Depending on the nature of your act, you may need to purchase certain supplies - or services - on a regular basis.
When you buy supplies on account instead of paying cash there and then, your suppliers are your creditors until you pay them. You may find that it is difficult to set up an account with suppliers as your purchases are likely to be relatively low in value and also fairly infrequent. However, if you are able to set up accounts, enter in your cash flow forecast the payments that you will make to your creditors (including VAT) in the months in which you will pay them. Your creditors may include:
- tutors and coaches
- specialists retailers for consumables like strings, sheet music, stage make-up and also for any maintenance and repair of instruments
- costume and prop makers, for your stage clothing and stage accessories if you're not going to make them yourself. You may also regularly use a clothing alterations and repairs service to change or fix elements of your costume
- photographers and printers who you use when putting together your promotional material
- a professional web developer to keep your website up to date
Using an agent
If you use an agent to get you bookings, you will have to pay them a percentage of your fee (usually between 10% and 15%). The payment agreement between you and your agent may be:
- the agent receives the whole booking fee, deducts his or her commission and then passes the balance to you
- you receive the whole booking fee and then settle up with the agent at the end of the month. If this is the arrangement then these payments should be treated as 'Payments to creditors'
Discounts from suppliers
You may be able to get small discounts from some of your suppliers, particularly if you develop a close relationship with them. However, as your purchases are likely to be fairly low in value, you are unlikely to be offered any significant discounts.