Working as a professional musician may mean you're involved in selling your music or performing at shows. Creativity is probably an innate passion allowing you to do what you love. Unfortunately, part of this gig may involve doing tasks you're really not interested in completing. For many musicians, the job of keeping their business finances current is just one extra piece of busywork they would rather not handle. If this sounds like you, it may be best if you think about outsourcing the work to a professional entertainment industry CPA. Working with an entertainment industry accountant through the cloud helps safeguard against paying too much in taxes and also helps make sure your financials are being kept accurate.
Benefits Of Detailed Bookkeeping for Musicians
Staying compliant with the IRS and having the ability to analyze your profits and expenses is less burdensome to accomplish as a musician when you are keeping detailed entertainment industry bookkeeping records. You're able to see how much money you're making in royalties for music you're selling or the profits from a worldwide tour. You'll also be able to take advantage of every business expense, which should be tracked accurately and applied against your income. However, doing this by yourself may be inconvenient and time-consuming. A reliable solution for this is to get help from an entertainment industry CPA who takes care of entertainment industry bookkeeping for musicians. Their experience and understanding of accounting will help ensure you've got an accurate read of your current cash flow. This preparation can come in when you're halfway through a tour and discover you need to quickly find a backup for an expensive piece of audio equipment that has stopped working. When you have a dedicated bank account set up for your music business and a detailed synopsis of each transaction for income and expenses, you always know the financial health of your business. This organization means you'll always be ready for possible opportunities or unexpected emergencies.
Musicians Benefit From Entertainment Industry Tax Planning
If you're generating income as a musician through ticket sales or music you're selling, you're required to report this to the IRS when the dollar amount you make is over a specific figure. If you're considering yourself a self-employed musician, there are several expenses you can deduct associated with performing, recording, writing and touring. The challenge is knowing how to do this correctly. Fortunately, there is an excellent solution if you decide to work with an entertainment industry accountant here at Fusion CPA. We offer assistance from seasoned entertainment industry tax planning specialists who know the ins and outs of taking deductions as a musician. We can help come up with the appropriate figures to depreciate your equipment, which will help lower your final tax bill. Our best in class financial services can help keep you compliant and error-free with the IRS.
Working With A Personal CFO Advisory Service
Putting your music profession together, practicing and rehearsing takes hours of sweat equity. While you may start the process by yourself, it may lead to forming a band. Several different tax implications can affect you based on your business entity. Getting guidance from our personal CFO advisory service can help. When an entertainment industry financial adviser from our entertainment industry CFO advisory service works with you, they can help determine if it would be fiscally beneficial for you to change your business entity. Creating an LLC or incorporating might be an advantageous move you should pursue. The timing of this can be crucial. You may be able to save yourself a considerable amount of money in profits now and in the future. An entertainment industry financial adviser from our entertainment industry CFO advisory service can also assist with contract negotiations or finding areas in your income and expenses that can be improved or eliminated to help generate more profits. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
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. 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