In life there are two things which are certain and that’s death and taxes. So one way or the other when you set up your record label in South Africa you better not procrastinate to hire an accountant unless you are the accountant yourself!
The South African Revenue Service (SARS) is responsible for tax collection in South Africa and you are pretty much encouraged to get familiar with them when the money starts rolling in from your record label activities.
Hence the purpose of regularly recording all financial transactions carried out by your record label makes your life easier in the event that the South African Revenue Service demands to audit your books.
Sometimes artists on your record label can also demand to audit their royalty statements. Now the best way to prepare for such scenarios is to make sure your keep separate accounts for each and every artist on your record label.
Either way you are better off hiring an accountant because there is no way you can operate a record company were you are trying to be the executive, the accountant and worse still trying to be all up in your artist’s videos. Hey, wena relax!
NOTE: In a nutshell hiring a certified accountant will get you sorted both ways from managerial accounting and financial accounting. But just remember SARS will mostly be interested in your record company’s financial statements and that’s done through financial accounting NOT managerial accounting.
- The Importance of Financial Reporting When Running Your Own Record Label
- How to Start and Run Your Own Record Company in South Africa
- Music Business: What is a Record Label?