hot stuff: week five

on the table for this week:
budgeting
calculating expenses

networking



BUDGETING CLASS NOTES

  • budgeting overview
    • how much will your production cost service by service
    • expenses vs income
      • tangible income: money you HAVE
      • projected income: money you WILL have
        • ie. i make this amount this much each month, then ongoing i can keep paying for this film
  • in-kind cost
    • access to a service/workspace without direct cost
    • include these intangible costs to show that if you needed to pay for them at some point, you’d know the financial cost of that.
      • frames a real world sense of the different parts of a project
  • contingency
    • take 10-15% of the remaining expenses to cover additional costs
  • work with full dollars instead of cents - personally i would just round up on all expenses


VOCABULARY

Types of Expenses


EXPENSES: the thing that directly costs you money. This includes services, contracted labour, equipment, and materials.

Item: the short name for what your expense item is

Cost: per item/unit  or  per item/per hour (labour)

Quantity: how many

GST: Government Sales Tax in BC is 5%

PST: Provincial Sales Tax, 7% of item cost

Shipping Cost: can often be estimated on ordering websites, or ask a sales rep directly.

Subtotal: adding up the costs across the category row


Types of Income

INCOME: the money you have to pay for the planned (also called “projected”) expenses. Sometimes called “Revenue”

Savings: current money available

Planned: money that is planned for arriving, and is reasonable to expect it. This might be a job paycheck, a gift, scholarship

Projected, or Unsecured: grant money being applied for, requests that aren’t yet determined. This shows that you’re trying to fund the project. If you are not confident about the results of those funds coming through, you can put that amount in another column just to show it, but not count it as income.
  • Grant: money that is given without a need to pay it back. It counts as income.
  • Loan: borrowed money that will be repaid, possibly with interest

Direct cost: what you must pay for, and is a financial expense. This is listed in dollars (North America) and can either include the cents, or round up/down to just show the dollar amount. Many funding agencies prefer the latter method because it’s simpler.


CALCULATING UTILITIES

  • how much space does your home office take up in your home studio
    • measure the square footage of the room + the dedicated workspace in comaprison
      • put it in a percentage format
    • take the average of your utilities bill and find the percentage of it that is just for your work station