Do You Need An Accountant If You're In The Music Business?

Music Business 101: Should I Hire An Accountant

When it comes down to the music business, most people would agree that financial resources are vital to artist success. This formal agreement ends typically when it comes down to best practices. On the other hand, some people would agree that you should hire a public accountant or bookkeeper.  On another hand, some musicians believe that they should manage their own finances. While both of these opinions have valid arguments, we wanted to put them side-by-side and see which method might be the best for you. To achieve this, we have partnered a team of public accountants and local artist to see which finance option is the best for musicians in 2019.

Give yourself a few minutes to explore the pros and cons of hiring an accountant to help you manage your finances vs. doing it yourself. Once you're done, tell us what you think.

Are you ready? Let's get started.

Should Musicians Hire An Accountant To Help Them File Their Taxes

International taxes and state taxes can be complicated for musicians without a background in tax accounting. Aside from crunching the numbers, tax laws can affect the way musicians conduct national and international tours. For example, international taxes are shaped by different laws making it difficult for artist and artist managers to manage their own accounting processes. Furthermore, state tax laws also have their own rules and procedures. Failing to meet these IRS guidelines can lead to an artist facing severe tax penalties. Therefore a certified public account with a background in national and international taxes is a valuable asset to have on hand as an artist. Not only will the right accountant help you stay tax compliant, but an accountant will also help you save money and grow your business.  If you're an artist, hiring a CPA as a tax accountant is a smart decision.

On the other hand, managing your own taxes is great for when you're just starting out. However, as you're music business begins to grow, you will need to hire an accountant to help you with making deposits, bookkeeping, and writing checks to pay expenses. Your account can also help you negotiate contracts that minimize your royalties because of taxes.

Should Musicians Hire An Accountant For Bookkeeping

When it comes down to bookkeeping, most musicians can run their own bookkeeping. Quickbooks is a useful tool for managing your own books. However, it can be difficult if you're not familiar with how to set up QuickBooks and run it.  Another solution is keeping track of all of your receipts. However,  it can be a hassle to gather all of your receipts during tax season. Nevertheless, managing your books is an easy task if you have the time to do it.

If you don't have the time to manage your own books, hiring an accountant is a smart decision. In essence, teaming up with an accountant can help you focus more on your music and less on the books. Your accountant should help you start organizing, make deposits, send out checks. An accountant can also help you manage your payroll and employee taxes.


All in all, an accountant is a valuable resource to have on hand. However, if you're just starting out, there are a wide range of tools to help you manage your own finances. But as your business grows, and you need to delegate more of your responsibilities, you should consider finding a certified public accountant to help you navigate the financial aspects of your business.