Tour Accounting
Financial management and reporting for live performance touring activities.
Definition
Tour accounting manages the complex finances of live performance touring, tracking revenues (ticket sales, merchandise, VIP packages), expenses (venues, crew, travel, production, per diems), and settlements across multiple shows, currencies, and arrangements.
Professional tour accounting provides real-time profitability visibility, ensures proper payments to all parties, and documents transactions for tax and audit purposes.
Why It Matters
Touring involves significant financial complexity and risk. Without proper accounting, profitable tours can still create cash flow crises, and hidden costs can transform expected profits into losses.
Transparent tour accounting also prevents disputes between artists, managers, and promoters by clearly documenting revenues and expenses.
Examples in Practice
Tour accounting revealed that an artist's agent fee on gross revenue (before expenses) made certain shows unprofitable despite sellout attendance, leading to contract renegotiation.
Real-time financial visibility allowed tour managers to adjust routing mid-tour when actual costs exceeded projections, preserving overall profitability.
Comprehensive tour accounting documentation supported a dispute resolution when a promoter claimed underpayment, proving the settlement was correct.