Why purchase royalty software? The top reasons that publishers give for purchasing royalty software are;

1. Royalty Software Saves Time

What is the most productive use of your staff’s time? Is it spending a week or two or three preparing and reviewing royalty statements? Or could they be doing something that is more productive? The more time that your staff spends preparing royalty statements the stronger the case for upgrading your royalty software.

2. Royalty Software Prevents Over-payments

Some publishers overpay royalties. They may miscalculate the royalty escalator, forget to deduct a royalty advance, don’t carry forward the right balance and forget that no-royalties are due on below cost sales. Royalty software  that helps you avoid these errors will save you money. On average, a publisher with complex royalty contracts will find that royalty software will reduce their royalty expense by 0.5% to 2%. If you are paying $300,000 in royalties (about average for a $3 million dollar publisher) you will save about about $1,500 to $6,000 a year. A $30M publisher will save about $15,000 to $60,000 a year. A $300K publisher will save about $150 to $600 a year.

3. Accurate Royalty Software Prevents Underpayments

Some authors are afraid that they are not being paid all of the royalties due to them. Royalty software helps to ensure that authors are paid what they are contractually entitled to. It helps the publisher avoid the embarrassment and expense associated with an author’s royalty audit that uncovers a history of underpayments.

4. Royalty Software Inspires Author Satisfaction

Late royalty statements, riddled with errors, provided in an excel spreadsheet or a word document and delayed answers to royalty questions may cause an author to take his next book elsewhere. This is especially true if you are dealing with a literary agent.

Professional, timely and accurate royalty statements, rapid access to audit reports and quick answers to royalty related questions inspires an author’s confidence in your publishing company.

5. No Year End Royalty Expense Surprise

With royalty software you know exactly what your royalty expense is from month to month and what you owe authors. No estimates.  No surprises at year end for bankers,  investors or management.

6. Auditor’s Recommendation

If your auditor is spending an in-ordinate amount of time auditing your royalty accounts (royalty advances, royalties payable and royalty expense) they may suggest that you purchase or upgrade your current royalty software. The more confidence that the auditor has in your royalty systems the less time they will budget to audit this aspect of your business. This means that your audit bill could actually decline.

7. No Technical Support

A publisher may be using an old application – such as Filemaker 3 or an old version of Microsoft Access – to calculate their royalties. The person who wrote the software is no longer available to support it and it will not work on your new personal computers.

8. Royalty Software Saves Money!

Sometimes a publisher hires temps to help their staff prepare royalty statements. This often occurs when you have lots of royalty statements to prepare, the royalty rules are complex and your controller is relying on Excel spreadsheets to calculate royalties. Implementing a new software solution will eliminate or dramatically reduce this expense.