BUSINESS
Andrew Turner is a business manager in Toronto with the firm Turner Business Management and works with such acts as Tyler Shaw , Ryan Hemsworth , Kaytranada , DJ Grandtheft , Stephanie Marley , and Chef Matty Matheson , among others . www . turnerbusinessmanagement . com .
By Andrew Turner
Do You Need a Business Manager ?
Every week or so , I receive a call from an artist enquiring about business management . They are curious as to when they need to evolve from their trusted bookkeeper to a business manager .
The short answer on when to move to a business manager is when your bookkeeper can no longer provide all the services you need or answers to the questions you have .
What are these additional services a typical business management firm provides ? Below I will outline a suite of services . Not all firms will provide all of the services , but all will provide the basics .
Daily Financial Services Cash flow is the lifeblood of any business and effective management of cash flow is key !
• Running out of money on tour is definitely a major issue . Properly setting up a tour manager prior to the start of a tour is essential .
• Daily financial banking – Statement review and reconciliation .
• Revenue collection from all sources .
• Bill payments .
• Cash flow planning and management .
• Budgeting and reconciliation – Tours , recording , merchandise , video , etc .
Entertainment Revenue Some but not all firms will track your revenue streams for you . Trying to keep track of every revenue stream while maintaining a busy schedule is next to impossible . A full-service business management firm will review all of your contracts to ensure you are being paid on time and in accordance with the deals you have in place .
• Contract review and administration .
• Endorsement tracking and collection .
• Royalty tracking and collection .
• Merchandise and tour revenue review and collection .
Tax Planning & Preparation Taxes are definitely one of the least glamorous but most sensitive areas when it comes to business management . Not only preparation of
62 • CANADIAN MUSICIAN personal and corporate tax returns , but tax planning is a key service to look for when choosing a company . Incomes vary dramatically in entertainment and sports and forecasting that income can assist in minimizing and deferring taxes .
• Tax planning to minimize tax liabilities for both corporate and personal .
• Preparation and filing of show taxes in Canada and internationally .
• Year-end preparation and filing of corporate and personal taxes .
• Assistance when exercising your “ right to audit .”
U . S . Tax Planning & Preparation U . S . and international taxes along with their respective withholdings are a key area of expertise your business management firm should have a good handle on . U . S . and Canadian tax deadlines are different and securing all the proper paperwork to file on time in the U . S . is a big issue . Without the U . S . filing , Canada can end up being late and drawing interest and late filing fees .
Professional Insurance As artists and their tour guarantees grow , insurance becomes a key area of concern . Did you know you can insure against non-appearance or cancellation ? If a crewmember becomes injured abroad while on tour , a major lawsuit can occur . A full-service business management firm should be able to assist in securing the proper insurance for you . Some key areas to explore include :
• Commercial
• Workers compensation
• Personal liability
• Artist liability ( commercial general liability )
• Equipment and gear coverage
• Third-party property damage
• Pyrotechnics
• Foreign general liability
• Foreign workers ’ compensation
• Comprehensive personal liability
• Cancellation insurance
• Non-appearance insurance
Revenue Growth Consulting
This last area is not that common but can be a great asset to an artist whose management is busy breaking the act and handling day-to-day activities . Some firms will partner with you , your management , and your team to help maximize sponsorship , brand , and new revenue growth opportunities . Areas they can assist in include but are not limited to :
• Engage or support negotiations and relationships with brand partners .
• Assemble a team to help produce and / or support a major brand project .
• Manage the time-consuming day-to-day aspect of the project so you don ’ t have to take care of revenue collection from all sources .
• Manage bill payments and revenue sources .
• Support and advise on cash flow planning and management .
• Provide follow up client reporting and reconciliations .
Wealth Management And last but certainly not least ! Planning for the future is critical for professions that accumulate large quantities of income in shorter time frames , especially when the cash flow is uneven and unpredictable . A good business manager will help you grow and plan for your future , minimizing your stress so you can focus on what you do best .
• Creating a comprehensive personalized financial and wealth plan
• Providing independent investment advice and portfolio oversight .
• Addressing risk management issue and income / asset protection strategies .
• Engaging retirement , estate , and family financial planning matters .
Conclusion Hopefully the above list of services helps clarify what you should be seeking in a business manager . Bookkeeping and accounting are key fundamentals , but much more is needed as acts begin to grow and tour internationally . Tax planning and international tax waiver expertise are essential along with insurance , revenue tracking , and wealth management .