Benefits of Using a P-Card For Your Commercial Production
P-Cards may seem like just another nice-to-have feature when handling back-office production business affairs, but as we’ll show in this blog, it carries many cost benefits for advertisers and producers when developing a commercial.
Think of P-Cards as credit cards for your productions– they seamlessly allow the electronic purchase of goods and services while on set. Using a P-Card for your next commercial can benefit your production in several ways, such as:
Saving costs on procure-to-pay process
Faster and more efficiency purchasing
Greater control and oversight
Better vendor relationships
In this blog, we will discuss what P-Cards are and how they can benefit advertisers and producers on their next commercial production.
What is P-Card?
P-cards are a type of commercial card that allows your production to electronically purchase goods and services. P-Cards must be filled in full at the beginning of the month to enable it for use.
P-cards will go by a number of names - procurement cards, purchase cards or payment cards. As we dive into P-Cards, we’ll demonstrate the cost efficiencies P-Cards can provide for your next commercial production.
Benefits of Having a P-Card for Advertisers and Producers
Producers and advertisers primarily use P-Cards for their commercials due to the sheer flexibility and convenience it provides them in terms of quick access to necessary production funds. To be more specific, P-Cards provide a variety of benefits, including:
Saving costs on procure-to-pay process
The traditional route of procure-to-pay process can actually be the most expensive part when making smaller purchases.
The purchase process consists of requesting approval for purchase, purchase order and invoice. This process cost is the same no matter the total value size of purchase. So while the traditional route may seem like a great payoff for a bigger purchase, for example, over $1,000, it would not be cost effective for a small purchase of $10.
P-Cards eliminate this process completely, reducing overall costs for your production.
Faster and more efficiency purchasing
Purchase orders are a great way to monitor and track your commercial production purchases. However, small purchase orders can quickly pile up for your production accountant, making it inefficient for your administrative costs.
With P-Cards, you can eliminate the pile of purchase orders as its purchase receipts are tracked electronically, making it easier to track and monitor for your accounting team.
Overall, P-Cards make the purchasing process quick and simple for both parties.
Greater control and oversight
P-Cards will also show to be a lifesaver for your production accounting team for a variety of reasons:
Detailed transaction records: P-Cards provide detailed records of every transaction made, including the date, amount, vendor, and type of expense. This granularity helps in categorizing expenses accurately and aids in meticulous record-keeping.
Real-time monitoring: Many P-Card providers offer real-time monitoring tools, allowing producers to track expenses as they occur. This immediate visibility is crucial for managing budgets effectively and avoiding overspending.
Consolidated statements: P-Cards consolidate all transactions into a single statement, making it easier to review and reconcile expenses. This consolidation simplifies the auditing process and ensures accuracy in financial reporting.
Customizable reports: P-Card systems often allow users to generate customizable reports, enabling producers to analyze spending patterns, identify cost-saving opportunities, and make informed financial decisions.
Budget compliance: By setting spending limits on P-Cards, producers can ensure that expenditures remain within budget. The ability to track expenses against budget in real-time helps in maintaining financial discipline and avoiding budget overruns.
Reduced paperwork: P-Cards eliminate the need for extensive paperwork such as invoices, checks, and reimbursement forms, reducing administrative overhead and the risk of errors in manual entry.
Faster month-end close: With accurate and readily available transaction data from P-Cards, the time required to close the books at the end of the month can be significantly reduced.
The use of P-Cards gives advertisers and producers greater control over purchases with a set spending limit, while also reducing the risk of fraud or abuse.
Advertisers and producers can also get a better oversight on how purchases are being made, identify trends, and make better decisions moving forward about how to proceed with your production’s purchases.
Better vendor relationships
Another notable benefit Pards can provide your production is better relationships with vendors. Using p-cards for purchases from vendors can create better relationships in the following ways:
Cost reduction through elimination of procure to payment process
Faster receipt of payments
Supplier discounts and reduced pricing
Improved customer service
Conclusion: Quickly Get a P-Card For Your Upcoming Commercial Production
Without a doubt, there are many advantages to implementing a P-Card for your production team on your next commercial. Using a P-Card can help reduce overall costs and become time-efficient for your production support team. If you’re considering P-Cards, you may also want to think about production support services.
Here at CMS, we have a qualified team of experts with years of experience to provide customized solutions for your production support needs.
Our production support services include:
Opening vendor accounts and issuance of purchase orders
Invoices and disbursement management in connection with Shoot
Production payroll, including all payroll, worker’s compensation charges, employer payroll taxes and third party processing fees
Crew union signatory services
Banking and insurance services as required
Providing a credit card for the production
Production and general liability insurance management
Petty cash management
Accounting services upon completion of production (and during the production upon reasonable request)
Is your team in need of our support? Contact us today to set up a call.
FAQ’s
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P-Cards are a type of commercial card that allows your production to use for electronic payments when making purchases of goods and services.
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P-Cards can help commercial productions when it comes to smaller purchases making for a simple purchase process. It also benefits your production support team to better monitor and control how purchases are made by your team.
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In the context of commercial productions, P-Cards are typically utilized to facilitate purchases related to production needs such as equipment rentals, location fees, and catering services. They can also be used for acquiring props, costumes, and makeup or for covering travel expenses for crew and cast. The allowable types of purchases are usually outlined by the production company’s policies, ensuring that expenditures align with production requirements and budget constraints.
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Some disadvantages of using a P-Card includes:
Limited visibility
Risk of misuse
Incomplete spending data
