Music Accountant- The Pros and Cons

music business accountant

Creative professionals such as musicians are different from regular enterprises. This makes it essential to hire a music account that is well attuned to handle concerns unique to your profession. Atlanta-basedAlexis Louis is the founder of Growth Group, a music-focused accounting firm that works with musicians, record labels, and recording studios. A musician herself, she has served as featured panelist at the International Music Conference, Driven Music Conference and as a panelist at the Xero Roadshow. Her academic background includes stints studying Accounting and Taxation at Howard and American Universities.

music business accountant

CPAs will also take care of your bookkeeping, royalty accounting, royalty statements, invoicing, privacy statement, annual accounts, Income- basically all your accountancy needs. Templeman decided he didn’t want to work as a controller or CFO for a large corporation, so he decided to take a job at Madison House, an artist booking and management company. He was doing tour budgets, tax planning and tax reductions for many clients. Templeman discovered how much he loved working directly with clients and helping them get their finances in order. Some Accountants specialize in copyright, royalties or licensing. They may be employed by a music or music related company or they may work for a firm of accounts that specializes in the music industry.

London Music Week Awards 2023

Your record label has to keep track of royalties in order to have an accurate picture of how much money artists are making and to offer clear royalty statements. We can assist you in establishing a transparent and effective system in this regard to avoid disputes and keep everyone happy with what they are being paid. As entertainment accountants, John W. Weldon CPA provides accounting services to businesses and individuals throughout the entertainment industry. Our goal is to let you concentrate on developing your talents while we handle your traditional accounting, bookkeeping, and tax functions.

  • At some point, you may have to stretch every penny as you work on producing new music and building business momentum.
  • This will enable them to enlighten you about different topics that assure your success as a musician.
  • Arts and entertainment accountants advise both individual artists and arts-related businesses on financial matters.
  • You want to work with people who have been actively involved in the music business for years and have experience with a variety of music industry clients.
  • An industry expert who works on financial reporting projects for distributors, record labels, and other players in the sector.
  • If you’re in a band with your own management, you might not even deal with this department directly.

This is particularly true if they lack formal accounting training. Even if your publisher takes care of your accounting, your CPA can carry out recurring audits to identify any potential errors in the setup of contracts or songs in the royalty system. This is one of the areas that music industry accounting has changed a lot since Brexit, and it takes a music accountant with their finger on the pulse of these changes to keep up. At Pearl Lemon Accountants we pride ourselves on our ability to stay up to date with the tax codes, even though the UK has the biggest one in the world.

What Music Business Accounting Services Encompass

Such experts can lend a hand with your accounting, especially before your records become overwhelming. Even though music CPAs are qualified and accredited, some of the duties they handle can be managed by your in-house team. Hiring a music accountant who lacks a detail-oriented and meticulous eye is a waste of time and money. You need a specialist that can sift through piles of financial records and affirm that all details are current and accurate. Once you invest in branding for musicians and proper marketing, the last thing you want is to have a bookkeeper whose analyses don’t yield consistent results.

How do I break into music business?

  1. Consider your choices. There are several decisions music artists must make throughout their careers.
  2. Make connections.
  3. Prepare for the process.
  4. Create an online presence.
  5. Perform often.
  6. Find a mentor.
  7. Gain internship experience.
  8. Embrace your passion.