Like in any business, financial literacy is an integral part of the music business, and it’s one of the many important aspects of how Juan Cumbe helps artists as a strategic business advisor in the music industry.
Most days, he helps musicians familiarize themselves with the business side of the entertainment industry – managing cash flow and expenses – in a way that is relatable and understandable for his clients. Cumbe’s path is proof that your passions and career can sync up. Read on to discover Cumbe’s path to his calling.
Cumbe’s journey began simply enough. He went to school and got a B.A. in accounting. Upon graduation — while looking for different opportunities to utilize his education that also aligned with his interests — he accepted a paid internship at a modeling agency in 2011, which opened the door for him into entertainment accounting. He hasn’t looked back since!
Accounting is fundamental to business, and the entertainment industry is no exception. Accountants typically play key roles whenever musicians are about to drop a new song, album, or tour. The majority of artists are consumed with creating their art and not the numbers which create an opportunity for accountants to come in with strategy and financial resources. “When there’s a new project, I advise on keeping them on track and within budget to accomplish a profitable outcome,” says Cumbe.
Bringing the numbers to life may often be a challenge for artists. Cumbe connects with his clients through their shared passion for music, as well as reaffirming that in the end, the information he presents to the musician is something that can help them realize their own creative visions. He translates the numbers into a language they understand.
Cumbe tells us the advice he often gives to music artists is to protect their money and become financially literate. Financial literacy and the ability to manage and make informed decisions about personal finances are some of the first steps to leading a financially secure life. Often this includes educating artists on effective budgeting, saving, investing, spending, borrowing, and using credit wisely. Cumbe reminds artists that greater financial capability can go a long way.
According to Cumbe, accounting in the entertainment world entails leading clients to making investments in themselves, a key to ultimate success. “Invest in good publicity,” he says about this aspect of his job. “When you have that, it can make for a good return in the long run. Look for brands and sponsorships as well.” He also advises musicians on how to make their music and public personas grow for their target audience, including investing in strong producers and working in studios that align with their vision.
Cumbe recommends entertainment accounting to anyone with a strategic, critical thinking mind who wants to be in, or around, entertainment, but not as an artist or entertainer. “It can keep you in the inside circle,” he says. For him, some of the perks include getting to work with music and business executives, attending award shows like the Grammys and MTV Video Music Awards, private events, and festivals. Cumbe appreciates these rewarding experiences and opportunities to meet influential people.
Accountants are essential to the music business and finding the rhythm between the two brings rewarding challenges that keeps the tempo of this career upbeat.
