Festival management and finances artist fees

The financial handling of a festival is a complicated process since there are hundreds of different sources of incomes and hundreds of small payments to small companies, artists, stuff, technics and others. Also, many festival related payments feature special circumstances and methods of payments, which are not many times compatible with the accounting formulas of the accounting software’s (in Finnish = kirjanpito-ohjelma) and the ways of the accounting companies. Added to this, rules and regulations for taxation take very poorly into account the life of the musicians or event managers and accountants.

Of course the easiest way for both parties is simple billing between them and this is what mostly happens however, the thing which makes this a tricky question many times is that festival production needs many services already way before the actual event, but many times only a small share of the money needed to put up the whole thing is already there the main finance being the quests who buy the tickets and use their money on the festival area. Many event give large efforts on their pre-sale just for this reason. And of course there is also the more convenient way of arranging the event when knowing roughly exactly what size the viewers is.

Some headache is given by the artists with their payments sometimes. Most of the recording artists have a business through which they’ve been billing their performance fees, or they’ve a manager who the billing for them after which will pay charges for the performers. But in these times of do it yourself culture many musicians are determined to deal with these firms (as much other people too for instance the work of a record label) themselves, mainly to keep the share of a manager, PR, reserving agency or some other middleman on their own. The most common being the paying of the fee in cash and getting a receipt on spot in these cases you can come across with variety of ways of payments. This makes however very difficult to keep the records up to date during the event and since needs a handling that is precise the records.