Royalty Accounting is the process of tracking and managing payments made to creators or owners of intellectual property, such as music, books, or patents. These payments, known as royalties, are typically calculated based on sales, usage, or licensing agreements. Accurate accounting ensures that creators receive fair compensation for their work. In Royalty Accounting, companies must maintain detailed records of revenue generated from the use of intellectual property. This includes calculating the correct royalty rates, preparing financial statements, and ensuring compliance with legal agreements. Proper management helps prevent disputes and fosters trust between creators and businesses.