inequity of this is heartbreaking. It’s been important this year to understand what grants/reliefs are available. Clients have also had more time to focus on their finances and ask questions which normally are too far down the priority list. I’ve spent a huge amount of time dealing with clients moving homes and a lot of that has come from lockdown and people re-evaluating their lives.” The pandemic has, seemingly, taught artists some important business lessons. “With touring disappearing literally overnight last year, there was an immediate demand to understand the financial landscape for the rest of the year and how to negotiate it,” says Gelfand, Rennert & Feldman’s Ewen MacNeil. “The sudden slowdown did afford artists and management the time to look at areas of the business, such as contracts, which are traditionally put on the back burner while artists tour.” “I need to ensure, in the absence of live revenue in particular, that I work hard to help maximise my clients’ cash flow,” adds GR&F’s Helen Spiers. “I’ve explored ways to increase existing revenue streams such as renegotiating an existing agreement or undertaking a royalty audit, or looking for new revenue streams such as putting on virtual shows. Maintaining awareness of the ever-changing landscape of grants, loans and government schemes has been a challenging but essential part of my role this year.”
“Lots of people call themselves accountants but don’t
have the right qualification”
CHARLOTTE HARRIS HARRIS & TROTTER
have a ready source of advice available,” says Paul Makin. “Any qualified accountant should be able to prepare accounts and tax returns, but accountants who don’t specialise in music may not be aware of tax averaging rules which can be very beneficial to songwriters whose income may vary considerably from year to year, and they certainly wouldn’t be able to advise on the various different ways to collect neighbouring rights income! I ensure I’m very transparent with my clients. While we ensure that we take care of business matters on their behalf, I’m always conscious that we are dealing with their business and money.” “It’s important to make sure your accountant is chartered or certified,” adds Charlotte Harris. “This means they have a qualification and had to sit lots of exams to get to that place. Lots of people call themselves accountants but don’t have the right qualification and you then put yourself at a higher
risk of error and they may not have suitable insurance to protect you.”
Another thing all of our interviewees stress is that
“As soon as it was clear that the pandemic was going to end touring for a significant period of time, and a slowing down of other aspects of the industry, we found ourselves rapidly working on revised business projections for almost every client,” reflects Dales Evans & Co Limited’s Paul Makin. “Very few artists haven’t been affected, at least to some degree. It was only by having a solid understanding of their business I was able to assist in planning for such a changed financial environment.” All of this is, of course, without mentioning the dreaded B word. “Additionally, we have to deal with the changes that leaving the European Union has created for our clients, predominantly in relation to how this will affect touring when it starts up again, through to the effect on merchandising, particularly for clients that run their own merchandising operations,” says Makin.
“[When] we have all been vaccinated the demand for live performances is going to be bigger than before,” observes Harris & Trotter’s Charlotte Harris. “Once the planning for this gets underway, we’ll see the impact of Brexit on all the regulations and admin.” It has always been good advice to get an accountant, but perhaps more now than ever that guidance rings true. “It is crucial, as an artist particularly, to appoint an accountant with experience of the business so that they
72 | Music Week
it’s crucial to find the right accountant for you. Personality? Rapport? These things matter. “It’s very important, at least if you would like to have an accountant that understands your business and provide you with the best advice,” says CC Young AB’s Åsa Sandberg. “For one-man companies, the financials are generally closely linked to personal [ones]. I can do a much better job if the client is comfortable in sharing their personal plans. That is only going to happen if the client and I understand and respect each other.”
“I feel rapport is really important with clients – they need to find you approachable so that they are comfortable asking what they feel might be a ‘stupid’ question,” agrees Jo Ewers, of Gelfand, Rennert & Feldman. “We don’t expect clients to understand how their balance sheet works, but they need to feel able to ask for financials to be presented to them in a way they can digest.”
“Year-end tax returns feel like a small part of the job”
PAUL MAKIN DALES EVANS & CO LIMITED
“Clients are generally very happy to chat about something other than just tax returns or monthly spending,” adds Ewen MacNeil. “When you have established other common ground those conversations are generally much easier. If you appreciate their art then they will be much more open to discussing yours. The number of conversations I have regarding new songs, producers, shows, studio processes or equipment makes my world much richer on a daily basis.”
Who knows? Maybe one day someone reading this will be doing what DJ Premier did with one of our interviewees’ names.
FINANCIAL STATEMENT
Top names in accountancy offer you some free financial advice…
“I hate to be boring but planning and organising is everything. The best way to take control is to plan and to be one step ahead. Ad hoc solutions tend to be expensive. Planning and being well organised is also crucial for a tax-efficient setup. Financial success goes hand in hand with professional achievements. It’s important to set goals and thereafter define what would be required to achieve these goals. Success requires a lot of hard work and it is my experience that artists and managers with a clear vision tend to be the most productive. Lastly, a warning for ‘super-smart solutions’. Although there are great opportunities to reduce tax, I would recommend some scepticism. When it sounds too good to be true then that is often what it is.”
Åsa Sandberg (director, CC Young & Co Sverige AB)
“I would say to surround yourself with good advisers, including accountants, who have experience and understanding of the industry and who have your best interests at heart. So not necessarily the cheapest! And ask questions so that you come to an understanding yourself. Artists and managers should be making their own business decisions, but should be guided by top quality advice.”
Paul Makin (director, Dales Evans & Co Limited)
“Never just focus on the fee that’s coming in as that’s not what you have at the end – make sure you know what the net amount to you is – that’s the figure after all the costs from the commissions and taxes and everything in-between. There is a massive difference between these amounts and if you think you are earning the gross figure you are going to get into a real mess.”
Charlotte Harris (partner, Harris & Trotter)
“It’s important that artists and managers look ahead and have a grasp on cash flow. If we are to do our job well in running their business, we need to be in the loop on what their plans are, both business and personal, to help them achieve their goals. Communication is key. Also, get a decent tour manager.”
Jo Ewers (director, business management, Gelfand, Rennert & Feldman)
musicweek.com
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