Entertainment Industry Accountant

So what have we learned about the financial demise of Nicolas Cage, and his entertainment accountant?

You hear the story all too often, High profile entertainer goes broke. Or Entertainer blames entertainment accountant for bad tax advice. The first question the public asks is how? Doesn’t this entertainer earn $20 million a movie? That is more than ten people make in a lifetime. What did his entertainment accountant do with it? Steal it? Invest it in speculative investments?

I have worked as an entertainment accountant, aka business manager for entertainers for over twenty-five years. The public doesn’t see the view of the entertainer that we do. In fact, the persons usually in the inner circle are the entertainment accountant, attorney, agent, and publicist. Remember, the artist’s image is everything, and if that image conflicts with reality, something is bound to surface at times. Look at Charlie Sheen, or Tiger Woods. Their personal inequities surfaced because it is extremely hard to cover. The same is for the finances. A good entertainment accountant knows when a client is spending beyond their means. I have seen entertainers’ buys real estate all over the world, planes, boats, and rare art. As an entertainment accountant, my position is sound the alarm when a client nears a crucial financial point. That alarm gets louder as their situation gets more desperate.

So, did Nicolas Cage’s entertainment accountant sound the alarm? We’ll know soon enough from the litigation unless the court records are sealed. Did the entertainment accountant contribute to such a travesty?

So what should you learn from this? Well, many of you may not be celebrities, so you wouldn’t hire an entertainment accountant. But, you can act as your own accountant by looking at your financial situation objectively. That is what entertainment accountants do. We don’t look at the things that a client wants, but at the relationship between what the client earns and spends. We also look at the future, and how they will survive when they aren’t hot anymore.

So how to you start?

  1. Act like your own entertainment accountant. Look at your credit cards first. Are you paying them off each month? If not, cut them up live off cash at least for two months. You will see what you really need to survive in your budget.
  2. Are you paying your taxes concurrently? One of the biggest worries of entertainment accountants, is to come to the end of the quarter, or year and not have any funds to pay taxes because the client has spent it. If you are self-employed, think about paying your taxes weekly. You can do this by opening a separate bank account.
  3. Are you using your house as a piggy bank? As an entertainment accountant, the first thing I look at when a client needs to borrow money from their house is why, and what return should we expect. Don’t borrow to spend lavishly. Have a plan on paying it back.

So, if you cannot afford an entertainment accountant, or even not an entertainer, be smart. If you do need help, we provide the stability you are looking for. www.ricknorriscpa.com.

 

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