The entertainment industry is all about passion. Artists are passionate about their work. Fans are passionate about their favourite artists. The media reflects that passion with news stories and articles. The whole thing seems to spring from the human heart with effortless ease. However, ask any artist and they will tell you that the process of bringing great art to into the world is far from effortless, and even when you only have one artist creating, they are part of a team dedicated to bringing audiences the very best. Some of the least visible but most important members of any artist's team are the experts in entertainment accounting who keep everything moving along by managing the financial aspects of the industry.
What Is Entertainment Accounting?
Like any other branch of accounting, entertainment accounting is all about finances. Creating art requires money. It also generates money. Anyone with any experience in business can tell you that money isn't always simple to manage. Someone needs to keep accurate and details accounts of where profits come from and how money is spent. An accountant is also responsible for performing audits, maintaining legal standards and handling charitable donations.
Who Benefits From Entertainment Accounting?
The most obvious answer would be the artists. Many artists are wonderfully talented in their chosen field, but have no particular talent or interest when it comes to managing money. Others simply recognize the benefits of letting professionals do their job. Managers also benefit from hiring an entertainment accounting specialist to help them maximize profits and avoid financial trouble. Writers and producers frequently seek financial help as they try to produce quality entertainment with the budgets available to them. In sort, anyone with ties to the entertainment industry can benefit from accounting help.
Royalties, Audits and Accounting
A major source of income for a successful artist is the royalties they are paid after the sale of their work. Unfortunately, royalties can be somewhat complex to handle and can require auditing to make certain that they are being paid correctly. Royalty audits are a large part of the field of entertainment accounting. Human error (and, unfortunately, human dishonesty) can but a damper on an artist’s success when it cheats them of their royalties. An accountant has the resources and the expertise to make certain that artists and their teams are receiving the money that they earned by sharing their talents with the world.
Maximizing An Entertainer's Profits
There is more to entertainment accounting than simply managing the money that is already present. A skilled accountant can take an honest look at an artist's and their team's business practices and spot places where money is leaking through the cracks when it doesn't need to. They can also point out opportunities that an artist's team may have missed. All in all, an accountant can bring in more than enough money to cover the cost of hiring them. An accountant's passion is money, and an artist will understand that love, dedication and commitment to perfection better than anyone else.
Miller Kaplan Arase LLP offers comprehensive and customizable entertainment accounting services for clients who are specifically invested in the media industry, from entertainers and artists to high net worth individuals. For more on accounting in entertainment, visit Experience.com.