Laid Back Family Firm a Hit With Hollywood

In Hollywood, a recognizable family name can count for a lot, but at R.C. Baral & Co. Inc. it verges on over-the-top. The Encino accounting firm, which handles bookkeeping, payroll, budget-tracking and taxes for TV shows and films, has four brothers and a nephew who are partners – and who all share the same last name. The family firm was started by eldest brother Robert “Bob” Baral 32 years ago in Van Nuys, and traces its success to a willingness to be flexible. Each partner has a sub-specialty, and together the firm will perform jobs both large and small. “When someone comes who is producing a film, we can handle it from beginning to end, from setting up the accounting system to insurance to final tax payment,” said David Baral, the brother who specializes in taxes. “Not that many companies can handle that broad spectrum of services.” For example, some producers keep all their receipts and write checks on set, and then bring the paperwork back to Baral for a final tally. At the other extreme, some reality TV shows hire the firm to manage the books every day. The firm has 35 employees, including five who work in a Vancouver office to service productions in Canada. The payroll has nearly doubled from 20 employees a decade ago. While the brothers declined to discuss their fees, Joel Baral said that unless a project has a budget of at least $250,000, it usually can’t afford the firm’s services. The client roster includes Walt Disney Co., NBCUniversal, Warner Bros. Studios and a number of independent production companies. Tom Prince, executive vice president of production at Weinstein Co. in Beverly Hills, said he hires Baral for post-production accounting. Baral goes over the books and then continues to pay bills as they trickle in during editing. “We have a high volume of films at Weinstein, and I feel completely comfortable with them, knowing the pennies and nickels will all be counted,” Prince said. The move of filming to other states and countries has complicated the firm’s job. Foreign and state tax credits have resident employment requirements, purchase rebates and mandatory third-party audits. “With everyone traveling, supervision of productions is a lot more complicated,” David Baral said. To remain competitive, the firm has invested in training and continuing education for its staff. By attending industry workshops and seminars they keep current on specific credits in each state. John Cones, a film-finance attorney in Austin, Texas, said the challenge for many independent producers is the high cost of the service a firm like Baral offers. “A lot of low-budget films don’t hire one (an accountant) because they can’t afford it, or at least they think they can’t,” Cones said. Flexibility advantage Because it’s a family-owned firm, the corporate culture that emphasizes flexibility also includes Barals’ individual personalities. Bob Baral, 59, for example, also works as a reserve deputy with the L.A. County Sheriff Department. Joel Baral, 48, is a soccer fanatic. Howard Baral, 57, is a yoga practitioner. And David Baral, 54, rides motorcycles and owns a ranch in Agua Dulce with livestock. Flexibility has proven an advantage as the company has adapted to low-budget production as the entertainment sector becomes more digital. Joel Baral said the company looks for web producers with multiple projects that together can reach the budget threshold of $250,000 for a viable client. “On the high end, Hulu, Netflix and Amazon.com shows have budgets that are almost the same as regular TV series,” Joel Baral said. “The web channels are different, but there are a lot more productions and the budgets are rising. It means new clients for us.” On the horizon, David Baral sees crowdfunding as the next complication in the firm’s business. In the last year, the company has worked for two clients that financed their web series online. For now, the law allows sites to take money from qualified investors, so the firm audits costs. If the rules allow the general public to finance films, the work will grow even more difficult. “It’s real money, real production, but different sources of funding,” said David Baral. “In the future it could mean more movies and different types of movies than we’ve ever seen.” R.C. Baral & Co. Inc. Encino Production-accounting firm that handles bookkeeping, payroll, budget-tracking and taxes for TV shows and films. Founded: 1982 Partners: Would not disclose