Backdrop - Expense management for Film, TV, Music & Event productions

@busmark_w_nika Our founding team has worked on productions. In fact, my co-founder @caitlinjshort used to carry around zip-lock bags full of petty cash and receipts around, back when she was a PA on set :)

@caitlinjshort @busmark_w_nika For sure, last thing anyone wants to do is carry a ton of cash and type out hundreds of receipts every week 😣

@akanksha_backdrop @busmark_w_nika absolutely!

@akanksha_backdrop I keep seeing outsiders posting in our accounting groups their new payment solution service (that almost none of us are seeking) and asking us for feedback since we are the experts. I don't see any real feedback from anyone on the finance side so... What problem does this solve? Most productions in the USA no longer require using cash since covid. Why would we use this instead of Cashet? Every cost/spend requires approvals (studio policy) - How does this save us time in the approval process as stated? How does this solve the problem with each studio in Hollywood having their own policies and procedures for the accounting dept to follow? How does this solve the problem with the locations department turning in a/multiple incomplete check requests after 9pm that they need by 8am the next morning? How does this solve the problem with crew members submitting prepaid fuel receipts and other purchases that are not allowed? How does this solve the problem with crew members turning in their receipts in a timely manner as stated in their start work? How does this solve the problem with cast assistants turning in their receipts prior to the end of production? How does this solve the problem with having to asset items on a wardrobe vendors receipt that doesn't state what the item is on the receipt? Example - w47nis b8tsl udf01 $799.99 (must be a women's blouse!?) How does this solve the problem with crew members providing descriptions for what they purchased? Most studios in the USA require more detail than just 'crafty', 'expendables', 'set items', 'props' or 'male cast clothing options' like a lot of dept's love to provide us. How does this solve the problem with the rampant fraud that occurs in most departments? How does this solve the problem with dept heads not knowing how to budget? How does this solve the problem with dept heads actually using a po? How does this solve the problem with departments submitting a po PRIOR to making a purchase/obtaining an invoice? How does this solve the problem with crew members actually understanding the purpose of a po and how to use them? How does this solve the problem with crew members actually understanding how the paperwork process works and that we (accounting) have rules, procedures and laws to follow? How does this solve the problem with the studio-required paperwork for crew rentals such as competitive bids and related party disclosures? All of which usually needs to be approved by the studio (slow) prior to being rented/used or paid. How does this solve the problem with crew members not knowing how to fill out and even submit their own time card? How does this solve the problem of having to deal with the same issues with the same people on every show? "I didn't have to do this on my last show"... How does this solve the problem known as payroll? How does this solve the problem with receiving payroll edits from the paymaster (every week) on Thursday afternoon that has over 10k $.01 line errors in the fringe accounts on each report, all of which need to be corrected manually prior to being released in the short amount of time we have to complete it before the crew starts banging down our doors reciting the union contracts they all know so well? How does this solve the problem with a state such as Georgia that now requires film production accounting staff in the state applying for the rebate/tax incentive to do most of the states work for them as part of the rebate/tax incentive process? We don't get paid any extra for this... How does this solve the problem with film production accounting staffs being treated as part of the crew like everyone else? Most people in this industry fail to understand that the accounting department is in fact part of the crew like everyone else is. I could go on...

@moviemoney Thank you for sharing your thoughts! We've made our product with input from accountants like you, so we know it's important to get it right. Happy to get on a call to go over these questions in more depth and even show you the product in action, but I will attempt to address your questions here as well (except for those concerning payroll/timecard functionalities, as they are not within our current offering): Question: What problem does this solve? Most productions in the USA no longer require using cash since covid. Answer: We work with productions all over the world, and a lot of them still use cash. Even many independent film and event productions in the US, that we have worked with, stick with cash because they either don't trust giving their crew cards or it takes too long to get them cards (which is a problem with Cashet and most banks). Besides addressing cash handling and card issuance delays, here are some additional challenges we tackle: 1) Manual entry of 100s of receipts weekly: This consumes days of production time every week, increases the risk of errors, and lacks an efficient way to reference purchases during audits. 2) Delays in getting receipts and purchase data, leading to budget overruns 3) Delays in vendor payments, partly due to the cumbersome process of matching invoices to Purchase Orders and lengthy approval procedures. 4) Tracking returns and managing inventory is predominantly a manual process. Our research indicates that studio productions have millions of dollars worth of inventory that remains unmonetized due to manual handling. 5) Lack of real-time visibility into cash-flow Question: Why would we use this instead of Cashet? Answer: While Cashet is a great platform, feedback from productions has highlighted several limitations: 1) Manual and has sub-par user experience: Their platform, especially their mobile offering, lacks functionality, requiring crew members to manually enter receipt and item details along with accounting codes. In contrast, our platform offers a modern, streamlined experience. Crew members can simply snap a photo, and we automatically extract all relevant details such as merchant, total, tax, and items. 2) Cashet only tracks Cashet card expenses: We can track Backdrop cards, non-Backdrop cards, and even cash transactions. We also offer the flexibility to issue virtual or physical Backdrop cards or link non-Backdrop cards. 3) You have to pay separately for a Purchase Order software: Cashet doesn’t do POs but you can create and approve POs and pay vendors on Backdrop via ACH, wire, or check. 4) They don’t track inventory and returns: We track inventory, carbon emissions, and returns making it easier for departments like wardrobe who have frequent returns. 5) Limited global reach: While Cashet's services are mostly limited to the US and Canada, Backdrop offers global coverage, catering to productions worldwide. 6) Slow Cashet card issuance: We can issue them instantly, ensuring no delays for the crew 7) Cashet has limited reporting and no budget tracking: Our platform provides customizable reports for accounting, inventory, and tax credits. Plus, we have strong budget and metrics tools that everyone from Finance and Accounting teams to Producers and Department Heads can use. This helps lighten the load on accounting teams Question: Every cost/spend requires approvals (studio policy) - How does this save us time in the approval process as stated? Answer: Our system accelerates the approval process in several ways: 1) Faster receipt collection and auto-reconciliation: We send notifications as soon as the card is swiped, so receipts aren’t misplaced or forgotten.. We also parse receipt details and itemize them, eliminating manual entry and ensuring accuracy. And we auto- match receipts with corresponding bank transactions, making reconciliation faster. 2) Modern p-card envelope management on both web and mobile: Envelopes for approvals can be made in seconds on mobile or web. Approval requests are sent via push notifications and emails, so approvers can respond instantly. 3) Live approval tracking with approver notes: Approvers can leave comments, and everyone can see approval status and history, making decisions faster. 4) Custom approval chains and admin review: We let you set up approval workflows that fit your needs. Administrators can check envelopes before they're sent for approval, reducing back and forth. Question: How does this solve the problem with each studio in Hollywood having their own policies and procedures for the accounting dept to follow? Answer: Our product offers customization and flexibility to adapt to these varied policies. Unlike larger entertainment companies, we can tailor our product to meet your specific requirements, rather than adopting a one-size-fits-all approach. Question: How does this solve the problem with the locations department turning in a/multiple incomplete check requests after 9pm that they need by 8am the next morning? Answer: Approvals and payments can happen as fast as you need them to. And we can also track approvals and do reimbursements for payments that happen outside of our system, in case of these urgent requests. Question: How does this solve the problem with crew members submitting prepaid fuel receipts and other purchases that are not allowed? Answer: We can integrate controls into the product to prevent the submission of such receipts, aligning with your policy. You can also enable approvals, which will prevent such receipts from being submitted. Question: How does this solve the problem with crew members turning in their receipts in a timely manner as stated in their start work? How does this solve the problem with cast assistants turning in their receipts prior to the end of production? Answer: Backdrop allows unlimited users, so you can add all your crew members/assistants to our platform. Anyone can submit receipts on our mobile app or web platform and we make it easier to do so by notifying users at the time of purchase, so receipts are added on a timely basis. Question: How does this solve the problem with having to asset items on a wardrobe vendors receipt that doesn't state what the item is on the receipt? Example - w47nis b8tsl udf01 $799.99 (must be a women's blouse!?) Answer: We require crew members to provide item descriptions alongside the receipt, which helps clarify unclear items. For online purchases, we can retrieve descriptions directly from merchants like Amazon. Additionally, our AI models can interpret vague descriptions like "w47nis b8tsl udf01" and provide accurate descriptions based on past data. This multi-pronged approach ensures accurate item identification and streamlines the asset tracking process. Question: How does this solve the problem with crew members providing descriptions for what they purchased? Most studios in the USA require more detail than just 'crafty', 'expendables', 'set items', 'props' or 'male cast clothing options' like a lot of dept's love to provide us. Answer: We can enforce minimum character limits for descriptions, ensuring more detailed information is provided. Although we currently don't have this feature, we can potentially check if descriptions make sense on our end in the future. After expenses are submitted, admins can edit them or send them back to the crew with comments for clarification. This allows the crew to revise and provide more accurate descriptions as needed. (Rest of the response in my second comment)

@anuj_kejriwal Thank you Anuj! We always appreciate your support and are always excited to work with you.

@aahan_sawhney1 Thank you!

@akanksha_backdrop @aahan_sawhney1 thank you!

@taylor_hayes2 Thank you 🙏

@basile_senesi1 Really appreciate you supporting us from Day 1 🧡

@akanksha_singh @dr_archana_singh Thank you :)

@akeem_williams Thank you 😊 We love what you guys are doing as well.

@dbirulia thank you, we agree!

@swati_kumar2 Thank you 🙏