Fully accounted for: Harris & Trotter LLP clients Ellie Goulding, Zayn Malik and Anne-Marie
Accountancy has long been one of the most important – yet often overlooked – parts of the music business. But 2020 changed that. In this special report, leading names in the sector reveal all about their work, and how the coronavirus pandemic has made artists everywhere take a long hard look at their finances...
THE NUMBERS GAME ---- BY GEORGE GARNER ---- D
musicweek.com
J Premier is one of the greatest hip-hop producers of all time. He has not only made classics with his own group Gang Starr, but also produced hits for countless elite rappers. We stress this because, when he reflected on his illustrious career in Music Week last year, one name he referenced stood out alongside his stories of working with legends such as Nas, Jay-Z and the late,
great Notorious BIG. The name was Mary Coleman… “She was my first accountant, and I even tattooed her on my arm when she passed,” he explained. “That’s how close we were. She was the one that had to wake me up and say, ‘You’re not Christopher Martin [Premier’s real name] any more, you are now an entity, and you’re not going to walk around with all this cash in your pocket – the company’s going to make the money.’ I was like, ‘Nah, I want the cheques made out to Chris Martin!’ She said, ‘No, you don’t, because then you get taxed twice!’ She mapped it out and then I eventually became a businessman.” Some may think of accountants as the calculator-toting pros who roll in once a year to trawl through artists’ receipts and file tax returns, but they would be wrong. Just ask Åsa Sandberg, director at CC Young & Co Sverige AB, winners of Accountancy Firm Of The Year at the 2020 Music Week Awards. “Over the years I have discussed everything from divorces and childcare to cars and interior design with my clients,” she explains. “I’m not trying to say that I’m an expert in those areas at all! But that comes as part of being a trusted adviser. I am always doing my best to resolve any issues that the client may have and refer them to other professionals when needed. Sometimes, just being a listener is sufficient. I would say that there are more similarities between an accountant and a psychologist than people think.”
CC Young is one of the key players in the sector, providing accounting and taxation services to the music, film and
accountant and a psychologist than people think”
“There are more similarities between an
ÅSA SANDBERG CC Young & Co Sverige AB
entertainment industries with over 50 people located in London and Sweden. Sandberg leads their Swedish practice, with a client base including DJs, rock bands, songwriters, producers, music companies and more. “We are a truly international firm,” she explains. “Surprisingly, it’s my impression that most Swedish music accounting firms have a very local approach. I am specialised in international tax and I work closely together with my colleagues in the UK office. In addition, we cooperate with music accountants in the US and have a large network of trusted advisers all over the world. We take lead on the engagement and coordinate activities in the different countries, this gives us an advantage when advising our clients that have international careers.” Another leading firm in the sector is Dales Evans & Co Limited, which celebrated its 25th anniversary last year. Based in central London, and employing around 40 people, almost all of its clients are music industry based, including artists, managers and small labels and publishers. Who is listed among these ranks, you may wonder? Well, the likes of Coldplay and Mumford & Sons to name but two. Paul Makin, director at Dales Evans & Co Limited, very much testifies to the sheer range of skills a modern accountant has to have in an ever-changing industry… “We provide all of the services that you would expect from chartered accountants, including annual accounts preparation and the completion of tax returns, however the biggest component of our work is business management services, in particular to artists,” he explains. “This essentially involves assisting artists in running their businesses, covering everything from advising on the most appropriate structure for their business, making payments and collecting income on their behalf, to reviewing royalty statements, cash-flow management, tax planning and mitigation in respect of UK taxes and foreign withholding taxes and general business advice.” It bears repeating: an accountant is much more than a person
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