Lights, Camera... Accounting
Film and television freelancers didn’t sign up to sit behind a desk, yet keeping financial records is critical to being in business. Carolyn Brooke finds out how 1st assistant director Seumas Cooney keeps on top of his books.
Like many freelancers, 1st AD Seumas Cooney was clueless about accounts when he started in the industry 12 years ago. It didn’t take him too long though to realise the importance of bookkeeping and he eventually found a system that worked. “I think back then I didn’t even have a computer. I’d work everything out through my old-fashioned invoice book, at the end of the financial year,” Seumas says. “It seems like a universe ago.”
Signing up to GST after four years forced him to keep bi-monthly income and expense records which he says ended up being a saving grace. “What made it easier for me was when I became GST registered as you have to be a lot more detailed about your expenditure and income. In the long run it actually saves me time and work,” Seumas says. “All I have to do is send it to my accountant at the end of the year.”
He considers the three to four hours he spends on GST every two months a ‘necessary evil’. Of course he’d rather spend the time elsewhere but he accepts it comes as part of the job. “You have to do it and you have to stay on top of it, if not you’re in trouble. You hear nightmare stories on-set where people do GST returns every six months and then basically wait for the accountant to tell them how bad it is.”
GST returns are generally due on the 28th of the following month. He says having three to four weeks to prepare the paperwork is handy and he’ll fit it in over a couple of nights if he’s busy. “I think it’s tougher for people who have a lot of gear and equipment.”
Seumas uses an excel spreadsheet, which a friend helped to set up when he first registered for GST. He enters all his business expenses into the spreadsheet and cross checks against banks statements to make sure he has not missed anything. Paid invoices, which are also created in an excel template, are entered too and once again checked against the bank account for withholding tax deductions.
“Once I’ve done my GST it’s all there, it’s done and ready to go,” he says. “I know some people still do the old box of receipts to the accountant. I still have a box of receipts but I’m that middle person now. It costs money that I’d rather keep.”
“You want to be in control of your own finances and know where you’re at. It’s actually a plus-plus because it makes you more involved, part of your own finances and more aware.”
A quick phone call or email to his accountant or IRD sorts out queries as they come up. “Like when I sold my vehicle,” he says.
To avoid nasty surprises and to ensure he is covered, he keeps a separate bank account for GST and ACC levies. He also opts for a 25 percent withholding tax rate over 20 percent which usually results in a tax refund. “Personally I like it because it’s a little bit of savings for something or just to pay a bill,” he says. “It’s definitely nice going into winter to get a cheque.”
