Friedman Kannenberg Music Industry Accountants, CPAs, & Consultants
We’ll also help with the day-to-day minutiae of running your record label, including recording your financial transactions with suppliers and submitting tax returns. If you work in production, you might also be eligible for research and development tax relief. If you’re undertaking innovative research to solve a problem through technology, this is well worth looking into – and something too many in the music industry forget to claim. 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. Streaming still has a way to go, however, before it can be credited with rescuing the flailing music industry.
- Keeping accurate records of expenses and revenue is essential for any musician or music industry professional, so having the best accounting software for your needs is crucial.
- With YouTube and TikTok being reluctant to pay royalties and less than a penny earned per stream, Catalano said many artists end up confused and disappointed.
- When necessary, we’ll work with your attorney to collect unpaid royalties and will keep you in compliance with current tax regulations.
We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive. 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. 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 price.
We offer our accounting, tax, and wealth advisory services to producers, record labels, engineers, recording studios, bands, musicians, singers, dancers, choreographers, music production companies, media companies, and publishing companies. Managing money in the music industry can be a daunting task, and if you don’t have the right accounting software in place, then it can be an even bigger challenge. Keeping accurate records of expenses and revenue is essential for any musician or music industry professional, so having the best accounting software for your needs is crucial. Fortunately, there are many great options available specifically designed to help the music industry stay organized and financially secure. In this article, we will examine 5 of the best accounting software solutions for musicians and music industry professionals.
● Presents and subsidies for songs, which include from the European, UK and Northern Ireland government, neighborhood councils, Arts Council Northern Ireland, etc. ● Self-financing your song, the usage of coins from personal reasserts, pals and family, or partners. Click the link in the email we sent to to verify your email address and activate your job alert.
During the beginning stages, Growth Group focused on PG County Maryland income tax preparation for individuals. After inquires from our musician customers needing an accountant, Growth Group expanded the services to include both bookkeeping and accounting services for music entrepreneurs. Our services go way beyond accounting and tax planning to care for the complete financial picture of each client. Musicians and music industry businesses need a resource on their team that will help control costs, review royalties, and watch the budget.
We assist with musician taxes, record keeping, accounting, coaching, and music contract review. As experienced entertainment accountants, we understand the industry and will always make sure you’re being properly compensated. We know how to examine copyright and licensing agreements to uncover discrepancies and scrutinize royalty accountings to find missing payments. When necessary, we’ll work with your attorney to collect unpaid royalties and will keep you in compliance with current tax regulations.
The Art of Endorsement Deals
The business side of the music industry remains misunderstood by many talented musicians nowadays. This creates obstacles that may be difficult to comprehend without an initial understanding of the industry. 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.
- Despite more traditional formats being down, streaming is up and its potential suggests good things for artists as well as the industry as a whole.
- QuickBooks is a comprehensive accounting software for small to medium-sized businesses.
- The idea is to help the client with tax planning, record keeping, tax prep, bookkeeping, bill paying, contract review, and budgeting.
- Clearly, from the charts and stats above, permanent forms of music are on the decline, while more and more listeners are turning to streaming as their primary music source.
We can help you with traditional accounting, financial statements, tax compliance, inventory management, and much more. Accounting software designed for musicians typically costs between $20–$200 per month, depending on the features and services offered. Typical features of this type of software are tools for tracking performance income, expenses, taxes, payroll, invoicing, and record-keeping. It is also often capable of generating reports that can be used to better understand your financial performance. Some cloud-based programs even offer real-time synchronization with multiple devices such as phones and tablets so that you can access your data wherever you are.
How To Become a Music Business Accountant
At Alegna Financial Management, Inc., we will serve as your trusted financial advisor. You can count on us to keep a close eye on your money so you can pour all of your energy into living your best life and doing what you do best, making music. The best arts and entertainment accountants are creative-minded, personable, articulate, cool-headed, and communicate well with their artistic clients. Exceptional organizational skills, attention to detail, and the ability to manage time are vital. Although accounting firms have set business hours, that doesn’t mean a Music Business Accountant’s day ends at 5 pm. They work with artists who live in other time zones, as well as artists who are juggling a day job while making music at night.
Instead, they will show their client how to take advantage of current tax laws to deduct every dollar they can legally. 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. What happens when accountants decide to focus their practices on exciting fields like music, aviation, sports and forensic investigation? Because we value education, Growth Group supports musicianship because we believe participation in fine arts gives students an advantage in school. Many clients rely on Templeman’s team to help them budget to purchase a car or a house, then guide them through the process and get them the best financing terms available.
With wider availability of smartphones and increased connectivity via the Internet, the industry worldwide has witnessed an influx of high-quality streaming services, like the aforementioned Spotify as well as Apple Music and Jay-Z’s Tidal, to name a few. By understanding these concepts, musicians of different backgrounds can better grasp the business aspects of the music industry. This knowledge can enable them to navigate the music industry more effectively and make informed decisions to support their careers. This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes.
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. Accounting for royalties is an essential task for your record label, as you need to get an accurate picture of the amount artists are earning, and provide clear royalty statements.
Fans still value the unique experience of seeing their favorite artist in concert enough to pay for it. Global music industry revenues totaled roughly $15 billion in 2015, while the live music equivalent totaled nearly double, at $29 billion. This rise in the music industry’s revenue is actually thanks to the same digital music phenomenon that contributed to the damage in the first place. Digital sales – such as music streaming services and track downloads – now account for 45% of total global music revenue, compared to 39% for physical sales. Music took her to college in Washington, DC where the music scholarship helped pay for her accounting degree. “Showtime” even gave her the opportunity to perform internationally, with thousands in the audience.
Tax advice for music businesses
We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions).
Entertainment industry accountants can help you create profit and loss statements, cash flow analysis, and balance sheets. They can show you key metrics based on benchmarking and help you evaluate and monitor your revenue and cash flow. Performance royalties kick in if your song is streamed on Spotify or a different streaming platform. Performance royalties are divided into two categories if your music is performed in public, in restaurants, on the radio, or in malls, and they are publishing rights and songwriter royalties.
Our entertainment niche provides the knowledge to manage financial needs and bring professional resources to the table for each growth phase of your career. We are headquartered in the heart of the Hollywood production hub, which has made us a convenient and trusted resource for our entertainment and media clients – including individuals, record labels, production companies, and more. QuickBooks is a comprehensive accounting software for small to medium-sized businesses. It includes features such as payroll and inventory management, along with various other accounting features. Taylor Swift is just one artist who famously removed her music from streaming sites because she claimed streaming services were hurting the industry. As this graphic demonstrates, Swift dramatically outclasses other artists (whose music remains available to stream) with the revenue from her 2015 tour alone, demonstrating that nothing seems to attract a fan like the live experience.
It offers features such as tracking expenses and income, managing invoices, budgeting and forecasting, and connecting with payroll services to help streamline the financial side of their business. Additionally, its user-friendly interface and built-in reporting features make it easy to use. Jerry Catalano has been helping performing artists navigate concert, touring, mileage and instrumentation costs for more than 50 years, but things can get more complicated when musicians write their own music. When performers have original material and recordings, music accountants must track Music industry accounting royalty streams that come from sales of records, streaming revenue and other sources of income, as well as make sure they are properly copyrighted. If you are an entertainment attorney, agent or manager, and are seeking a CPA who can provide your clients with tax and accounting services, either through you or directly servicing your client, please email or call and ask for Jerry Catalano. We provide litigation support for the music industry, including expert witness services, reviews of recoupable expenses, penny letters, tour budgets, depreciation schedules, and tax planning.
After a few years, the company opened The Fillmore in Denver, and Templeman moved there to become a controller for the entire Rocky Mountain region. He worked there for a few years, settling shows at Red Rocks Amphitheatre, the Pepsi Center and The Fillmore, as well as working on budgets and overseeing their financial statements. Music Business Accountants are paid per project, based on the complexity and time involved. Live music is the one area of the industry’s revenue that remains reliable as a guaranteed source of cash. This uptick in revenue puts the total industry revenue in 2015 at $15 billion, a 3.2% increase – the highest year-to-year growth in almost 20 years, according to a report out by IFPI.