Business Management Services

BUSINESS MANAGEMENT SERVICES

“Business Management” is an all-inclusive term for services that do not normally involve tax, audit, or tour accounting.  The services provided include:

  • Preparation of monthly unaudited personal financial statements including balance sheet (and schedules), income statement (month and year to date), four (4) month income statement trend analysis, and schedules of monthly cash flows.
  • Preparation of monthly unaudited corporate and/or partnership financial statements including balance sheet (and schedules), income statement (month and year to date), four (4) month income statement trend analysis and schedules of monthly cash flows.
  • Insurance review and procurement for your personal and corporate needs.  This includes reviewing and “bidding out” policies for your home, auto(s), personal liability, umbrella, life, disability, estate, and corporate liability and equipment insurance.
  • Cash flow budgeting is used to determine what cash can be invested or conversely, what cash will be needed from investments to fund your current operations.
  • Investment review. Selection of competent investment professionals qualified to select individual equity and debt (bond) issues.  Analysis of your current strategy and holdings with your investment professionals, and review of your strategy in light of your cash flow budgeting results.
  • Business plan review.  Analysis and review of business plans for ventures such as restaurants, record labels, clubs, etc. in which you may be asked to invest.
  • Payment of your personal and corporate payables.  We will receive your bills, verify them as proper and pay your personal and corporate vendors in a timely manner.  Your checks and records are safeguarded by a state of the art computer system that generates checks on demand once a variety of electronic security features have cleared.  The partners Scott Adair and Phil London, will be the only individuals authorized to sign or transact on your account.
  • Estate planning.  We will consult with your attorney and/or refer you to one as your estate planning necessitates.
  • General consulting. We have the capacity and the expertise to advise you on a broad range of strategic and tactical business decisions.
  

TOUR ACCOUNTING CAPABILITIES

London & Co. provides a full range of services for touring artists.

Our staff performs all of the appropriate budgeting, execution, auditing and reporting functions to ensure that a tour has the potential to be financially successful.  We do all these functions in conjunction with management and your agent and most importantly keep the Artist informed throughout the process.  We have developed a number of proprietary systems that allow us to do this with great efficiency and thoroughness, and that enable us to link expenses and your ultimate profitability to specific performances and/or venues.

In clear, easy-to-understand format, these reports quickly identify:

  • The cities and venues that were most profitable
  • Expense categories that were above or below budget
  • Salary and per diem expenses
  • Whether contracted guarantees were met
  • And most importantly, the net profit after all tour expenses.

Our specific tour-related activities include:

Tour Budgets

We are capable of preparing multiple tour budget projections based on itinerary and production requirements.  Each budget can be designed to specifically vary the gross income while also varying the production costs (i.e., sound and lighting, the number of trucks, buses, drivers, crew members, etc.)

Vendors 

We review and negotiate any and all vendor contracts, such as sound, lights, buses, trucks, etc.  We set up a weekly payment schedule to ensure timely payments to all vendors, and review vendor performance throughout the tour in conjunction with your tour manager.

Tour Manager 

An initial set-up is conducted with the tour manager.  This includes interviewing and selecting candidates (if required) and reviewing the tour manager’s on-the-road reporting capability and how these systems will coordinate seamlessly with London & Co. systems.  We maintain daily contact with the tour manager by telephone, facsimile or email, to keep involved with the “feel” of the tour and to stay on top of all developing issues.  Our internal records are updated and reconciled to the tour manager’s road reports on a weekly basis. 

Insurance 

Quotes are obtained for general liability, non-owned and hired auto, umbrella, domestic and foreign workers comp, pyrotechnic, non-appearance, equipment, etc., to ensure adequate and economical coverage for the entire touring cycle or individual tour.

Payroll 

All tour employees execute deal memos clearly spelling out their term of employment and the at will employment relationship with the artists touring corporation.  We set up weekly multi-state/jurisdictional payroll, with a direct deposit option, for all employees and principals, and deal with all payroll tax issues, etc.

Tax Issues

We notify, and negotiate with, foreign, state and local tax authorities as needed, to minimize or if possible to eliminate taxation on guarantees and overages.

Tour Support

Our office, in conjunction with management will obtain label approval in advance of the tour for the required tour support and will invoice and ultimately obtain the necessary tour support from your record label.  This is frequently an integral part of the tour budgeting process.

Agency Review

Our professionals monitor and review agency statements for commission accuracy and for timeliness of guarantee deposit releases.

Tour Reports

All London & Co. tour reports are designed to show profit and loss at each venue, as well as an overview of the entire tour.  These reports are reviewed with the principals and concerned parties both before, during and after the final date of the tour to ensure that all tour related income and expenses have been accounted for, and to assist in proper budgeting for subsequent tours or tour legs.  In addition, we have the ability to prepare detailed mid-tour projections and budget to actual variance reports on any tour expense category.

 

TAX CAPABILITIES

The key objectives of an effective personal and corporate tax strategy can be summarized as comprehensive planning and expert compliance in order to reduce your tax liability to the minimum amount allowable.  We approach all of your transactions from a tax perspective; believing that effective tax planning is performed not once or twice a year but on a daily basis.  We will represent you on a worldwide basis by:

  • Ensuring that all tax considerations are properly evaluated when business decisions are made.
  • Minimizing global tax payments to maximize cash flow.
  • Monitoring the numerous issues related to foreign income, federal and state income, sales, payroll and other taxes.
  • Other specialized tax issues which may affect the client, such as the Alternative Minimum Tax or profit recognition.

London & Co. professionals routinely provide all of these services to our clients, as required.

We audit recording agreements and other contractual arrangements that affect a performers income.

 

AUDIT CAPABILITIES

London & Co. offers a full range of audit capabilities, to audit recording and publishing agreements and other contractual arrangements that affect a performers income.

London & Co. will perform “desk audits.”  During a desk audit we verify allocations, compliance with the overall contract, recoupable expenses, “sync” and master use license payment receipts, etc., on each statement received on behalf of the artist.  This service is performed under our 5% arrangement and is routinely done at the beginning of our relationship to bring your recording and publishing records up-to-date, with additional updates each time a royalty statement is received.

Auditing the underlying statement’s gross revenues and recoupable expenses is done at the record/publishing company level on the gross numbers that make up the starting point for the royalty/mechanical reports.  This work is performed on an hourly basis and is usually provided to you via outside contractors whom we consider to be experts in the field of record company audits.

 

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