Article: “What Bookkeeping Method Is Used for Entertainment Companies?

Date: 8^th February 2019

Source: Chron

Summary

The article discusses the bookkeeping methods in the entertainment companies and asserts how they should create an efficient and reliable way of bookkeeping thus ensuring that they function within their production budget and realize maximum profits. Among the most significant issues raised in the article is the fact that the entertainment industry lacks a specific bookkeeping method. At the beginning of the article, the author affirms that the Market Watch website found in the “Wall Street Journal” shows that Americans use an excess of $705 billion for purposes of entertainment on an annual basis. The figure indicates that the entertainment industry generates much revenue which should be cautiously managed through the relevant bookkeeping methods.

The article has an accounting effect on the entertainment industry in that it highlights essential aspects and practices of bookkeeping. Additionally, the article is significant to the entertainment industry mainly because of how it describes the different tiers of bookkeeping. The information presented in the article regarding the two levels of bookkeeping is relevant to the entertainment industry especially for companies seeking to adopt the most effective bookkeeping practices. The article ends with considerations which indicate that a company’s bookkeeping method might differ depending on the form of entertainment that they are affiliated with. The assertion is essential to entertainment companies because they have increased levels of bookkeeping and accounting to work on as compared to other enterprises.  The information presented in the article is most likely to influence bookkeeping practices of most companies in the entertainment industry thus ensuring that they improve their businesses.

References

Renee, Michelle. (n.d.). What Bookkeeping Method Is Used for Entertainment Companies? Small Business – Chron.com. Retrieved from http://smallbusiness.chron.com/bookkeeping-method-used-entertainment-companies-35104.html