Accounting and bookkeeping for broadcast TV stations can be complex due to several unique aspects of the media industry. Quite unlike manufacturing and traditional service corporations, broadcast television entities have their own set of financial metrics, broadcast cash flow being the primary one. But that’s just one of the reasons accounting for broadcast TV stations calls for specialized skills and professional services. It is therefore very important that television accounting be planned and followed through by a specialised CPA.
Impact Of Television Accounting
Professional financial reporting and bookkeeping for broadcast TV stations can mean the difference when it comes time to search for investors or buyers. One of the first things outsiders look at is a measurement you’re likely already familiar with, broadcast cash flow. The name is a bit misleading but it is one of the central components of a television accounting picture. Regulators, prospective buyers, and investors always ask, “What’s your BCF and how does it compare with last year’s numbers?”
You might be able to answer the question, but it’s worth remembering that BCF is measured in many different ways, so it’s imperative to use the same accounting system from period to period in order to make an “apples to apples” comparison and this is where a financial adviser for broadcast TV stations can help.
Not only can an accounting professional keep all the data consistent across a long time spectrum, but an experienced CPA can measure broadcast cash flow in a way that reflects the true, inherent value of your company. That means including every factor that affects BCF and using the same metrics from year to year: the following list highlights those metrics.
- Cash outflow for a TV station include investments and operating costs
- Cash inflow for media organizations typically comes from financing, investing, and operations
- When determining the value of a broadcast property, investors, buyers, and regulators look at comparable properties as well as broadcast cash flow data
- BCF is categorized alongside other “tangible” assets like competition, signal, equipment, and market size
- All tangible and intangible assets must be taken into account when facing the challenge of tax planning for broadcast TV stations
Making Data-Driven Decisions
An experienced financial adviser for broadcast TV stations knows how to present the prior and current measurement of broadcast cash flow, for example, so that buyers can see a realistic picture of how healthy the organization has become since inception. Sometimes a cursory look at the books gives a misleading picture. Fortunately, Our CFO advisory service here at Fusion CPA can help show the true standing and monetary situation for prospective buyers, investors, and government regulators.
Getting Specialized Help: CPAs For Broadcast TV Stations
It’s imperative to keep your books up to date and presented in a format that is both acceptable to the industry and taxation authorities. That’s why television accounting for broadcast TV stations, bookkeeping, quarterly reports, and other key components of a comprehensive accounting system is an integral part of your business responsibilities. A seasoned CPA can take the burden of those requirements off your shoulders and work alongside you to keep everything in order.
Our team here at Fusion CPA offers a full spectrum of accounting services to media companies including accounting for broadcast TV stations, tax planning, and CFO advisory for broadcast TV stations, just to name a few. When you decide to hire a CPA for broadcast TV stations from our firm, you’re taking a step toward optimal financial health that can benefit now and, as a result, shape the business of your future. It’s a fact that when station owners decide to sell their companies, prospective buyers hone in on broadcast cash flow and other detailed measures of a broadcast station’s financial health. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today! Read more about why you should outsource your accounting.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.