We continue on our series on representation with a focus on business managers.
Mailbag
From Scott
Hey guys hope all is well in drummer talk land. First off I got to say I love the podcast! I just recently started listening maybe two weeks ago. I’m listening in semi reverse order which is fun because to hear Troy’s excitement to bring stickers to Pasic or Namm (which ever it was), comes after hearing about him forgetting to bring them. It’s like reading a suspense novel backwards lol.
Secondly, Troy please please please please do a segment on cutting snare beds. I have a few snares that I received from a now defunct custom company, on which I never thought the snare beds were correct and have had nothing but trouble with my snare wires seating properly. I loved the bearing edge segments due to how well you clearly described the tools and the process and I think hearing from you on what to do with snare beds would be enlightening.
Thanks very much guys for reading this and taking it into consideration. Keep up the great work and thanks for providing the drumming community with such a great resource. ~Scott “skipper” Gentry
News
6 Tips for a Manageable Drum Set
Topic Notes
The role of a Business Manager in your career
A business manager is like a chief financial officer of your company. The key scope of the business manager handles all financial issues such as investments, financial planning, bookkeeping and accounting, asset management and administration, tax services, insurance, and royalty examinations.
Bookkeeping and Accounting
Some of the services of business manager does paying monthly bills, collecting royalty earnings, depositing money and monitoring your bank and credit accounts for discrepancies.
Some of the bills a BM my pay from your accounts
Rent or mortgage payments
Vehicle payments
Credit card bills
Personal services such as housecleaners, personal trainers, gardeners etc.
Insurance Bills, utilities such as water, power, sewer, and Internet
Touring Services and Financial Controls
Transportation cost such as airfare, tour bus etc.
Lodging such as hotels
Salaries and Per diem for band and crew members
Insurance for liabilities, missed shows breach of contracts etc.
Logistics such as trucking and transport of gear, sound equipment and stage needs
Fees and commissions for Agents, other managers, promoters, etc.
Fees for productions costs and rehearsals
Asset administration
Shopping for big ticket items such as Homes, cars, expensive gear etc. Your BM will let you know what you can afford or if certain items qualify for tax breaks, incentives and other tangible ways to be a wise steward of your financial resources.
Tax planning
This is broken into 3 main categories
Indemnify the appropriate business entity: Ie inc. LLC, S corp etc.
Planning and handling of Payroll and income taxes: IE w-2, 1099 etc. Also IRS audits etc. Meet with IRS and give over all records.
Estate planning: Wills and living wills, Trust funds, Life insurance, Gifting strategies etc. Generally BM’s work with estate attorneys
Auditing Rights
When, How, Time frames, records requests etc. You must discuss how you can request an audit. It’s not personal everyone in Hollywood audits everyone else. It’s a way to gain an understanding of what is really going on.
Power of attorney and limited Power of attorney
Never Grant Full Power of Attorney: with full power your BM can purchase houses and large items without your knowledge
Limited power of Attorneys grant your BM to represent you in IRS audits and prepare checks for you to sign
In some cases set up a petty cash system and make sure you look at it. In some cases add Lower limit credit cards. Amex is a favorite for this one.
Payments to your BM
Retainer: Generally from 500-5000 per month. depending on the success and monitory flow of the client.
Hourly Fees: $20-$1250 per hour depending on the service. Bookkeeping vs Forensic accounti[...]
