Contractual reporting requirements to profit and/or contingent compensation participants such as Producers, Artists and other Third Parties can be complicated based on various contractual terms that may apply and keeping up with compliance can be time consuming. You do not want to be in a situation where you are behind on your reporting requirements with your valued customers, which can potentially damage your business relationship or even worse, misinterpret a contractual term and end up over paying a participant. We can keep you in compliance and maintain accurate calculations with your third party reporting obligations.
Before a contract is executed, we can estimate what the third party cost may ultimately end up being based on your ultimate sales and expense projections, so you can determine your potential costs for a particular production, enabling you to make adjustments, where needed.
Detailed statements will be prepared on a timely basis, to report to the third party participants, whether it be on a Gross, Adjusted, Modified or Net Participation basis, in accordance with the contractual terms of the agreement. The contractual terms will be thoroughly analyzed to ensure all available costs, expenses & deductions are utilized to minimize the potential profit participant pay-out. Further, these statements will be audit proof, as all amounts reported will include the appropriate detail and footnotes to seamlessly explain the activity being reported, thus reducing time necessary to deal with a potential participant audit.
MANAGEMENT AND COMPLIANCE
A tracking database can be customized to fit your particular needs, which will serve as a master list where you can assess all agreements that bear third party reporting obligations, including a concise summary of all contractual terms and reporting due dates. This will keep you organized & on top of your third party obligations.
Cash flow & status reports, as explained in detail per item B. 3. of the residuals section, will provide management with the third party obligation information they need to effectively manage the company’s cash flow, while ensuring compliance is maintained.