ACADEMY
BUSINESS SENSE
ASSET ADVICE
Running a filmmaking business can be tough. Here are some ways to stay cash-flow savvy
WORDS ADAM DUCKWORTH
W ith escalating inflation and interest rates in this post-pandemic world, all small- and medium-sized businesses need to take a close look at their finances to keep ahead of the game. Marketing spend is often the first thing cut by many clients in tough times – that’s usually where the budget comes from to go into making commercial films. So it pays to be extra savvy when running your own company. Even if your filmmaking operation is booming, it pays to look at expenditure and cash flow – often the killer of small enterprises. Every business needs proper insurance – not only to operate legally, but to offer protection if the worst does happen. If you fly drones commercially, public liability and speciality insurance is one area you can’t cut back. But it pays to look around, rather than sticking with the same provider. Of course, the same holds true for accidental damage or theft to business property, as well as some sort of income protection. Remember, it’s not just about the cost of the premium, but how good the insurance is at paying out if things go wrong. While ditching your accountant and going with an online software
“Even if your filmmaking operation is booming, it pays to look at expenditure and cash flow”
mind that comes with full warranty. Splurging on new means you will pay less tax – and have the opportunity to claim back sales tax. But you will be faced with large depreciation. The rental option In the short term, renting can be ideal. You know that kit will be ready for use, especially if you hire from a reputable company like Hireacamera. If you just want something out of the ordinary for a film – like anamorphic lenses or a pricey cinema camera – renting is a good option. Fast, reliable courier services mean you don’t need to live close to a rental house. And if you require anything for a longer period, rather than just a few days, rental houses often do deals.
package can potentially save money in fees, it can also be time- consuming. Get something wrong, and the taxman won’t cut you any slack. It’s often best to stick to professionals. And a good accountant will always be on hand to advise on expenditure, too. Whether you are registered for VAT and how you depreciate capital expenditure items could make a massive difference to the way you operate – and you do need professional help. What pretty much all advisers will say is that splashing out lots of cash on the latest and greatest brand-new kit might not be ideal. As filmmakers, we all lust after the freshest cameras, lenses and lights. Buying new means you own it, ready for any shoot, with peace of
WISE CHOICES Buying used camera kit, or leasing if you need new, could be ideal
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