Film Accounting Glossary
Double-entry bookkeeping
What is double-entry bookkeeping?
Double-entry bookkeeping is the principle that every transaction is recorded twice, as a debit in one account and an equal credit in another, so the books always balance.
It is why a production's trial balance can be proved rather than trusted, and why an error in coding shows up as a mismatch instead of vanishing. Every film accounting package is built on it, whether or not the user ever sees the journal.
Example
A $12,000 vehicle invoice posts as a $12,000 debit to the transportation account and a $12,000 credit to accounts payable. When the check clears, AP is debited and cash credited. Miscode one side and the trial balance refuses to balance, which is the point.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Underneath every film accounting package, whether or not the user ever opens a journal.
Common mistake
Assuming a balanced trial balance means correct coding. Double entry proves the arithmetic, not the judgment: a cost booked to the wrong department balances perfectly.
Related questions
- How does double-entry bookkeeping work on a production?
- Every transaction posts twice, as a debit to one account and an equal credit to another, so the ledger always balances and errors surface as a mismatch.
- Does a balanced ledger mean the cost report is right?
- No. It means nothing was lost. Costs can still be coded to the wrong accounts, which balances the books and misstates every department's variance.