Accounting and audit clause
This clause explains how and when you will receive royalty payments and statements from the publisher. It also outlines your right to have an independent a
In plain English
This clause explains how and when you will receive royalty payments and statements from the publisher. It also outlines your right to have an independent accountant review the publisher's financial records related to your book to ensure accuracy.
What it means in practice
In practice, this means you will get royalty statements twice a year, typically detailing sales and earnings for your book. If you suspect discrepancies in your payments, you can hire an accountant to examine the publisher's records. If the audit finds significant underpayment (over 5%), the publisher covers the audit costs.
What's standard
It is standard for royalty statements to be provided semi-annually and for authors to have the right to audit the publisher's records, with the stipulation that audits are not excessively frequent.
Red flags
A clause that limits the audit to only once every two years instead of once a year.
Language that requires you to pay for the audit regardless of the outcome.
A provision that allows the publisher to delay providing statements beyond 90 days.
What to ask for instead
Ask for language that ensures you receive royalty statements within 60 days of the end of each royalty period, and that the audit can be conducted if discrepancies are suspected, not just based on a specific timeframe.
This is information, not legal advice. Contracts turn on their exact wording and your circumstances — before you sign, have a publishing lawyer or a body like the Society of Authors or the Authors Guild review the actual document.