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How To Pay Musicians After A Gig (Auto-Pay)

Have you ever had a musician who keeps forgetting to invoice you at the end of the gig? That can really mess up your accounting and payment schedules. The fact is, keeping track of who you have paid and how much you need to pay them for each gig can take up a lot of admin hours. 

USING AUTO-PAY TO PAY MUSICIANS AUTOMATICALLY

The Back On Stage software was designed to make payouts quick and easy. With the Auto-Pay function, you can set and forget! BOS will automatically send payouts at a time you specify and generate invoices for each of your musicians. 

As soon as payments are sent, admins and musicians both receive email confirmation of the payout made, along with an attached PDF invoice marked as “Paid”. 

There are a few necessary requirements for Auto-Pay to function:

  1. Your company must have a PayPal business account and you need to have it integrated with your Back On Stage company you wish to Auto-Pay from. Learn more about PayPal configurations in our tutorial on How To Set Up BOS For Your Company 
  2. Each or your musicians must have added their PayPal email address inside their personal profile in Back On Stage.
  3. You must “Enable” Auto-Pay inside Company Settings >> Details >> Auto-Pay & Payout Settings
  4. Configure your preferred Auto-Pay settings inside Company Settings >> Details >> Auto-Pay & Payout Settings

If these conditions are met, inside each Individual Booking View page, under the Finances tab, you will see a column called “Auto-Pay”. The checkboxes in this column indicate whether or not that particular member will be Auto-Paid or not.



Remember, PayPal and BOS Musician accounts are completely FREE. However, sending PayPal payouts and receiving PayPal or credit card payments from clients come with small PayPal fees. Learn more about PayPal fees here.

Enabling Auto-Pay (step 3 above) will also ‘check’ all those boxes for all your future bookings. However, you can still visit individual bookings and manually cancel the Auto-Pay payout for any musician by simply clicking on their respective checkbox to ‘uncheck’ it.

You may disable Auto-Pay anytime by selecting “Disabled” in Company Settings. This action will remove the auto-pay checkboxes mentioned above and will cancel all future auto-pay payouts, in which case you can simply press the “Pay” button in the Finances Tab on any Individual Booking View to pay your musicians manually.

PAYING MUSICIANS MANUALLY

It’s still a breeze to pay musicians or record payouts to musicians manually inside Back On Stage.

On any Individual Booking View page, under the Finances Tab, you’ll see a “Pay” button. Click that and fill in the details to record any payments you make to your musicians. If you have configured the PayPal settings for your company and the musician you wish to pay has also added their PayPal email address to their personal profile, you will have the option to pay them with PayPal from here also.

NOTE: If you choose "PayPal" from the payment method dropdown in the "Send or Record Payments" windown, BOS will send your PayPal payments immeditely on Save.


record payments


TRACKING PAYOUTS AND PROFITABILITY IN THE FINANCES TAB

With the nature of our industry, every bandleader or band manager needs to keep track of whether or not each gig (as opposed to each product) is actually profitable. If there’s no profit left on the table, you won’t be in business long!

But fancy accounting software like Quickbooks and Xero make it really hard to track income and expenses on a per-gig basis without tons of manual data entry. That’s a drag!

Fortunately with the Back On Stage app, all your company’s financial records for each gig are stored in… guess what? The Finances Tab of each Individual Booking View.

The Finances Tab is divided into “Payables” and “Income/Expenses”.  Payables are all the musicians you are hiring and the amounts you owe each. Income/Expenses is a report that shows you all the transactions for that particular booking.

Never has it been this easy for you to track your gig profitability!


BOS finance page


Not everybody is good at accounting, so here are a few simple accounting terms you need to get familiar with:

  1. Invoice Total - The total amount your client owes you. This is how much you are charging your client.
  2. Balance Owing - The amount your client owes you after they make a deposit or any other payments.
  3. Total Payables - This is the amount that you owe your musicians. Remember? We set this amount when we selected the Roles and booked the musicians in the Booking Creator.
  4. Income - The total amount your client has paid so far, including the deposit or any other payments.
  5. Expenses - The total amount you have paid so far. This includes your musicians fees as well as any other related expenses (e.g. vehicle rental, supplies… etc)
  6. Loss - This is the NET LOSS. After all your payouts, if you’ve paid more than your Total Income, then  BOS will display a LOSS in red. You don’t want this to happen. Make sure you at least “Zero” your books.
  7. Profit - After all your payouts, if you have any leftover amounts after payouts then BOS will display a PROFIT in green. Yay, you’ve made money!

RECEIVING CLIENT PAYMENTS WITH BOS

WHEN COMPANIES RECEIVE CLIENT PAYMENTS VIA PAYPAL 

When a client pays for their invoice using credit card/PayPal, BOS will record the transaction automatically. Because the money immediately moves to your PayPal account, the transaction is completed and will display on your financial reports inside Back On Stage.

ACTION REQUIRED:  No further action is required. 

WHEN COMPANIES RECEIVE CLIENT PAYMENTS VIA E-TRANSFER, CHEQUE OR CASH 

There are two possible ways to record a client payment via e-transfer, cheque or cash inside Back On Stage:

  1. From inside the client portal, a client can choose one of these options from the payment method selector and proceed with payment. In that case, the payment details will be recorded as the client entered them.
  2. You selected the “Apply Payment” button on the Individual Booking View page and applied a payment to the client invoice yourself.

In both of these cases you will see the transaction recorded inside the Income/Expenses section of the Finances Tab, but there’s one notable difference from the previously discussed PayPal transaction: the “Confirm Receipt” button.


finance confirm receipt button


This button won’t be familiar to most because it is unique to the Back On Stage app (ie. It is not part of typical bookkeeping software). The reason this button exists is because in the first case above, your clients are essentially writing their financial transactions for you, inside your financial records. 

Since them just “saying” they sent you a payment, and you actually “receiving” the payment are two very different things, Back On Stage does not consider this transaction confirmed until you click that big blue “Confirm Receipt” button, confirming that you did in fact receive the money.

Only after you click that “Confirm Receipt” button will the transaction be recorded on the books.

ACTION REQUIRED: Click the BIG BLUE BUTTON that says “Confirm Receipt

How Musicians Receive Payouts With BOS

WHEN MUSICIANS RECEIVE BANDLEADER PAYMENTS VIA PAYPAL 

When a bandleader pays for their musicians using PayPal (or Auto-Pay), BOS will record the transaction automatically. Because the money instantly moves from one PayPal account to the other, the transaction is completed and will display on your financial reports inside Back On Stage.

ACTION REQUIRED:  No further action is required. 

Furthermore, once the payment is complete, Back On Stage will automatically generate an invoice marked as “Paid” and send a copy to the musician and company admins via email. Both the musicians and admins can return to the Individual Booking View for that gig anytime to download more copies of that invoice if more are needed for any reason.

WHEN MUSICIANS RECEIVE BANDLEADER PAYMENTS VIA CASH, CHEQUE OR E-TRANSFER 

When a bandleader pays for their musicians using Cash, Cheque or E-Transfer, there are two important events occur:

  1. The musician and any admins will receive a payout confirmation email with a PDF copy of the “Payment Pending” invoice attached. 
  2. The transaction is noted in the Finances Tab on the Individual Booking View page for both the musician AND the admins, except that the musician will see a big blue “Confirm Receipt” button next to the transaction in their Finances Tab. 

In order for the payout transaction to be completed, the musician must click on the “Confirm Receipt” button. 

The reason this button exists is because a bandleader just “saying” they sent a payout, and the musician actually “receiving” the payout are two very different things. Back On Stage does not consider this transaction confirmed until the musician clicks that big blue “Confirm Receipt” button, confirming that they did in fact receive the money.

Only after you click that “Confirm Receipt” button will the transaction be recorded on everyone’s books and financial reports.

ACTION REQUIRED: Click the BIG BLUE BUTTON that says “Confirm Receipt

DON’T FORGET TO PAY YOURSELF 

Why do we play music? To make money, of course! (nudge nudge) Sometimes you, the bandleader, deserve a little somethin’ somethin’ for all the hard work you do! So how do we pay the band leader? Here are two ways you can pay yourself:

  1. The easiest way is just to leave the leftover income as Profit! After you’ve paid out all your musicians, you are left with an unclaimed amount in the income section. Simply leave it as is and BOS will mark that as company profit. Depending on how your company finances are set up in the real world (ie. whether your business is a sole proprietorship, corporation or other), this may be just fine. 
  2. If you would rather separate your own income from the company’s income and pay yourself as an “employee” of the company, there are a few more steps involved:
    1. STEP 1: Add yourself to your company as a “Member”. Click the “+” button and select “Member”, type your own name and email and then click “Invite
    2. STEP 2: Accept the member invitation. You will receive a notification inside Back On Stage and via email. Click the link and choose “Yes, I want to join” in order to become a Member of your own company.
    3. STEP 3: Assign yourself to a Role. You can create a new role and call it something like “Bandleader”, or choose an existing one.

Now that you are a Member of your own company and assigned to a Role, you can book yourself for various gigs and pay or Auto-Pay yourself accordingly.

In a hurry? Here's the short version.

  1. Connect to your PayPal Business Account
  2. Toggle Auto-Pay ON
  3. Tracking payouts and profitability in the Finances Tab

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