In today's business environment, many oil and gas companies need help navigating the industry's complex financial landscape, which includes fluctuating markets and stringent regulatory requirements. Oil and gas accounting can be a labor-intensive process. While tracking your company's finances and maintaining basic bookkeeping is essential, it has limited use as a tool to give companies a competitive advantage. Instead, business leaders need data that can help support critical business decisions and fuel growth.
Outsourced accounting provides access to specialized expertise, ensuring accurate financial reporting, compliance with regulations and efficient management of production accounting. It also allows oil and gas companies to focus on their core operations while reducing costs associated with maintaining an in-house accounting team.
However, many people don’t know where to begin or if an outsourced accounting team is even necessary for their business. To help answer your questions we gathered the top questions we frequently encounter.
What are common trends or pain points in the industry that outsourced accounting helps address?
At the center of a complex and changing regulatory environment, the oil and gas industry faces challenges on a daily basis. Many oil and gas companies struggle with a backlog in non-operating joint interest billing and revenue data entry, leading to shortcuts, workarounds or delays in the monthly closing process. Outsourced accounting can create business process automation, resulting in oil and gas companies achieving significant savings and reduced cycle times.
Another common issue many oil and gas organizations face is the inability to produce meaningful and timely well profitability reports (WPR) or lease operating statements (LOS) that answer operational questions and add insight into managing the business. You need the capability to both summarize and dynamically drill into the details of WPR and LOS. These should be groupable and subtotaled by various attributes, such as location, field, tank battery, route, play or acquisition, allowing you to identify trends, issues and errors in real-time, rather than 30 to 60 days later. Outsourced accounting offers dependable, cost-effective solutions to reduce your overhead and the effort spent managing day-to-day accounting tasks.
