By Russell Rich
If you’re a media company or a creative agency, making your specialist media accountant an integral part of your business can really add up.
People who choose media as a career are often more focused on creativity than on the boring old business of making sure that their accounts and paperwork are tip top. And that’s as it should be. All the more reason why people in these industries need to ensure they have the best possible professional advice.
The role of an accountant in the media world is to provide a cool head while all about him is losing theirs. An accountant’s responsibility is to ensure that accurate, transparent accounting is generated for the management of the company. Client companies need to understand precisely where their income is derived from, what the attributable expenses are, what tax is payable and what the available profit to draw is. In addition to the critical number crunching, a specialist media accountant will work with clients in all and any areas that they identify to help them achieve their business objectives.
Many media companies need advice on how to streamline their businesses to enable them to improve their profit extraction. A specialist media accountant will help set up a user-friendly accounting system to provide an accurate picture of finances. They might also suggest a restructuring of the business for the utmost tax efficiency. It’s even possible that the media company’s account managers can be helped through the designing of project reports and job bags, thereby keeping a better track of costs and linking back to accounting records.
In the thorny areas of VAT, cash forecasting, payroll and corporate tax, the right advice can make the difference between success and disaster - making savings or over-paying. And setting up monthly management reports, including showing management cash flow, is very much a tool that aids the running and understanding of a business.
A specialist media accountant will also be able to act as a quasi financial director and then, when the business grows, advise on the best way to structure an internal accounts department and even help to recruit and train the best people for the job.
To ensure that your accounting is accurate and compliant, and the correct amount of tax is paid, a specialist is vital. But the business owner is, and always, remains the creative force. Clarity on these respective roles leads to an appreciation of each other’s skills and, for an accountant, nothing is better than watching clients achieve the success they deserve.
If you would like more information on how we could help your business in the media sector, please call (020 7490 7766) or email me.
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