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How to account for royalty payments
Negotiate contracts so that royalties are payable at regular intervals.
If possible, negotiate royalties so that they can be paid monthly, quarterly or semi-annually. In any case, be sure that you and your licensor are on the same page on the contract and payments terms.
Make sure the artist or contract holder is fully aware of when they will receive their payments. Collect tax information on each person who will be paid royalties.