Accounting for Oil and Gas Companies in UAE CDA Oil and Gas Accounting Services in Dubai

He graduated with Magna Cum Laude honors from Northeastern State University, earning a B.B.A. in Finance. Furthermore, he holds an MBA from Louisiana State University Shreveport and a master’s degree from Dallas Theological Seminary. There are thousands of products on the market that offer basic https://www.bookstime.com/ financial accounting, hundreds that can do cost accounting and less that are specifically geared toward mining and natural resources. Going with a general accounting solution may result in improper cost accounting which leads to improper profit reporting and incorrect reporting to investors.

Our back office accounting software solutions accelerate seamless collaboration between oilfield services suppliers and operators. Providing the petroleum industry’s largest network of upstream and midstream participants with leading-edge oil and gas accounting accounting solutions for oil & gas company automation. The effect of choosing one accounting method over another is readily apparent when comparing the financial results involving the income and cash flow statements.

Accounting software for oil and gas companies

We believe the oil and gas industry is at the beginning of the back-office technological revolution. Over the next decade, companies will see a fundamental transformation of how they can eliminate waste, streamline accounting, and automate daily tasks, as well as reduce overall G&A. The more you can think outside the box to challenge the status quo, the more efficiencies you’ll gain in the long term. Likewise, multinational companies will typically require access across multiple locations, meaning a third-party, cloud-based software solution will be necessary to provide wide-ranging accessibility. However, if team members are always on-site, you can probably get away with using an on-prem server without creating undue restrictions or limitations. Further, you want to be sure your platform of choice can easily accommodate the specific reporting functionality you’ll need – including real-time data, customizable reports, or even self-service dashboards.

• To get a real world example of this NAV model, click here to view a sample video on how to set up the revenue side in a NAV analysis for XTO Energy.
• Enertia appropriately splits the revenue functionality between the working interest partners in a well, pay royalty owners, & file regulatory reports.
• The production and sales quantities flow from PDMS into the Sales and Distribution Module of ERP.
• As soon as you hit save on the screens within SherWare, that transaction also posts to your QuickBooks account in your check register as a journal entry — or as a bill to be paid at any time.
• In other words, these two governing bodies have yet to find the ideological common ground needed to establish a single accounting approach.

Simply subtract the expenses from the revenue each year and then multiply by (1 – Tax Rate) to calculate the after-tax cash flows. When accounting software is “in the cloud,” it simply means that the application runs on a network of remote servers instead of at a company’s location. Embedded revenue management capabilities in accounting software automate the process of using analytics to maximize revenue and profitability.

How Everything Flows Together

As the costs of dry holes do not provide any future benefit, these costs are losses and should not be postponed (Baker, 1976). We provide expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. You will also need to take future integrations and growth into consideration when choosing new accounting software. Older platforms might not play nice with third-party modules that could prove to be beneficial to your team. Services are provided by the vendor, and service entries are passed by the functional groups. While the service entry is passed expenditure account is debited, and the liability account is credited.

Investing money in the right software now can save you thousands of dollars and keep your investors happy. There are many standalone software systems geared toward the oil and gas industries. These solutions help you control costs, promote efficiency, and run a profitable operation. All of these issues mean that oil and gas accountants have to deal with the full range of accounting issues, practically on a daily basis. In short, this is one of the more technically challenging accounting areas in the world. Another unique thing about oil and gas is the concept of DD&A – which stands for depreciation, depletion, and amortization.