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Knowing me, knowing you.

9th Feb 2014
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Welcome to my first blog for AccountingWeb. I’m kicking off with a theme that is certain to re-occur more than a few times in these posts. Please feel free to comment…just be gentle (at least the first time).

New Year over. Tax return frenzy completed. Dust settled. How about a nice trip to the South of France? All right for some! Well, yes, it was, but for the sake of business, honest!

I had the opportunity to attend this year’s MIDEM – the music industry’s annual global jamboree and networking extravaganza in Cannes. It was networking with knobs on and, trust me, there was some serious business being transacted at all times of the day and night everywhere you looked.

So why am I telling you this? Because a theme emerged that I believe is critical to the future of accountancy: the digital revolution means a different approach to understanding your clients.

Much of the discussion at MIDEM was around the impact of digital and the increased presence of cloud-based label services – that’s the ability of individual musicians or producers to buy the digital machinery of a major record label off-the shelf and do it themselves.

Technology and the internet has brought a sea-change to the music industry. Bedroom musicians, with a portable studio, are now having to set up their own limited companies to handle global sales. In some cases, the music itself has shifted from being a major profit centre to a promotions tool used to shift tickets and merchandising or create synchronisation opportunities (where music is used for advertising, TV programmes or film soundtracks).

It’s a fantastic revolution but, where accountants with music industry clients previously only really needed to know about the tax treatment for musicians’ expenses or handling royalties from CD sales, now they are having to run to keep up.

Musicians require specialist business advisors. They need accountants who not only empathise with their talent for producing a good tune, but understand all the implications of being an artist in a digital age. And they are not alone. The same revolution is happening across most industries and service sectors.

So, here’s a suggestion. Take five minutes away from the spreadsheets and VAT returns and think carefully about your core clients. How many of them have had their industry or individual business transformed by IT and digital services? How well do you really understand the implications of that on their business? Having worked with them, do you have more specialist sector knowledge than you realise? If so, rejoice – you have something that makes you stand out from the crowd. If not, perhaps it’s time to start learning to be different. It’s about you knowing your clients and them knowing you…aha.

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By tom123
09th Feb 2014 18:05

Welcome to the blog section

Welcome to the blogging section, looking forward to reading more,

 

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By The 5-50 Coach
10th Feb 2014 08:39

Great idea about the importance of using specialist skills. Thanks for a great first blog.

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By BobEdwardsLandmark
20th Feb 2014 09:19

Brilliant first blog

Insightful, and for a change based on experience not opinion. Can't wait for more.

 

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