What is Oil and Gas Accounting Software
Oil and gas accounting software focuses on tracking energy projects and partnerships, including the acquisition and development of land leases for natural resources. The software can also track the status of leases and share it throughout a company while automatically posting land payments to the general ledger.
Companies can also monitor the financial positions of each general or limited partner. Larger-scale companies might require additional features, such as multiple currency options.
Oil- and Gas-Specific Functionality
Energy accounting software typically includes standard features, such as accounts receivable and accounts payable. In addition to these features, there are a number of industry-specific functions that software buyers should be aware of. Specific features of oil and gas accounting software include:
|Land Lease Tracking||Defines tracts of land nationwide and documents the ownership and lease terms from initial offer to signing. Manages lease obligations like rentals and renewals and provides automatic notifications for payments or lease expiration.|
|Documentation & Compliance||Helps manage lease documents and accounting receipts. Also keeps you updated on legal issues to support development and delivery of relevant, accurate compliance reports.|
|Dispatch Tracking||Provides schedule and dispatch maintenance/repair workers information needed to optimize their routes by skill/location to improve efficiency and quality of service. Also includes the ability to estimate job costs and manage service contracts, inventory, and purchasing through the dispatch management feature.|
|Energy Procurement Reporting||Streamlines energy procurement decisions using detailed data from loadshapes and special energy reports to create well payout profitability reports.|
|Rate/Tariff Analysis||Compares utility billed rates to alternative rate schedules, including those of competitors and other markets. May also include cost avoidance analysis to see potential solutions, as well as weather data to its impact on costs.|
Evaluating Oil and Gas Accounting Software
Energy software packages can generate state and federal reports required by auditing government agencies such as the Department of Energy, Environmental Protection Agency, or Department of Defense. Sorting profitability by site, activity, crew, geologist/engineer, and customer is also a helpful tool in energy accounting software. Software dispatch systems can help with scheduling and recording load pickups while providing information such as directions and gate combinations.
When evaluating oil and gas accounting software, buyers should consider the following:
- Will the software have a project-by-project sorting mechanism?
- Can the software analyze the financial status of the company’s partners?
- Can the software track lease status and integrate it with accounting?
- Do the features fit the size of the company, as in multiple currencies?
- Can the software generate the appropriate reporting documents for auditors?