Film Accounting Glossary
Forecast
What is a forecast?
A forecast is a forward-looking estimate of cost, cash, or revenue, as opposed to a record of what has happened.
In production accounting the working forecast is the estimate to complete inside the weekly cost report; at the company level it is the slate cash flow. A forecast is only useful if it is revised on new information, which is why refusing to move a number is a warning sign rather than discipline.
Example
At week two the forecast says on budget. At week four, two weather days and a cast illness mean it says $290,000 over. Refusing to move the number so the report stays clean is not discipline, it is how a producer finds out too late to act.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
The estimate to complete inside the weekly cost report at production level, and the slate cash flow at company level.
Common mistake
Holding a number steady to keep the report looking clean. A forecast that does not move on new information is not discipline, it is a delayed problem.
Related questions
- What is the working forecast on a production?
- The estimate to complete inside the weekly cost report, plus the cash flow forecast that says when the money is needed.
- How often should a production forecast be revised?
- Weekly as standard, and immediately on any material change such as a schedule slip, a recast, or a weather loss.