What is Entertainment Accounting? – Master of Accounting Degrees

Performers, directors and entertainment studios control huge sums of money, which necessitates hiring the services of an expert with a specialty in entertainment accounting to ensure proper management of their finances. This branch of accounting deals with accounting affairs of the entertainment industry. It is also known as showbiz accounting and covers various tasks, including accounting software setup, bookkeeping, budgeting, planning, and asset administration. Other tasks under this branch include preparation of taxes, tax representation, calculation of profit participation, payroll preparation and investment oversight.

Educational, Certification And Licensing Requirements for an Entertainment Accountant

For one to become an expert in the aforementioned branch of accounting, he must complete at least a bachelor’s degree program in a relevant field, such as accounting and finance. The degree should be awarded by an accredited institution. Additionally, an individual should gain experience to raise his employment chances by working as an intern in an entertainment accounting company. To be sure of accessing such a firm for internship, it is advisable for one to join one of the renowned colleges located in big cities, such as New York and Los Angeles.

Obtaining certification upon successful completion of studies and internship also enhances the employment chances. Typically, the certification involves passing the Uniform CPA Exam, which tests the applicant’s knowledge on four areas, including auditing and attestation, financial accounting and reporting, regulations as well as business environment and concepts. The exam is administered by the American Institute of CPAs.

The licensing follows certification, and it is administered by the Board of Accountancy of the applicant’s respective state. The applicant must also pay a fee, which may vary from one state to another.

Essential Job Skills

Skills needed for an individual to excel as an entertainment accountant can be categorized into basic accounting skills and entertainment industry accounting skills. The basic accounting skills include strategic planning, tax preparation, financial risk management, professional ethics, and auditing standards and requirements. The basic category also covers financial accounting and reporting, tax preparation, and regulations.

The required entertainment industry accounting skills may vary from one firm type to another and may include profit participation payout calculations, TV show production tax preparation and TV show production accounting. On top of the basic and entertainment industry accounting skills, a competent entertainment accountant should possess the ability to handle stressful situations without losing composure and should have enthusiasm and confidence to deal with people with varied personalities. Proper organizational and prioritization skills are also crucial in this career.

Payment And Benefits

As of 2016, each entertainment accountant takes home $49,000 each year on average. On top of their salaries, these professionals are entitled to various benefits which may include opportunities of meeting world celebrities, such as musicians and movie actors, traveling to various parts of the world, and working in a creative environment.

In summary, an entertainment accountant is a key figure in any entertainment firm in need of managing its finances properly. Although becoming such a professional may involve spending significant amount of time in class, it is a worthy profession because of the returns attached to it. Unlike other branches of accounting which may involve working in one location, entertainment accounting helps to break such boredom by allowing an individual to move around and switch locations as needed.