all the post-production tasks, deliverables, and deadlines. You can use software tools like Movie Magic Scheduling or Gorilla Scheduling to create and manage your post-production schedule and budget, or use spreadsheets and templates to track your costs manually.
Overhead costs are the indirect and fixed costs that are not directly related to the film production, but are necessary for running your business or project. Overhead costs include things like rent, utilities, office supplies, legal fees, accounting fees, marketing fees, and taxes. To track these costs, you need an overhead budget that allocates a percentage of your total budget to cover your overhead expenses. You can use software tools like QuickBooks or Wave to track and manage your overhead costs, or use spreadsheets and templates to track your costs manually.
Contingency costs are the unexpected and unplanned costs that arise during the film production, such as reshoots, delays, damages, lawsuits, or changes in scope. Contingency costs are hard to predict and avoid, but they can have a significant impact on your budget and cash flow. To track these costs, you need a contingency fund that sets aside a portion of your total budget to cover any unforeseen expenses. You can use software tools like RiskyProject or @RISK to estimate and manage your contingency costs, or use spreadsheets and templates to track your costs manually.
Cost reporting is the process of communicating and documenting your film production costs to your investors, stakeholders, and yourself. Cost reporting helps you monitor your budget performance, identify and resolve any issues, and justify any changes or requests. To report your costs, you need a cost report that summarizes and analyzes your actual costs versus your estimated costs, and explains any variances or deviations. You can use software tools like Wrapbook or Showbiz Budgeting to generate and share your cost reports, or use spreadsheets and templates to create your own cost reports.