operating
one of your bandmates to this task.
card – the business checking account
agreement for the band. This doesn’t
Bookkeeping is facilitated by the use
can pay the monthly bill. This is a clean
have to be complicated – but the point
of
out-of-the
way to ensure all band-related expenses
is to document in writing the ownership
box accounting software. It is so ver y
are recorded at the business-level. Save
percentages, how to split the money of
necessar y to track the income and
your receipts. Save your receipts. Save
that band, the intended roles for each
expenses of the band – so you have
your receipts. Dump the receipts in a
band member, and the process for
records for your tax returns, so you
file with the credit card statements.
someone to leave or join the band. This
know how the band is doing, and so
is an important step to prevent future
you can look forward to budget future
disagreements with your bandmates.
projects. If no one in the band has
Ever yone in the band should sign it.
a clue, and you don’t want to hire an
When people leave or join the band –
ongoing bookkeeper – see if you can
document the dates with amendments
sit down with any business-y friend
to the operating agreement. Even the
of yours to talk about best processes.
best of good intentions can be forgotten
If you decide to do your bookkeeping
when
surrounding
internally, appoint one person in the
money come up – it is good to have your
band as the finance point person. If
mutual understanding of the business
one person takes ownership, it will
arrangement on paper.
run much smoother. Even if you do
I
suggest
creating
sensitive
an
issues
If you have created a legal entity for your band and registered with the state and the IRS, you are going to have to file an annual tax return. Hire a tax accountant. You’re not going to like spending the money on a CPA – you’d rather spend it on gas for your next road trip, or to studio time for your next recording. But it really is for the best to leave taxes to the tax experts. Almost as important as hiring a tax accountant – you will want to consider hiring
a
bookkeeper
or
appointing
spreadsheets
and/or
have a bookkeeper it is good to appoint one person in the band as a point of contact, to oversee the process, and to work with the CPA during tax season.
If the bandmates have paid for bandrelated expenses out of their personal funds – make a spreadsheet to total the expenses, an expense report. Give the expense report with the receipts to your finance person and they can cut you a reimbursement out of band funds. Don’t forget: Save your receipts. Save your receipts. Save your receipts. And if you have any receipts for meals/ entertainment, make a note on the back of the receipt about who attended and why it is related to the band. If you ever have to deal with the IRS you will be glad that you did.
Once you appoint this person, consider
Following these simple steps will get
buying them a beer. Their job is integral
you on the right track for running your
to the functioning of your band as a
band like a business. You may be making
business, and it is not as fun as working
music for the love, but don’t forget the
the merch table!
legendar y words of the Wu: Cash Rules
Once you start generating funds, open a bank account for the band. Consider opening a business credit card for the
Ever ything Around Me: C.R.E.A.M. Get the money, dollar-dollar bills y’all. Amy Nicole Wilson
band. When you go on road trips you can pay for travel costs with the business
073 BUZZ by SF Intercom