Decosimo Certified Public Accountants: Entertainment

Decosimo Vaden - Entertainment Services Group

Decosimo Vaden - Accounting for the Music Business

The entertainment industry presents unusual business challenges, and individuals involved in these fields require business professionals who understand their special needs. For peak performance, anyone in a creative discipline must be able to concentrate on his or her talent.

Creative professionals–actors, athletes, musicians, writers, managers, agents, etc.–cannot afford to be distracted by the day-to-day aspects of their lives, including personal, financial and business issues. The experienced and knowledgeable professionals of our Entertainment Services Group can assist immeasurably with these issues, freeing these creative individuals to maintain that essential focus. We understand the special needs and circumstances associated with the entertainment industry and can respond quickly and appropriately.

Business Management

Among entertainment professionals, it is well known that money may not flow in a steady stream from year to year. Our objective is to make certain that income from a good year will carry through a lean one, but achieving this balance requires special planning. All too common are stories of creative professionals who have suffered from poor financial management and inadequate planning. We maintain current, accurate records of income and expenses, pay bills, handle disbursement of funds, and provide detailed financial statements. As individuals, entertainment professionals may face financial situations that are every bit as challenging as those faced by large corporations. We stand ready to serve your needs, from real estate transactions to complicated insurance issues, and all the while maintain complete confidentiality.

Tax Planning

No industry has tax implications quite like the entertainment industry. It is our job to know exactly what the idiosyncrasies are and how we can use them to get the best results for you. Frequent changes in tax laws create new opportunities. With intelligent, careful planning, we try to minimize your overall tax liability. We will work closely with you to analyze, evaluate, and explain the tax consequences of major financial transactions, including production agreements, banking arrangements, and personal service contracts. We can also show you how to maintain financial security through retirement and estate planning. Due to frequent travel and working in multiple states, athletes and entertainers often face filing multiple state tax returns. When a performer gives a concert or an athlete has a game in a state other than his or her home state, quite likely there are resulting tax implications, and a tax return for that state may need to be filed. We can decipher the sometimes-confusing requirements of state tax laws so you can rest assured that all filing requirements are met.

Box Office Settlements

Because the costs of producing a quality show are constantly increasing, it is essential that the artist receive a fair settlement at the box office. We perform box office audits to ensure that equitable settlements are made according to the terms of the contract. We not only verify ticket sales, but also ensure that all expenses related to the performance are authorized and valid and that all percentages are computed correctly.

Concert Tour Accounting

By working directly with all those involved in road tours, we have learned to deal with the special complexities of a touring musical group. With this knowledge, we have developed a unique system for analysis of receipts and expenses incurred on the road and preparation of budgets for future shows, allowing us to project profits from show operations. The system is easily understandable, does not require extensive time or paperwork, and provides an accurate account for all monies spent and received on the road. Further, by compiling a detailed record of all transactions and providing a simple method for retaining receipts, this system assures our clients of the maximum tax deduction for expenses incurred.

Investment Analysis

High-profile creative professionals and industry insiders are often surrounded by friends and associates who are eager to help them with investment opportunities. At Decosimo, we are experienced in dealing with these issues and can assist with analyzing and evaluating opportunities as they arise. We can help you to read between the lines and identify the risks, the expected future cash flow, the tax impact, and any other implications of a potential investment. We don’t make the major decisions for you; but rather we supply you with the requisite information, in easily comprehended terms, for you to make the best decision yourself.

Royalty Examinations

We analyze the details of each royalty statement to verify that the correct rates are being applied to the reported sales and that charges assessed are proper. While most of these procedures can be performed at the artist’s office, we will go directly to the record label or publisher when the need arises and perform detailed audits to further verify that royalty statements are consistent with contractual agreements.

Specialized Accounting Systems

In today’s entertainment industry, an artist or athlete may be involved in a variety of businesses. We have accounting systems that will cover all facets of your operations. Whatever the aspect of business, from office administration to road shows, from publishing operations to souvenir sales, we can develop an accounting system to help you operate efficiently.