Case Study: Building and Managing Accounting Infrastructure for a Media Production Company

A growing production company managing multiple projects across film and television was struggling with financial management. Each project operated as its own LLC, with separate bank accounts, payroll runs, vendor contracts, and investor funding.

The company needed to:

• Create a scalable and standardized accounting system
• Maintain financial separation between projects and parent company
• Ensure clean and timely monthly reporting for investors and stakeholders
• Prepare for year-end audits, tax filings, and investor reporting
  They partnered with Alajian Group to build and manage a professional accounting infrastructure that could handle the complexity of the entertainment industry.

Alajian Group’s Role

Infrastructure Setup

Entity Structure & Systems Planning

Alajian Group began by assessing the company’s structure and growth goals. Given the need to isolate costs by production, they recommended a “parent + project LLC” structure, with each project tracked as a separate entity in the accounting system.

Systems Implemented:

• QuickBooks Online Advanced for centralized accounting with multi-entity support
• Bill.com for vendor payments and approval workflows
• Gusto or Wrapbook for cast/crew payroll integration
• Google Drive or Dropbox for centralized receipt/document storage
• Production tracking tools (HotBudget or Movie Magic) synced to actuals
• Clockify or Harvest for time tracking and internal budgeting (if needed)

Project-Based Accounting Design

• Set up classes or projects within QuickBooks to track spend per production
• Designed custom chart of accounts specific to production:
• Above-the-line and below-the-line categories
• Location and equipment rentals
• Travel, lodging, per diems
• Distribution & legal costs
• Created vendor categories and tagging to separate recurring vendors (e.g. gear houses, editors) per project

Month-to-Month Accounting Management

Alajian Group provides ongoing monthly support that keeps the production company compliant, cash-aware, and investor-ready.
Monthly Services Include:

Bank & Credit Card Reconciliations

• For each entity: parent and production LLCs
• Tie to funding draws, petty cash usage, and expense reports

Accounts Payable Management (via Bill.com)

• Vendors submit invoices to a centralized email
• AP is coded, approved, and paid through automated workflows
• All payments are tracked back to the right project

Cast & Crew Payroll Oversight

• Alajian coordinates with Gusto or Wrapbook to ensure:
• Timecards are submitted
• Union/non-union rates are applied
• Tax withholdings and filings are accurate
• Monthly payroll costs reconciled against budget

Monthly Financial Statements

• Profit & Loss by production/project
• Balance sheet by entity
• Cash flow forecasting (especially important for active productions)
• Budget vs. actuals for each project

Grant & Investor Reporting

• Provide funding partners with cost reports
• Prepare spending certifications and reconcile to funding agreements
• Assist with reporting requirements for public or grant-funded productions

Sales Tax and 1099 Compliance

• Ensure sales/use tax filings are made if applicable (e.g., equipment rentals)
• File 1099s for vendors, contractors, and service providers each January

Audit and Year-End Support

• Prepare PBC (Prepared By Client) schedules for audit or tax review
• Close out production entities with clean final reports
• Assist legal and finance teams with cost certification packages required for film tax credits (e.g. California, Georgia, or New York incentives)

Results

Since partnering with Alajian Group, the production company has experienced:

• Improved cash control across projects
• Timely and accurate monthly reporting for investors and partners
• Full compliance with payroll, taxes, and union requirements
• The ability to scale up and down depending on the number of productions
• A smoother year-end audit and tax process, reducing last-minute surprises

Conclusion

Producing great content is complicated—managing the finances behind it doesn’t have to be.
Alajian Group built and maintains an accounting infrastructure tailored to the unique needs of production companies. From payroll and project tracking to tax filings and investor reporting, their expertise ensures that creative teams can focus on the work in front of the camera—while everything behind the scenes runs like a well-oiled machine.