I write, commission and edit content around the wider world of music creation, as well as penning deep-dives into the essentials of production, genre and theory. As the former editor of Computer Music, I aim to bring the same knowledge and experience that underpinned that magazine to the editorial I write, but I’m very eager to engage with new and emerging writers to cover the topics that resonate with them. My career has included editing MusicTech magazine and website, consulting on SEO/editorial practice and writing about music-making and listening for titles such as NME, Classic Pop, Audio Media International, Guitar.com and Uncut. The information provided on this website (the “Site”) is for general informational purposes only and should not be construed as legal advice. While we strive to ensure the accuracy, validity, and reliability of the information on the Site, we cannot guarantee its completeness or availability. Use of the Site and reliance on any information provided on the Site is solely at your own risk.
Incentive Tracking & Tax Reporting
These payments can be based on various metrics, including sales, streaming counts, or even airplay. The complexity of royalty accounting arises from the need to accurately track and report these metrics, ensuring that all parties receive their fair share. QuickBooks is a comprehensive accounting software for small to medium-sized businesses.
- The record company and the recording artist each get a percentage of royalties from the masters.
- Before the artists can basically see a dime of their share of the earnings, they have to repay the record company for their advance.
- The entertainment industry is subject to a myriad of regulations, from copyright laws to tax codes, and non-compliance can result in significant financial penalties.
- Accountants working at The Music CPA in Illinois make sure performers of all sizes collect everything they have earned from all their revenue sources, from royalties to performances.
- For instance, some countries offer tax credits or rebates for film production, which can significantly reduce costs.
- For example, box office revenue is typically recognized when tickets are sold, while licensing revenue might be recognized over the term of the license agreement.
Clients
However, a relative of the client’s former wife reached out to The Music CPA to let them know she still held some rights through the music that her ex-husband made, and asked what their basis was in this deal. Johnson explained how they could inherit those producers’ rights, as well as how to save a lot of money on taxes. “I know how to relate to these people and my experience as a musician helps me understand what it means to be involved in this industry,” said Catalano. The following list represents just a few of our current music industry clients, which demonstrates both our familiarity and expertise in various segments of the music industry, as well as the lack of geographical barriers in servicing our music industry clients.
Composition copyright
- Detailed royalty statements, often generated by specialized accounting software, provide a breakdown of how payments were calculated, including the number of units sold or streamed and the applicable royalty rates.
- We talk a lot at ProCFO Partners about the value of our network of CFOs and their collective expertise and experience.
- Atlanta-based Alexis Louis (fka Alexis Kimbrough) is the founder of Growth Group, a music-focused accounting firm that works with musicians, record labels, and recording studios.
- The Music CPA tries to save people from this dishonest policy by connecting young artists with attorneys who can review their contracts and point out any red flags.
- Outlets that owe royalties make it very complicated to track them, especially in rural areas, so no one can easily figure out what’s going on.
- We also assist with certification applications and post-wrap reporting, including preparing tax returns and supporting documentation to claim tax credits.
Today, he blends those two passions together as a Managing Director at PS Business Management, where the company provides “concierge level accounting services” to some of the biggest names in music. Artistic business financial services are essential regardless of the size of the business. Therefore, Growth Group can assist any musician, photographer, designer, contractor, MLM or IBO, consultant,, self-employed, or home based business owner to make a profit and reduce taxes at an affordable music industry accounting price. Alexis M. Kimbrough, a true musicians accountant, founded AMKtax in 2008 during her senior year at Howard University, in Washington, DC. During the beginning stages, Growth Group focused on PG County Maryland income tax preparation for individuals.
- Accurate IP valuation is also essential for securing financing, as lenders and investors often require detailed valuations to assess the risk and potential return on investment.
- One of the primary challenges in royalty accounting is the sheer volume of data that needs to be processed.
- Royalty accounting is a specialized area within the entertainment industry that demands meticulous attention to detail.
- This level of transparency helps build trust and can prevent potential legal disputes.
Music Business Accountants advise and work with musicians and music industry companies on financial matters. Growth Group’s team includes outstanding music https://www.bookstime.com/articles/bookkeeping-for-hair-stylist accounting specialists who collectively bring over 15 years experience in entertainment and music accounting, and entrepreneur tax and bookkeeping in the US. “The state of Minnesota has a specific entertainer tax, while Wisconsin has on their own tax regulations for entertainers that are from out of state,” explained Johnson.
- Each of these income streams may be subject to different tax rules, necessitating a thorough understanding of applicable tax codes and regulations.
- “We have a big problem with recruitment, and we have been much less involved on an international level because we are so short-staffed,” said Catalano.
- The importance of accurate IP valuation extends beyond financial reporting; it also plays a crucial role in strategic decision-making.
- To partially resolve this issue, Congress designated SoundExchange, a nonprofit music rights management collective, as the only recognized organization allowed to collect and distribute digital performance royalties for sound recordings.
- Fortunately for arts and entertainment accountants, the best networking might come from attending a concert, play, or movie release.
When Templeman graduated from the Fisher School, he was set to move to San Francisco whether he had a job or not. He interviewed with some of the Big Five accounting firms to have backup plans in place, but his eyes were always set on the music industry. Music took her to college in Washington, DC where the music scholarship helped pay for her accounting degree. “Showtime” What is bookkeeping even gave her the opportunity to perform internationally, with thousands in the audience. This is why she loves musicians, artists, and entertainers – because that is who she is. With our extensive experience conducting licensing and royalties audits we are often asked to provide expert testimony involving disputes between our clients and their business partners.
