Studio Owners and TAX

[Howard Jones]

"Have you read this thread properly? My post pertains to those comments, and are not out of context. What your really saying is you don't agree. Why not just say you don't agree and contradict my post like Otto did?"

I don't see much point in arguing with someone who is determinedly operating from incorrect premises and isn't going to be persuaded by something as irrelevant as the truth. Otto gave you an outline of the background to the various large studio closures but you appear determined to ignore what he said.

There is a useful debate to be had about the profitability or otherwise of audio recording studios but it doesn't centre around what was behind the closure of Sony etc etc. You wrote your comments to give the appearance of having deep inside knowledge. If you did, you would know that Phil Punch at Electric Avenue (absolutely nothing to do with Milk Bar, except for operating out of the old Milk Bar premises) has bookings for a long way into the future and has been around a long, long time as a successful studio owner. Best to ignore his success as it doesn't fit your preconceptions. Tell us what studio you own, please Henry so that we can understand where you are coming from.

It would be interesting to know how business is going for studios like BJB, Megaphon and Alberts/Tiger. These places might be considered to be closer to the kinds of studio operated by people on this forum - the kind of studio that SNJ might become if it went up a level. If we knew that these places aren't profitable or are only marginally so, it would undoubtedly have a bearing on what Adam thinks about his financials.

[Kris]

From a source who uses Tiger quite regularly....

"Tiger can be booked for $600 a day now (plus engineer)"

Not sure of "list" prices but last time I was sourcing quotes for a client, Tiger was quoting me $1,300 a day.

I also spotted Tiger (and Sony) on recent episodes of Australian Idol.

[Jeremy H]

Back to SNJ and tax....

FWIW, and as suggested by some others, do the leg work yourself and get an accountant to lodge returns.

I've been self employed for a lot of years (not in the music business) and initially "tax' requirements were my big head ache.

I've leant this - an incompetent accountant can cost you a lot of money.

I personally hated paperwork, but I learned that there is no substitute for "keeping your own books" - as in get receipts and invoices for everything and write them up yourself. I mucked around with MYOB but eventually I just made up my own Excel spreadsheets and I make my entries there.

In my experience, the cost of accountants only becomes excessive when you deliver them a shoe box full of receipts and bank statements and expect them to sort it out

The best thing about the BAS system is it makes you do this! Originally, it took me two days to do a BAS - now it takes two hours.

Make the BAS/GST system work for you. Do you get a tax invoice when you buy a music magazine or post a business letter or duck down to the hardware shop for a roll of insulation tape? Do you religiously keep those incidental purchase tax invoices and make sure they get included in your BAS calculations? Our beloved Treasurer is betting that you don

[astrovic]

The best thing about the BAS system is it makes you do this!

You don't know how good it is to hear someone actually say that! I work in insolvency, and pre-2000 I often saw small businesses fail because they kept inadequate records. When they finally saw their accountant, their massive tax problem was explained to them and...well, yeah the rest is history. It still happens, always will (now businesses go under because they don't pay their GST instead of/as well as their income tax!), but definitely not as often as before.

John Howard actually spruiked this benefit of the BAS system when he was trying to get support for the GST. Being such an unpopular tax, his comments were drowned out. But I've been quietly saying this for years, just not too loudly cos most people just hate all the paperwork (and don't we all...)

[Henry]

[quote="Howard Jones"]"Have you read this thread properly? My post pertains to those comments, and are not out of context. What your really saying is you don't agree. Why not just say you don't agree and contradict my post like Otto did?"

I don't see much point in arguing with someone who is determinedly operating from incorrect premises and isn't going to be persuaded by something as irrelevant as the truth. Otto gave you an outline of the background to the various large studio closures but you appear determined to ignore what he said.

There is a useful debate to be had about the profitability or otherwise of audio recording studios but it doesn't centre around what was behind the closure of Sony etc etc. You wrote your comments to give the appearance of having deep inside knowledge. If you did, you would know that Phil Punch at Electric Avenue (absolutely nothing to do with Milk Bar, except for operating out of the old Milk Bar premises) has bookings for a long way into the future and has been around a long, long time as a successful studio owner. Best to ignore his success as it doesn't fit your preconceptions. Tell us what studio you own, please Henry so that we can understand where you are coming from.

It would be interesting to know how business is going for studios like BJB, Megaphon and Alberts/Tiger. These places might be considered to be closer to the kinds of studio operated by people on this forum - the kind of studio that SNJ might become if it went up a level. If we knew that these places aren't profitable or are only marginally so, it would undoubtedly have a bearing on what Adam thinks about his financials.[/quote]

I said nothing about Phil Punch or Electric Avenue? Everyone here knows what happened to Milk Bar. The only profitable Studio that closed that I mentioned was Sony which I already conceded. You don't read these posts do you...your the one ranting!!

[Howard Jones]

Tell us what studio you own, please Henry so that we can understand where you are coming from.

[SNJ Studio]

Thanks again for all input.

Jeremy H, this is great advice and I am soaking it all up. You are right, the one benefit of GST is the fact the paperwork is in pretty good shape. I still think GST is crap and has done nothing else for the small business except take 11% of our profits. I think it is bullshit when you get a quote for something and then GST appears on top of that quote, don't scam me just tell me how much I have to pay NOW. I prefered the sales tax.

QUOTE "It would be interesting to know how business is going for studios like BJB, Megaphon and Alberts/Tiger."

I can say this. I just started working with a band who have done a few tracks recently at one of the above mentioned facilities, and have decided to complete their album at SNJ. I have no hesitation that SNJ will blow the production quality out of the water and the band prefers the "grass roots" vibe of my studio.

I wouldn't dream of competing with Tiger - that room for $600 a day is un farking believable and if they hire the room at that rate I may as well get an office job now, what an amzing deal.

I am interested if Phil Punch has estabished himself in this eviable position of having a lot of work and an awesome facility by means of some "hits"? What is some commercially sucessful stuff he has produced? I feel this is the only way to hit the next level - work on something that makes money - all the business plans in the world will not give you the rep that comes with producing a radio hit. Am I wrong, I hope I am because there are few bands that I see with the potential and commitment to do this, waiting for this to happen is a pretty big gamble in Australia, don't you think?

[rob]

ditto to all comments above about handling your own taxation records during the year and letting an accountant do your end of year thing from your carefully maintained records.

I use the free ATO software " E-Record" for tracking my expenses and income. It generates my quarterly BAS statement in about 10 seconds ( assuming i've punched in all my data ). I use an excel workbook for tracking all jobs and generating invoices.
Once a month i sit down and pay all my bills and transfer all my expenses from the "paper in-tray" to E-Record, likewise any income recieved that month is entered. This takes about 1.5 hours.

E-Record allows setting up of your own catagories as well as those it comes preconfigured with. At the end of the year it yields all the catagorised totals that my accountant needs to do both the business' tax and my and my partner's personal tax.
The annual visit to the accountant takes about an hour, we spend about 1/2 hour talking about esoteric german tube mics, 1/4 hour talking about martial arts, and 1/4 hour discussing why i should be making more money. I leave all the data with him and for a total cost of around $350 he sorts the lot out and files the returns.
He's a good guy and figures that since i'm organised he should charge for the time it takes and not take advantage of being a practioner of some black art and squeeze my nuts.

The fundamental trick is to get a system that works for you and to maintain it regularly, my brain would explode if i sat down once a year and tried to collate all my tax data. Once a month is managable.
Somehow find an accountant that you trust and is into what you are doing.

Rob

[rick]

in regard to phils envious postion, phil spent a lot of money transforming a once empty barely used studio into the fully booked machine it is,
he would be the first to tell you things have changed for him dramatically since he moved in , at trafalger street (electric ave mk2 ) , phil basically did all the engineering , as well as everything else, nowadays he barely gets into his own studio with his own clients ( maybe 2 or 3 times a month!)

he has the best recording equipment in the country , and a understanding of how it all works at a microscopic level few people will ever get to
understand ...myself include.

all of booked studios here at the camperdown complex reflect the fact that there is a way for Big studios to chugg along , but it is constantly evolving, the bottom line is
do what you know is right deep down
do it as well as you can
make your clients happy
and laugh about the bills ( but pay them !)

a couple of years ago i was faced with the prospect of running the place entirely by myself ,splitting the building up or letting tom have it.

i could have put anybody in this building ,
wether they had produced big successfull hits was the last thing on my mind

wether they were great people was the first

you should have seen the list of people i had to turn away

but history has shown my decision to be the right one
this place has vibe coming out of the walls now where it was once a dead event

i doubt if you would know too many of phils hits but you should hear the sounds of some of his "misses"
he is a "real" sound engineer

snj
if you really want your studio to jump levels
do not wait around for a hit band - its going to be a long sit in

make you place look as "nice as you can afford to "
then put your rates up
when you get some more money make it nicer .... dont ever stop.
learn how to do the record company hustle ...dont ever stop.
make sure everything always works ..dont ever stop


i am still constantly amazed how much work i get and from how far away it comes in and what a great place i have made here for myself,
i am amazed but i understand exactly who was responsible for the turtlerock evolution

snj - its up to you
not some band that you get to ride on.

[Trent]

[quote="SNJ Studio"]
I heard "no more heavy partying bands will be allowed to book sessions" at Mangrove and I wonder if they would let Slayer do any demo's? I think this is pathetic and they are struck off the creative roster in my mind.[/quote]

try telling that to eskmo joe and matty lovell!!!

just to clear up the rumors, the grove is a regular type functioning studio with major label clients and is booked many months in advance... a healthy business AND a "Big studio"