We were lucky enough to have Lynda Parsons and Jeni Rowney from Entertainment Accounting speak to members at a free online seminar last week, and while we can't possibly capture all the detailed and in-depth information they provided, we do have a few key tips and pieces of advice that we can share here.
The first question you need to ask yourself: are you running a business, or is this a hobby at the moment (and you’re hoping one day it may become a business for you)?
If you’re running a business, good records will always be needed and even if it’s a hobby right now, good records might be useful in the future. There are many ways you could keep track of all your documents but if you're struggling to come up with a system, Xero and MYOB are great tools for record-keeping. See below some key things to remember.
Some key tips:
Practical information:
Don’t set up a company until it is necessary, as you can trade as a Sole Trader or Partnership.
Why? A company is more expensive to run, and there are more compliance costs. But they have their place and when set up correctly can be helpful once you have reached a certain point in your career.
If you’re in a band, you made need a partnership agreement that covers issues such as assets, royalty splits, and what happens when someone leaves the band.
Don’t rush into a management agreement – make sure you can work together first! And make sure your lawyer is different from your manager’s lawyer.
Make sure you have an entertainment lawyer check over any publishing and record deals before you sign them.
And when in doubt, consult an accountant.
Want to know about what expenses you can claim?
Want to find out more about registering for GST?
If you would like to speak with Lynda, or have further questions, please head over to www.entertainmentaccounting.co.nz, and make an appointment.