Being in the music industry comes with its own set of challenges. As artists, musicians, and creative minds, you should focus more on what you do best. That means leaving the pain of royalty accounting challenges to the experts.
If you’re handling your books in-house, you could be running into costly pitfalls. We are here to tell you that there’s a solution to overcoming some of the significant challenges of royalty accounting management. Here are three common pain points and how you can overcome them:
1. Time spent calculating and delivering royalty payments
One of the most common ways to spend unnecessary hours of your time is by calculating and providing royalty payments to your clients. Recent studies have estimated that nearly 20-50% of royalties owned by digital music services don’t get paid out correctly.
After organizing your clients’ royalties and delivering the payments, you also need to ensure those payments are going to the appropriate parties. Utilizing enterprise-level software that simplifies your royalty operations will ensure you aren’t misallocating funds and save you time.
With the right software and help from an experienced accounting team, you’ll reduce manual error, quickly integrate key financial data, and gain real-time perspective on your billing and invoices.
2. Huge amounts of data received from streaming platforms
Your company has so much information and data from streaming media and music services. You may have data coming in for a single track that includes the contributors, right holders, royalty splits, and the list continues. Keeping up with your clients can become a challenge if you don’t have a solid strategy for data management established.
There isn’t a universal way to solve this problem, so you must get a little creative and think outside the box. Invest in your business through automation and royalty-specific accounting software capable of handling the complexities of the data-driven music industry.
Using a system with the right functionality and getting professional oversight from industry experts will help guide you into a thriving, record-breaking year.
3. Difficulty delivering transparency to clients in a shady industry
Your goal is for your clients to trust you. Showing them that you conduct your business the right way can be a challenge. Not everyone is as honest with their clients, and you need to show that you want them to reap the rewards of their contracts.
Creating clear and accurate reports to communicate transparency to your clients and stakeholders will justify the promises you plan to deliver. With the right royalty accounting software, fast and accurate reporting will take your business to the next level and give you that extra edge to bring in more clients and secure more contracts.
If you’re looking to talk with a trusted financial partner that understands your industry and can help you stay competitive and profitable, sign up for a free discovery call with Lescault and Walderman. Learn how our services can benefit both you and your business.