Film Accounting Glossary
Cash position
What is cash position?
Also called cash on hand.
Cash position is how much money the production actually has available right now, after clearing checks, outstanding commitments, and pending payroll.
It is deliberately distinct from the cost report, which is about cost incurred rather than cash on hand. Productions run a weekly cash position alongside the cost report so the line producer knows whether the next funding draw needs to be called early.
Example
The cost report says $3.2M of $8.4M spent. The cash position says the account holds $410,000, Thursday's payroll is $290,000, and $180,000 of checks have not cleared. The next drawdown has to be called today.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
A weekly one-pager for the producer and line producer, deliberately kept separate from the cost report.
Common mistake
Reading the cost report as a cash statement. Cost incurred and cash available are different questions, and only one of them tells you whether Thursday's payroll clears.
Related questions
- How is cash position different from the cost report?
- The cost report measures cost incurred against budget. Cash position measures money actually available after uncleared checks and imminent payroll.
- How often should a production check its cash position?
- Weekly at minimum, alongside the cost report, so a drawdown can be requested with enough notice to satisfy the funder's conditions.