Clarity
ROYALTIES MANAGEMENT
Royalty Reporting
Declaring royalties can be time consuming work, but if you get it wrong it can cost you dearly.
With Clarity ROYALTIES MANAGEMENT
managing your royalty reporting, you'll never have to worry about preparing and submitting your royalty declarations again.
They'll be accurate, delivered on time and audit compliant.
You'll save resource, minimise your costs and limit the financial risks of an audit.
Step by Step
It's your responsibility to ensure that you meet the the royalty obligations specified in your license agreement. Ambiguous clauses, the complexity of the royalty calculations, dependence on third-party information and the sheer volume of work required to produce information to a tight timescale can make compliance very difficult to achive.
Let Clarity ROYALTIES MANAGEMENT take the pressure off your business.
Firstly, I’ll work with you to find the best way to extract your sales reports from your ERP, accounting system, or spreadsheets, whatever you use. Licensees use a myriad of systems which generate different reports, so this is where we start.
Once we are comfortable that your sales reports match your General Ledger balances (so no sales are missed or over-reported), then I will create your license library.
Your License library is a digital record of all your licenses, detailing the relevant rates and restrictions for your licensed articles and properties. Licensing agreement are often complex which means that royalty terms can easily be mis-interpreted resulting in incorrect declarations. Viewing all this information in one place, and easily adding and amending details when you sign new agreements helps reduce the risk. Think of a well managed License library as the engine room of your royalty operation.
Once that’s done, it’s time to apply the terms held in your License library to your sales reports using the software calculation template. The systems I've established to calculate royalties will reflect all the rates, conditions, and restrictions you have agreed to and will highlight any non-compliance when it generates the data for your royalty declarations.
Finally the royalty calculation output is transferred to each royalty declaration template supplied by your Licensor.
All your declarations will be prepared correctly and filed in an audit-compliant format, so you won’t have sleepless nights worrying about a royalty audit when the time comes. And it will - that’s another guarantee I can give you.
But accurate, compliant royalty declarations prepared on time are not the only benefit you'll gain.
With every quarterly or monthly calculation, depending on how you want to run your business, comes some wonderfully rich management data. It’s generated as a bi-product of the royalty calculations and you can use it to great effect.
You can now see the recoupement for each license, the most profitable products (after royalty deductions of course), your top licenses, and your best performing properties. Whichever way you want to interrogate your license information, we can provide you with your own unique dashboard.
So how much will it cost?
The simple monthly fee depends on the number of licenses you have and the variable terms that apply to each.
We'll agree the periodic turnaround time and service level agreements that fit with your licensing obligations.
If your requirements change through an increase in the number of SKUs you are selling, an amendment to the contract terms, orthe acquisition of new licenses, we will update our service provision to meet you changing needs.
No matter how complex, the simple monthly fee will cost you less per year than the average auditor charges you when you fail an audit.
So, when you outsource your declarations to Clarity ROYALTIES MANAGEMENT and pass a royalty audit, you'll have saved money.
Plus you'll have all that beautiful license information on top to help guide your business decisions.
What’s more, you'll never have to use your valuable resource to prepare a royalty declaration again.
Sound good? Contact me to discuss how I can help your business thrive.
Have an upcoming audit?
Let me help you prepare with a Pre-Audit Check
or pro-actively manage the Audit process for you
Both options will give you peace of mind and can save you money.