Having created a production schedule, a distribution plan, and revenue projections, you should now be in a position to create a worksheet that outlines, on a week by week basis, when funding will be used and when revenues will be received.
Start by taking the items from your budget top sheet and entering them line for line in the spreadsheet.
Then outline, weekly, how the budgeted sums will be spent. For example, Week 1 of you production you may buy the script, pay the production accountant for a week of work to build the production accounting system you’ll use throughout the production, pay the line producers to start contacting the film office in the state you plan to film in, etc. After you know what you are spending Week 1, figure out what you are spending Week 2.
Note that most key cast will require that ALL their money be escrowed before they start work. You can get around this, but generally you should just make sure your cash flow just sets aside their money the first week.
In fact you should “front load” your budget so money is received at least 1 Month before you plan to spend it. This is because cutting it tighter can make it so a very small delay in funding causes a big payroll problem that costs you crew.
You will submit a Cash Flow Summary to funders that specifies how much money need to be received for Preproduction, Production and Post Production and Distribution. It must match up with your weekly cash flow and your budget. They need that document in order to fund you. Might as well write it up before you start submitting your package to people.Tweet
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