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duos & more -- how do you keep track of money?


pogo97

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quickbooks... ;)

 

In Excel: Just set it up as a multi page ledger...one tab for income, one for expenses, one as a summary [fed by the other two]. Make notes on whether you were 1099'ed (I don't know if they do that in Canadia...but it happens here a lot) so you report the income quarterly if you are running as a business entity.

I did this for years for the band since we pooled the tip money to cover the website, PA repairs, CD manufacturing, etc. Whatever was leftover at the end of the 4th quarter was 'distributed', and we started over.

Now, as a solo, I don't sweat it as much. I can keep track of all of it on a single sheet ...and I'm not a business entity....and I get the 1099s by the beginning of February.

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I bought a no frills version of Quicken a few years back. Although you have to watch the auto complete function, it's pretty handy. I did my own speadsheets for my bands years ago, and it was nice to have the flexibility but Quicken (or whatever it's called now) works for me.

 

I do however use my own spreadsheet for my PA gear, return on investment because that's beyond the scope of my limited program.

 

Of course for a really simple project, you could almost do it by hand, using a general ledger accounting book - if they still make them.

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I played in a duo once. We played gigs and split the pay 50/50. No accounting or book keeping. Paying taxes were up to each of us individually.

 

Bands or duos don't form legal partnerships in my experience. Once a band starts making real money they should form a corp. or other business entity. But local bands around here aren't usually that serious.

 

The only band I was in that was run as a business was owned by the leader. Everyone else was a non-employee side man that got a 1099 at the end of the year.

 

For myself, I have a simple revenue spreadsheet that is divided in columns by each month. The rows are the venues I played for the year along with a Parties row for those private events. I calculate expenses only at the end of the year for tax purposes. Columns are divided by categories such as phone, internet, stage clothes, CDs, agent fees, equipment, office etc.

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Daddy, I've found that filing quarterly isn't necessary as long as the IRS is paid what is due to them by April 15. I used to file extension every year and pay a penalty for not paying an estimated amount before the April deadline.

 

I don't actually have a business account as the business and myself are one in the same. This is more like self employment to me so I file under my SSN. I've had years where music was my sole income, but not many!

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ah, so no llc, incorp or fictitious business statement...much simpler, except for the liability issues.

 

I know of very few musicians that have incorporated. Maybe only one, and he was in a somewhat famous Canadian rock band.

 

I looked into the whole company thing years ago, and found it was going to be too expensive, and too much work. I generally carry liability insurance, but most musicians I know don't even do that. I guess where it gets tricky, is when you have a day job, and you actually have have some worldly possessions that the courts could take away. Most muso's don't have to worry about that!

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I collect all the money, put it in the bank, write a check for half to my duo mate (50/50), and send her a 1099 form at the end of the year as an independent contractor. We file taxes separately.

 

I know some people like to get "leader's pay" but I've been in everything from a duo to a 7 piece show group and we have always split the money evenly - with major band expenses taken off the top first. The only problem with that way is if the band splits up, who owns what? Or do you sell it all and split the take evenly.

 

Back to our duo:

 

She buys for her guitar and synth and I buy my own supplies, and we both deduct the legal amount from our taxes at the end of the year (my sisters are both CPAs so they let us know the legal way to do it, and we do it the right way).

 

Generally if the band needs something, I buy it and deduct it -- But if it is a major purchase, I'll deduct half the cost before paying my partner. This rarely happens as the PA has long been paid for. I probably get the worst end of the bargain, as if we need new speaker cables, the mixer needs servicing, or whatever, I buy them. I could take it off the top with no problem, but if it isn't a big deal, it isn't a big deal.

 

Although she is my wife, we started it this way before we were married, and we see no reason to change it. It's working and we never have a problem. If it isn't broken, there is no sense in fixing it ;)

 

Notes

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Notes, for over ten years for the band I was the 'accountant', and I ran it like anyother business, including issuing the 'partners' an annual report. I know what you mean, though, I never took an extra dime for doing all the bookkeeping...or the booking, logistics, phone calls, meetings, etc.

When our original drummer left to move to Atlanta, I dissolved the LLC, all legal-like and everyone got $. Now we are looking at re-incorporating if business picks up...but the last 6 years...meh...it was easier to just eat the 1099 taxes personally. You are lucky to have CPAs on tap...I'm lucky to have a lawyer on tap ...he's one of our regular sidemen ;)

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Every band needs a mom to remind the others what day practices are, what time to make it to rehearsals, proper attire, etc... In my book, the care and feeding of different musicians, I cover this stating that in most larger bands it is usually a keyboard player or rhythm guitarist that wears this hat with the most frequency...

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Notes, for over ten years for the band I was the 'accountant', and I ran it like anyother business, including issuing the 'partners' an annual report. I know what you mean, though, I never took an extra dime for doing all the bookkeeping...or the booking, logistics, phone calls, meetings, etc.<...>

 

I always figured that each person contributes what they can. In the most successful band I was in, there were 7 pieces. We all did our jobs, one did booking, another dealing with the agencies, another with getting recordings/music, another owned the trailer for the gear transport and so on. I think if you start nit-picking and saying, "But I did the ____ and you didn't do as much" it disrupts the harmony of the band and affects the music. As long as one person isn't being abused and another idling, it all works out. And if one does a little more than another, that's just life.

 

I know that when I used to go out to eat with the guys after work, we divided the check and tip up equally, regardless of who ordered the expensive or cheap meal. I guess if we are going to do that, it doesn't make sense to say, "I paid for the phone calls."

 

While the band is a business, it's like a family business. Everybody puts in for everybody's benefit.

 

Notes

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The first few bands I was in, things were split evenly, but times changed. I was in one band (for many years) that had some hard working people and some very lazy people. We also had key players who demanded more (singers) so people were paid according to their work and dollar draw. The guy that owned the PA, lights and truck was paid for that (it was a $40K plus system). The lead singer was paid more. The guy that helped load the truck was paid more. The guy that did all the sequencing was paid more. and I was paid more for dealing with all the band crazies, agents, musicians union and bookeeping. The people that just showed up and said "when do we get paid" were consequently paid less.

 

 

I currently work in a duo where the "leader" pays me less than what he is getting, and when I do a duo where I'm the featured performer, I do the same. But I do work in some duos where we just split the money down the middle.

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There is more than one right way to do this, and I certainly don't mean to imply that my way is the right way.

 

I've never been in a band with slackers that just showed up and said "When do we get paid". Lucky I guess. I do tend to see your point on that though.

 

But as far as paying the lead singer more than another player, just because he/she is the lead singer goes against the grain (and I am a lead singer). When I'm singing lead, I depend on the band to support me. The cake is just as important as the icing which is just as important as the happy birthday candles on top.

 

As far as I'm concerned, on stage, the audience may perceive one person to be more important than the rest, but as far as I'm concerned, we are all equal contributors and should be paid equal for that.

 

Of course, YMMV

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There is more than one right way to do this, and I certainly don't mean to imply that my way is the right way.

 

I've never been in a band with slackers that just showed up and said "When do we get paid". Lucky I guess. I do tend to see your point on that though.

 

But as far as paying the lead singer more than another player, just because he/she is the lead singer goes against the grain (and I am a lead singer). When I'm singing lead, I depend on the band to support me. The cake is just as important as the icing which is just as important as the happy birthday candles on top.

 

As far as I'm concerned, on stage, the audience may perceive one person to be more important than the rest, but as far as I'm concerned, we are all equal contributors and should be paid equal for that.

 

Of course, YMMV

 

I hear you about the singers, I feel the same way, but here's how it worked in the distant past... In the particular band I was referring to, I would have a meeting with a potential singer. They would quote me a price per gig and I would either accept it or say "keep walking". I found that (in the old days) if the singer had a big enough draw, I could pay for the singer, and then some, just by the club's willingness to pay more for the band. We already had three lead singers in the band, but I found that a dedicated front person allowed us to charge more and play better places - in those days at least.

 

 

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