Accounting payments and auditing
With
Judge JulesJudge Jules explains how record-deal accounting works - the twice-a-year payment cycle, when statements arrive, and what a royalty statement should show you.
What's in the course
46 lessons (1h 6m) · 1 free
01. Accounting
Free lesson1:16
02. Termination
1:29
03. Collection societies and letter of direction
0:26
04. Commission structure
2:32
05. Cross platform-multimedia aspects
0:39
06. Expenses
1:10
07. Key man provisions
1:01
08. A manager's obligations
2:33
09. Post term commission
1:30
10. Should a manager be involved in all aspects of an artist's income?
1:40
11. Term
1:46
12. Should a manager manage more than one artist?
1:24
01. Accounting payments and auditing
You are here2:18
02. Ancillary shares
1:58
03. Artist approvals
1:51
04. Artist promotional obligations
1:50
05. Assignment or licence - what's the difference?
3:17
06. Interplay with publishing
0:51
07. Options
1:39
08. Release commitment
1:26
09. Rights in the artist's name and brand
1:26
10. Royalty types
1:20
11. Territory of agreement
1:54
12. Warranties and indemnities
1:37
01. What are the most important areas of a contract for a new artist?
2:11
02. Is it normal that a music lawyer would meet me and listen to my case before charging me?
1:15
03. If a label, publisher or manager approaches me to sign a contract but I dont have the funds to pay for a lawyer, who should pay the legal fees?
1:20
04. Are 360 degree deals good value for an artist?
1:14
05. Am I still protected when it comes to copyright in the NFT or the crypto world?
0:26
06. Should I be wary of a publishing deal?
1:02
07. What protection exists for artists releasing their own music that don't have access to a lawyer?
1:03
Lesson transcript
Understanding Record Deals and Accounting
In the realm of music, understanding how record deals and accounting work is crucial for artists. Here's a breakdown of the accounting process typically involved:
Payment Schedule
- Accounting occurs twice a year.
- This schedule is usually mirrored in the music publishing world.
- Record labels generally provide accounting within 90 days of the end of June and December.
- Statements are received by artists at the end of:
- March
- September
- Statements are received by artists at the end of:
"Why they couldn't just say that in the contract, I don't know, but that's the way it works."
Royalty Statements
As an artist, you should expect to receive a royalty statement that:
- Explains the calculation method used.
- Provides transparency, rather than just sending a figure stating your earnings.
"It wouldn't really be satisfactory as an artist if you were simply sent a figure saying, this is what you've earned."
Right to Audit
- If you notice discrepancies or find something unclear:
- You have the right to audit.
- Appoint an accountant to review:
- The books
- The contract
Artists often engage in audits for clarity. It is rarely heard of an artist being overpaid in these situations; rather, issues tend to arise from underpayments.
The Nature of Underpayments
- Underpayments are not necessarily sinister.
- Many factors contribute to these discrepancies:
- Peculiarities of individual record deals
- Different royalty rates:
- By country
- By track usage type
Even a small incorrect input can result in significant miscalculations. Thus, the right of audit exists to ensure that record companies adhere to their obligations.
By understanding these elements, artists can navigate their record deals more effectively and advocate for the earnings they deserve.
46 lessons
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Meet your guru
Meet your guru
Jules O'Riordan has over 30 years of experience across the entire spectrum of the music industry. This includes nearly a decade as an A&R for the Universal umbrella of labels, 15 years as a presenter on BBC Radio 1, over 150 record releases and remixes in his own capacity as a recording artist, plus a 30-year career as one of Britain's best-known, globally-travelled DJs (Judge Jules), with over 5000 gigs under his belt, plus extensive experience as an event promoter and artist manager at the highest level.
Suffice to say, Jules knows the music industry inside-out, and his clients regard him as a trusted advisor for whom no legal or business affairs challenge or problem is too large or small.
Jules has been a lawyer for 10 years. His practice takes in the entire breadth of the music-focused entertainment industry. His legal and deal expertise includes management, recording, publishing, distribution and label services, music-based apps, games and tech projects, production deals, producers, featured artists, endorsements, merchandising, neighbouring rights, TV/film scores, live performance, events and venue agreements, plus copyright and rights infringement and many other disputes.
Jules's clients include artists, management companies, record labels, songwriters, event promoters, producers, music tech businesses, production companies, live agents, music publishers and DJs. He has spoken on many panels and seminars including ADE, Brighton Music Conference and AIM events, and has been a guest speaker on legal issues across a number of on and off-line media outlets, including BBC Radio 5 Live, BBC Introducing, Financial Times, The Sun, The Times and Mixmag.
Jules speaks fluent Spanish.
Who better to demystify the contracts and deals every musician eventually faces? In his course, Jules turns three decades of hard-won industry knowledge into plain-English guidance, so you can understand the business side of music and protect your work long before you sign on the dotted line.
