Riches in niches: Inside the music industry

“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. “Accounting has that reputation of being boring when there are so many exciting areas to explore.”

• Depending on the form of task you’re seeking to samlelån, a number of the finance alternatives can be more desirable than others.
• They also assist clients with taxes and other accounting needs, all while helping them enforce their media play rights, composers’ rights, performers’ rights and publishing rights.
• 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.
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But even the accounting exercise of tallying sales and fees with the track enterprise isn’t straightforward. Growth Group works with sole proprietors, partnerships, limited liability companies (LLC) and corporations. I’m Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

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. We also have a team of experts, which includes Certified Fraud Examiners, that can prepare damage calculations, and assist with case assessment, case strategies, discovery, expert witness testimony, tax analysis, and fraud prevention, detection, and deterrence. We can also help with accounting for royalty revenue, interpreting statements from record companies, publishers and distributors to ensure you’re getting paid your fair share and are paying the right amount of tax on your earnings.

Accountant – Goldenvoice

Advances in technology and the increasing use of it, allow you more access to us as your  music accountant, anytime, in your own way. You even have access to all of your important music business or personal tax documents in one place via your secure online storage. Growth Group can be the financial adviser for your music business and provide access to your music company finances via Xero all from our location in Maryland.

The Music CPA provides entertainers an independent outlet to help manage or review finances. The difference between The Music CPA and other professionals in the industry is we do not share in a percentage of your entertainment revenues. This independence provides an additional trusted outlet to assess financial decisions. Our entertainment niche provides the knowledge to manage financial needs and bring professional resources to the table for each growth phase of your career. Before settling on this field, many arts and entertainment accountants work in other capacities in their arts-related industry—often similar roles to those held by their eventual artist clients. This experience supplies them with professional connections—a source of potential clients—and powerful insight into the financial concerns of their artist clients.

“The most impactful change for music composers has been the streaming services,” said Catalano. In our new series, “Riches in Niches,” we’ll explore how these colorful niches indicate that concerns about commoditization and a narrow future for the profession may well be unfounded. 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. This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services.

Patrick Templeman graduated from the Fisher School of Accounting with a passion for accounting and the music industry. 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. Course DescriptionA number of accounting standards are targeted at the entertainment industry, requiring businesses to follow specific rules for license agreements, the buildout of cable systems, film costs, music licensing, and more.

Retail BOOT Camp””Financial Management

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. Making the move into working with music creators meant scheduling around day jobs (for those who weren’t full-time yet) and tour dates. I work during the typical work week and put in the necessary hours to produce value for the people who have entrusted me with their finances. 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. Because we value education, Growth Group supports musicianship because we believe participation in fine arts gives students an advantage in school. The information provided on this website (the “Site”) is for general informational purposes only and should not be construed as legal advice.

Since streaming services didn’t exist back then, any sales from these platforms are not covered in older contracts, and Catalano said it’s almost impossible to overturn contracts that were signed during that period. Our services go way beyond accounting and tax planning to care for the complete financial picture of each client. 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. Alexis M. Kimbrough, a true musicians accountant, founded AMKtax in 2008 during her senior year at Howard University, in Washington, DC.

The Dumbest Things Music Retailers Do (Double Session)

The music industry is about more than musicians – our clients include music studios, gig venues, indie record labels and innovative tech startups with music as their focus. 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. On-the-job training and experience are necessary to land a position as a Music Business Accountant.

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. 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.

ASC 928 Entertainment—Music

But the first entry covers a specialized firm that works with musicians, composers and performers to make sure they get what they deserve. The best way to find a job as a Music Business Accountant is by building an educational background and establishing industry connections. “Finish up your schooling and certifications, then look for internships and opportunities to work with Managers and artists. Advancement in this role comes through working with well-known artists or getting hired by a prestigious firm, which means higher wages and more famous clients.

For some Accountants, advancement could also mean obtaining enough paying clients to strike out on their own and establish their own accounting firm. When working in the capacity of a Tour Accountant, job duties include creating an initial budget for the tour, verifying expenses, and ensuring collection of all income while on the road. Over the past 30+ years, our firm has gained in-depth knowledge of the music industry, in part through our active participation and involvement in several music specific trade organizations.

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 royalty streams that come from sales of records, streaming revenue and other sources of income, as well as make sure they are properly copyrighted. Accountants may be self-employed, work for an accounting firm, or be employed by a music company or film or television studio. You may think it strange to differentiate music business accounting functions from other types of accounting. However, those accounting for music industry professionals have a unique job because their clients have unique positions.

“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. “Some venues will collect sales tax for merchandise sales, others won’t. We face compliance issues constantly, and between income and sales taxes, it can quickly get complicated.” Future installments in the series will dive into firms that cater to professional athletes, victims of fraud and embezzlement, hotels and restaurants, and more.

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. Accountants that specialize in accounting for music industry professionals can help artists calculate royalties due to them. On the flip side, they can help smaller labels determine the number of royalties Music industry accounting that go to their songwriters. Now a look at represents a primary step in the direction of measuring the direct finances of the music industry. The Industry is described extensively to consist of the manufacturing and income of recorded track, track publishing, stay performances, using track in radio broadcasting, and musical contraptions and lessons.

Music Business Accountant

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.

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. For example, most late-night talk shows’ music played after midnight because it cut the royalties in half, and Catalano said the job of an accountant is to solve these recurring “mysteries” on clients’ paychecks. 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.

• However, those accounting for music industry professionals have a unique job because their clients have unique positions.
• We can help you with traditional accounting, financial statements, tax compliance, inventory management, and much more.
• 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.
• Catalano said that working closely with influential artists is one of the most exciting sides of the profession, with clients such as Duran Estevez, the lead singer of 1990s hitmakers Max-A-Million.
• Johnson explained how they could inherit those producers’ rights, as well as how to save a lot of money on taxes.
• During the beginning stages, Growth Group focused on PG County Maryland income tax preparation for individuals.

Musicians and music industry businesses need a resource on their team that will help control costs, review royalties, and watch the budget. 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.