Music Industry Accountants, CPA

We speak on a variety of music industry topics including inventory management, retail store management, succession planning, and more. As a musician, your income looks a lot different than your average accountant may have familiarity with. For example, when the Tax Cuts and Jobs Act (TCJA) went into effect on Jan. 1, 2018, it made some sweeping changes to the tax code. This made filing taxes more complicated and required substantial (and potentially unproven) updates to tax filing programs. We’re a flexible accountancy firm who simply refuse to believe that one size fits all. On the contrary, as contractor accountants, we have accommodated the needs of countless professionals and helped them to handle their finances, whether they’re sole traders or own a limited company.

• Kingan is an enrolled agent with the IRS and a licensed tax consultant in the state of Oregon.
• You can write off band expenses on the partnership tax return and personal music-related expenses on your personal return.
• We speak on a variety of music industry topics including inventory management, retail store management, succession planning, and more.
• It is aimed at small businesses and includes integrations with various other business tools.
• We’ll work with your manager to handle budgets, business management and administration throughout the tour.
• Can a drummer write off expenses related to their music if most of their income is made through non-music related means?

Advantages of Hiring a Tax Professional

Be sure to keep receipts and records of all your income so you can easily document it come tax time. This includes things like music equipment, travel costs, and promotional expenses. Again, be sure to keep accountant for musicians receipts and records of your expenses so you can easily document them come tax time. Once you have a good handle on your income and expenses, you can start thinking about how to best manage your money.

Forms you receive from the people who pay you

Kingan is an enrolled agent with the IRS and a licensed tax consultant in the state of Oregon. Her company, Math LLC, provides tax preparation, accounting services, and financial consulting for individuals and small businesses. Kingan specializes in serving working artists and musicians and has first-hand knowledge of how to best serve their financial needs. Tom Tom got down to business in the following interview to explore the sometimes overwhelming details of finances with Kingan. The Music CPA offers full service accounting, tax preparation, tax compliance and consulting services to recording artists, musicians and bands, recording labels and other music industry businesses.

How Much Does An Accountant Cost In 2024?

This may include setting up a budget, setting aside money for taxes, and setting aside money for savings and investments. By following these tips, you’ll be on your way to better managing your finances and making the most of your music career. As a musician, it is important to understand your financial statements in order to make money in the music industry. Your financial statements can be used to track your income and expenses, as well as to assess your financial health. The first step in interpreting your financial statements is to identify your revenue streams.

The 1040 family (1040EZ, 1040A & – the backbone of your taxes

In addition, if you are age 60 or older, you may qualify for free tax preparation services through Tax Counseling for the Elderly (TCE) and the AARP Foundation’s Tax-Aide programs. We use FreeAgent bookkeeping software at Gorilla, which ensures your business’ finances are streamlined and easy to access from anywhere. You can also access this accounting tool from any device, be it your laptop, mobile phone or tablet. And you don’t have to worry about the confidentiality and safety of your data – FreeAgent uses state-of-the-art encryption to keep your information safe and secure at all times, giving you the peace of mind you need. Get in touch with Gorilla Accounting today or read on to learn more about the fantastic features we offer as musician accountants. After all, we understand that you lead a busy life as a musician and need a quick reply to your queries.

Best Accounting Software for Musicians and Music Industry Professionals

At the end of the year, you will file a partnership tax return (form 1065) and each band member will receive a K-1. You can write off band expenses on the partnership tax return and personal music-related expenses on your personal return. The cost of hiring an accountant varies, depending on your company’s needs and the accountant’s expertise and certification.

• Accountants prepare tax returns with much more sophisticated software compared to the software sold to consumers.
• If you are self-employed and work from home then we can advise you on household costs which can be offset including heating, using a room as an office and phone services.
• We are accountants, who are also musicians, helping entertainers with entertainment industry tax and accounting issues nationwide.
• Jamie is currently an administrator in the Professional Performance Division at Berklee College of Music.
• If you’re expecting royalties, our team can register you with multiple rights societies, making sure your statements are coming through accurately, and calculate royalty commissions due to third parties.
• My recommendation is to only write-off music-related expenses against music-related income.
• Royalties that aren’t related to your primary line of work may also be recorded using Schedule E (see this for details).

Accountants for Actors, Musicians, & More

Accountants prepare tax returns with much more sophisticated software compared to the software sold to consumers. Accountants may also be more likely to get to know your life situation better, unearthing other opportunities for tax benefits that traditional tax software simply won’t explore. AccountMate is desktop accounting software aimed at small to medium-sized businesses. It includes features such as payroll and inventory management, along with various other accounting features. The music industry is a complex business, and figuring it all out as an independent artist can be daunting, but it’s not as complicated as you might think. You just need to know the basics of how the tax system works, and where you fit into it, and make sure you’re always up-to-date with your payments to avoid legal trouble.

• The cost of hiring a CPA also increases the more complicated your return is and the more time that person will spend on your return.
• Accounting software designed for musicians typically costs between $20–$200 per month, depending on the features and services offered.
• At the end of the day, hiring an accountant can start a fruitful relationship with a financial consultant.
• This includes money you make from gigs, merchandise sales, and any other sources.
• They may consider these to be hobbies, in which case expenses are not allowed.

Related Cost Guides

If you’re a musician, you know that music can be a great way to make money. But what you may not know is how to account for your music-related income and expenses. This guide will help you understand the basics of music accounting so that you can keep more of your hard-earned cash.