Financial Management

Abstract

With the goal of helping orchestra managers become conversant in financial management concepts, this chapter begins by outlining basic financial terminology, a discussion of capital structure, and various types of statements and reports that are useful in managing an orchestra’s finances. The orchestra budgeting process is also highlighted, as is the typical orchestra cash flow cycle. Typically the major expense item for any orchestra, the various methods of paying the musicians will be a focus, including fixed versus variable costs, service utilization, and the impact of finances on artistic planning.