In the world of TV and film production, keeping a project on schedule and within budget is critical. However, one area that often goes overlooked in the industry is accounts payable (AP) processing. When handled manually, AP can cause serious disruptions that end up costing production companies far more than they realize. From increased errors to fraud risks and delayed payments, these hidden costs can derail even the most meticulously planned production.
Unique Challenges in TV and Film Production
- High Volume of Vendors and Payments: Productions often involve coordinating with a wide range of vendors, from set designers and costume departments to equipment rental companies and freelance contractors. Each of these partners needs to be paid promptly, often across multiple locations and jurisdictions, which adds complexity to AP management.
- Frequent Changes and Tight Timelines: Film production schedules can change frequently, sometimes daily. A delayed payment or an invoice stuck in approval can lead to work stoppages, equipment shortages, or critical crew members being unavailable—all of which cause delays in production.
- Lack of Visibility and Control: With manual AP processes, it becomes increasingly difficult for production teams to maintain visibility into outstanding payments, manage their budgets accurately, or avoid duplicate payments. This can lead to significant budget overruns that disrupt a film's financial management.
The Hidden Costs of Manual AP Processes
- Increased Errors: Manual entry of invoices, checks, and other payments increases the likelihood of human error. For production companies juggling hundreds of invoices per project, even a small mistake can cause major disruptions. Incorrect payments, missed due dates, and data entry mistakes can stall production or damage relationships with vendors.
- Higher Risk of Fraud: The manual handling of AP processes leaves production companies vulnerable to fraud. Whether it's a result of falsified invoices, unauthorized payments, or duplicate billing, manual processes lack the sophisticated fraud detection capabilities that automated systems provide.
- Delayed Payments: Delayed payments can halt production. Whether it’s paying for key services, essential equipment, or freelance workers, delays in the AP process can cause significant bottlenecks that directly impact filming schedules and cause cost overruns. Late fees or rushed payments only add to the overall budget strain.
- Opportunity Cost: The more time the production accounting team spends on manual data entry and chasing down approvals, the less time they can devote to higher-value work, such as financial analysis or managing overall production costs. This leads to inefficiencies that cost time and money.
How AP Automation SOLVES These Issues
For production companies, AP automation offers a transformative solution that addresses these challenges head-on. With Scrypt AI, production teams can automate the entire accounts payable process, from invoice capture and processing to payment approvals and fraud detection.
- Reduce Errors and Fraud Risk: Scrypt AI’s intelligent automation minimizes human error and detects fraudulent transactions early, protecting production budgets from costly mistakes.
- Streamlined Payments: Automated AP processes ensure that vendors, freelancers, and crew members are paid on time, keeping production schedules on track and reducing the risk of delays.
- Greater Visibility and Control: With real-time visibility into outstanding invoices, approvals, and payments, production accountants can manage budgets more effectively, preventing overspending and ensuring smooth operations.
- Focus on Creativity: By eliminating the tedious manual work associated with AP, production teams can focus more on creative tasks and less on administrative burdens, making the production process smoother and more efficient.
"With Scrypt AI, we doubled the volume of invoices processed without increasing headcount, and human errors dropped by nearly 50%," said Elsa from Cinedigm. "This has allowed us to stay on budget and keep our projects on schedule."
The Bottom Line
The costs associated with manual AP processes in TV and film production go far beyond just the inconvenience of delayed payments. Errors, fraud risks, and production delays can cripple a project’s budget and timeline. By adopting AP automation with Scrypt AI, production companies can streamline their financial operations, reduce errors, and focus on delivering top-tier creative content. AP automation for production companies isn’t just a technological upgrade—it’s an investment in the future success of every project.
If you’re ready to see how Scrypt AI can help reduce the hidden costs of manual AP processes, schedule a demo today!
