Riches in niches: Inside the music industry
Real-time insights into financial trends – Accountants can use the data from accounting software to provide musicians with real-time insights into their financial trends. This helps them determine where their money is going, where it’s coming from and what needs to change in order to make the most of their finances. “No matter how small they think the deal is, we tell our artists not to sign a contract unless a lawyer looks at it and, if you can’t afford it, we’ll find you one that provides services pro bono,” said Catalano. “You can’t accept something that you don’t understand, and these record labels made it mysterious enough for only an accountant to understand. So let us have a look at the royalty rate, and it can save you a great deal of suffering.” A vocalist and guitarist for his own band, “The Fource,” Catalano also used to write songs for blues artists and “The Conan O’Brien Show.” His involvement in the music industry made him notice problematic trends.
We review royalty statements and agreements to better understand the state of each client’s account, and ensure payments are accurate, received in a timely manner, and contractual obligations are met. The information we extract allows us with to bring key insights to our clients to help them make the best decisions to maximize income and extract value from their catalogue. We also advise and facilitate the timing and compilation of the data required for royalty audits. One of the biggest myths that cannot be further from the truth is that hiring a music accountant is expensive.
ASC 928 Entertainment—Music
It includes features such as payroll and inventory management, along with various other accounting features. A royalty is a payment to a company or individual with creative assets that are being used by a third-party. Music royalties come from copyright or intellectual property and the owner is paid before stockholders, company executives, etc. Greenlight Financial can help artists calculate how much royalties are due to them. We can also help small record labels when calculating the royalties due to their songwriters.
- The data gathered can help prepare accurate tax returns while avoiding potential penalties or fines.
- Such experts can lend a hand with your accounting, especially before your records become overwhelming.
- Gone are the days when accountants would work alone at a desk and remain in solitude for most of their careers.
- Hiring a music accountant who lacks a detail-oriented and meticulous eye is a waste of time and money.
- We are passionate about the services we provide and strive to serve each client’s individual needs.
- I was hoping that one of y’all in this subreddit either had/has experience working in that industry or performing audits for that industry and could give me some first hand insights.
This experience supplies them with professional connections—a source of potential clients—and powerful insight into the financial concerns of their artist clients. There is more to what makes a good music accountant than merely the ability to keep and interpret financial records. Even though qualified experts have outstanding mathematical skills that allow them to compare, analyze and interpret data and figures, it is necessary to seek more.
What does an Arts and Entertainment Accountant do?
Accounting Today is a leading provider of online business news for the accounting community, offering breaking news, in-depth features, and a host of resources and services. The firm also works with attorneys from local pro bono organizations that support music industry accounting struggling artists, as well as actors, theaters, influencers and other clients in the entertainment industry. I have over 30 years of experience in Accounts and Bookkeeping as I ran my own accounting company while my Children were growing up.
- T’s this, along with the opportunity to work closely with artists and arts-related organizations, that draws most to this field.
- The firm also works with attorneys from local pro bono organizations that support struggling artists, as well as actors, theaters, influencers and other clients in the entertainment industry.
- Additionally, its user-friendly interface and built-in reporting features make it easy to use.
- A Qualified Accountant in the music industry is a chartered Accountant with financial expertise within a music industry organization, record label or related music company.
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- Generally, the professional will prevent you from making small mistakes that can cause significant problems in the future.
With music labels losing money on 90% of the artists they sign, Catalano said they are even less willing to take risks. We are uniquely placed to offer a fully bespoke accountancy service that specifically serves the needs of those working in the music industry. There are a lot of musicians who are not taking advantage of the expenses they are incurring. If you are in a bracket where you pay 25 percent taxes, each expensed item you claim is the equivalent of purchasing that item at a 25 percent discount. Music Business Accountants advise and work with musicians and music industry companies on financial matters.
Gear & Software
However, I found it quite isolating – I missed working with other people and office life so thought I would look to see what was out there. By chance, I was approached by ITLA and I thought the role was a perfect fit as it tied in nicely with my previous TV experience working with a variety of Actors and Musicians. We prefer long-term business relationships and put the time and effort in to make sure that everyone is looked after with their specific needs in mind.