Music CPA

Accounting Services

We take pride in tailoring our services to meet your specific needs. We can handle any or all of your accounting needs, giving you the freedom to do what you do best – your business. Among the services we provide:

  • An up to date set of accounting books
  • Daily computerized downloads of all banking and credit card transactions
  • Annual inventory review and adjustments
  • Financial statements
  • Monthly budgets and cash flow projections
  • Tax reporting
  • Monthly bank reconciliations
Until you need full service business management, you have to keep a set of books and records that is good enough to produce accurate income and expense totals at least once a year. As you grow, you will need increasingly more experienced help to improve your books and records – that is, your accounting system. You will be faced with choosing between service providers calling themselves bookkeeping services, accountants, CPA’s, and business managers. What is the difference and what level of service do you need?

The best way to answer this is to describe the choices an artist must make when it comes to running his band as a business. The big picture is that the artist must, at a minimum, keep a set of books accurate enough so that an annual tax return can be prepared from the books.

The first step that an artist must take is to choose a bookkeeper. A bookkeeper enters the artist’s business transactions, including checks, deposits, and accounts payable and receivable, into the artist’s books. The artist may contract with a bookkeeper to perform these services on a daily, monthly or annual basis.

The next step for the artist is to choose an accountant. The accountant may also provide the bookkeeping.  An accountant sets up the bookkeeping system, monitors it, makes adjusting entries, and interprets the results. The accountant reviews and analyzes the data, creates budgets, oversees cash flow, and prepares financial statements to present to the artist and/or the artist’s business manager.

Next, the artist chooses a CPA. The CPA may also provide the bookkeeping and/or the accounting. The CPA prepares the federal and state income tax returns as well as performs other tax services such as tax planning and interim tax estimates. All tax preparers must now be registered with the IRS. The CPA is licensed to issue financial statements to third parties such as banks and potential investors. The artist may have the CPA issue and sign checks at the direction of the artist. It is not advisable for the artist to use a bookkeeper or accountant to sign and issue checks or prepare tax returns.

An artist business manager is responsible for seeing that all of the above get done correctly. In addition, the business manager helps the artist track receipt of income such as artist, mechanical, and publishing royalties, choose insurance, manage sideman and crew issues, insure compliance of federal and state rules for the artist owned bus, and pretty much anything else not done by the attorney, booking agent, tour manager, bookkeeper, accountant, CPA, or artist manager. Many artist business managers are CPA’s in which case, all of the above – bookkeeper, accountant, CPA, and artist business manager – are rolled into one.