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Innovatoire
The Artist’s Business Method · Course map

Lesson 21 / 24 · 30 min · preparation time

Know where the money is

Use separate records for spending, money received and money still owed. A royalty statement, a ticket payment and a grant have different conditions and timing. Keeping records from the beginning makes decisions and later reporting easier.

Terms in this lesson

Distributor

A service that delivers recordings to music services and accounts for income under its terms.

Work through it

  1. 1
    Create an income and expenses record with date, description, project, amount, payment status and receipt or statement location. Include platform and distribution deductions where known.
  2. 2
    Enter the real costs and income for your current project. Match them to receipts and statements, and record unpaid invoices separately.
  3. 3
    Read available distributor and society statements. Identify what period and usage they cover. Check missing information through official support before treating an estimate as a payment due.
  4. 4
    Review current UK self-employment record guidance if it applies to you. Add an action to check registration or seek tax advice when needed; this lesson does not decide your personal tax position.
  5. 5
    If selling merchandise, estimate the margin after production, packaging, platform/payment charges, any venue share and delivery you pay. Check minimum order size and cash tied up in unsold stock before placing an order.
  6. 6
    For every agreement that generates statements, record the reporting schedule, allowed deductions, query route, and any deadline to challenge a statement or inspect supporting accounts. Keep copies and raise questions before contractual deadlines expire.

You are ready to move on when…

You can leave an application or outside reply pending. Record the next step before moving on.

Income received / unpaid amounts / costs paid / future commitments / statement dates / questions for support

Resources for this task

Optional videos

Optional watch

HMRC: basic record keeping Video · 2022 · pair with current written guidance
Further reading · Passman chapter references

Optional reading · Passman, 11th edition. Chapter 4: financial oversight; Chapter 12, “Accountings”: statements and checks; Chapters 24–25: merchandise.

Optional reading from the 11th edition (2023). No purchase needed. US legal context: use current UK sources for local procedures.

Deeper explanation · Before a bigger commitment
Selling merchandise

Start with a small, affordable test. Estimate what remains from each sale after production, packaging, payment and selling charges, any venue share and shipping you cover. Calculate how many sales would recover the initial cost. Confirm artwork permissions, delivery, stock storage and the customer’s purchase information before taking orders.

Bandcamp: artist and merchandise guidance ↗

Keep practising. File receipts weekly and reconcile records monthly.

Next: Review the signals that help you decide.

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