Your assets should always be greater than your liabilities, and the difference is your net worth. The income statement shows your revenue and expenses over a period of time, usually one year. This statement is important because it shows you whether or not you are making a profit.
However, those accounting for music industry professionals have a unique job because their clients have unique positions. The best accounting app for musicians is one that anticipates the needs of people, like you, who have a business to run, and who don’t have a lot of time to spend on accounting. It’s one that keeps the accounting terminology simple, provides an easy user interface, and an in-house customer support team that’s ready to help. Give us a try and you’ll see how FreshBooks’ accounting software can work for you.
How to Keep Track of Your Income and Expenses
Benchmark artists and releases while evaluating your label’s ROI with our comprehensive music royalty accounting software. Our tour accounting has assisted musicians and bands at every level, and is particularly effective for established acts. We’ll work with your manager to handle budgets, business management and administration throughout the tour. We’ll also liaise with agents and promoters, and by the end of the tour we’ll have created the accounts and registered any taxes you need to pay.
With our affordable music royalty reporting software, pay only for what you need. Now more than ever, labels and artists need manageable, precise and regular royalty statements. Automate your music royalty accounting and build stronger, more trusting relationships with your artists. If you are in the music business, the chances are good that you got into it to create music, express yourself artistically, and allow others to connect with the beautiful music you made. You unquestionably did not get into the music industry to deal with the business end and manage things like music royalties. Yet, this remains a very important part of what you do, and if you do not manage it correctly, you might run into challenges with the IRS.
The Ultimate Accounting Playlist: Music to Get You Through Tax Season
If you’re a musician, you know that music can be a great way to make money. But what you may not know is how to account for your music-related income and expenses. This guide will help you understand the basics of music accounting so that you can keep more of your hard-earned cash.
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. 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.
Benefits of FreshBooks Double-Entry Accounting for Your Music Business
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. 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. Rarely does an music accountants accounting issue move markets and surprise people throughout the music business. Because musicians, producers and others in the industry are often mobile, going from recording to studio to venue to overseas performances, we strongly advise the use of cloud accounting software. 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.
Fusion CPAs have the expertise when it comes to managing multistate entertainment industry tax and accounting for royalties. This toe-tapping classic is the perfect theme song for tax season. With a catchy beat, you are sure to take care of your business and have fun at the same time.
Tax Deductions for Musicians
As well, FreshBooks provides the option of allowing your clients to make secure online payments. YMU Business Management works with musicians at every stage of their career. Whether you’re playing local gigs, just signed a record deal, or are performing chart topping hits, we’ve got you covered. It supports up to 20 royalty sources, and includes our Merlin Fetcher feature. The Indie Label plan supports up to 10 royalty sources, offers seamless payouts and a more personalized artist experience.
“You’ve not only got to be detail-oriented, you’ve got to be personable and creative. As a Music Accountant, I’m psyched to work with some of the most creative minds, and I try to appeal to their creativity in explaining financial concepts,” Louis says. Musicians can deduct a wide variety of expenses, like instruments, computers, websites, cell phones, travel, dry-cleaning, makeup, association dues, costumes, and more.
They can also advise you on the best entity structure for your entertainment business and apply interstate accounting tax laws to ensure that you aren’t paying double taxation. Music business accounting has the same broad goals as general-purpose accounting. The idea is to help the client with tax planning, record keeping, tax prep, bookkeeping, bill paying, contract review, and budgeting. However, creative professionals have particular financial concerns unique to their profession, such as music royalty accounting and managing a touring production.