As a music composer, you can deduct several specific expenses on your tax returns. These expenses generally relate to the production and promotion of your musical compositions, as well as the maintenance of your professional expertise. They include:

• Costs of producing demos or promotional materials
• Instrument and equipment purchase and maintenance costs
• Music composition software subscription or purchase fees
• Professional membership fees for music composer organizations
• Music reference materials and educational resources
• Travel expenses for performances or professional development
• Home office expenses if you frequently compose from home
• Legal and professional fees related to copyright, licensing, and contracts

Please consult with a tax professional familiar with the music industry to ensure the applicability and validity of these deductions to your specific situation.

Royalty payments represent a type of income received for allowing another party to use your intellectual property, such as patents, copyrighted works, franchises, or natural resources. This income is taxable and must be reported on your tax returns.

From an accounting perspective, royalty payments should be accounted for as income in the period they are received. In terms of your income statement, they will be classified under the 'Other Income' category. It's important to keep accurate and detailed records of your received royalties to ensure proper accounting and tax compliance.

Handling royalty income can be complex due to the tax considerations and potential deductions involved. It's highly recommended that individuals or companies receiving significant royalty payments seek the assistance of a bookkeeper or accountant. This professional can ensure royalties are properly recorded and accounted for, and can assist with relevant tax planning and reporting requirements.

Managing your accounting for music composing projects and contracts can be particularly complex due to variables like royalties, contract payments, and additional expenses. Thankfully, Bench Accounting has a multifaceted solution for you.

Our bookkeepers are skilled in tracking income and expenses for creative professionals including music composers. We can keep track of your various contracts, royalty payments, project-related costs and more, so you can focus on your composing.

We’ll provide you with financial reports tailored to your needs, to help you understand your cash flow and make more informed decisions. Plus, we can even handle tax filing for you, ensuring everything is up-to-date and in order.

To get started, simply reach out to our team and we’ll guide you through the next steps. We look forward to being part of your financial journey and helping you manage your bookkeeping needs so you can continue your great work in the music world.

Nope! All bookkeeping is completed in-house.

Your bookkeeper will be your main point of contact, but at times you might hear from another member of your team. This is usually when your bookkeeper goes on vacation, is sick, or otherwise unavailable.

We handle the bookkeeping for you but sometimes we’ll need your input, especially at year-end. On average, expect to spend 15 minutes each month answering questions for your bookkeeper, or uploading supporting docs.