Oil & Gas Accounting Services
Oil & Gas Accounting Services
We provide you with dependable, cost-effective solutions to reduce your overhead and effort spent managing day-to-day accounting tasks. Bringing decades of oil and gas industry experience to the table, we work with you to build a fully customized plan to meet your business needs and maximize profits.
Baker Tilly can help you navigate outsourced accounting
Are you an independent operator? Oil and gas investor? Royalty trust or mineral interest owner? No matter what part of the oil and gas industry you play in, you face complex regulatory challenges on a daily basis. Baker Tilly’s oil and gas outsourced accounting specialists can build a tailored solution to meet your goals today and scale with you as you grow, whether you are looking to outsource your entire accounting function or seeking assistance to manage overflow work.
Interested in getting started with us? Contact our back-office specialists.
At a glance
As an independent operator, investor with a portfolio of non-operated working or royalty interests or a broker of oil and gas investments, Baker Tilly’s online systems and services can streamline your back office operations. This efficiency frees you and your team to focus on your core business, not on processing and managing your payables, joint interest billing (JIB) statements or revenue distribution checks. Our staff at Baker Tilly will handle portions or even all of your daily bookkeeping needs and will be in constant contact with questions or concerns as they arise, so you can refocus your time and effort.
Our custom service makes a difference, so you receive the following benefits:
- Staffing flexibility and reduced costs
- Quick start up and the ability to get the project done
- Anytime, anywhere access
- Library of best practices, process flows and controls
Our extensive oil and gas services
Baker Tilly offers accounts payable and joint interest billing; financial, operational and production reporting; revenue entry and distribution; and hosting and software services specific to our oil and gas clients. Expand the sections below to read more about these services.
- Accounts payable
We tailor our solutions, so you can stay on top of payables and get your partners their joint interest billing (JIB) statements on the same day each month in a user friendly format. Our accounts payable process includes receiving, entering, scanning and routing vendor invoices. This invoice work flow includes coding and approval as well as electronic paperless options. Our oil and gas accounts payable services also include a variety of allocation options (i.e., straight percentage volume or sales based), baseline chart of accounts and system configurations, options for vendor check runs and 1099 processing and IRS filing. - Authorizations for expenditures
In addition, we create and maintain authorizations for expenditures (AFEs) and track actuals to estimates each month. Our team has the ability to maintain and report pre-payments per AFE for each owner alongside their existing JIB accounts receivable balance, the ability to apply specific charges to an AFE for a well but not all charges and the ability to support multiple AFEs and phases for a given well, including creating AFE templates. - Joint interest billing and accounts receivable
Our team maintains an up-to-date balance of what your working interest partners owe you by well and AFE with a variety of options for accounts receivable (AR) aging and statements reporting. We also maintain a ledger of owners share of billable expenses for one or many owners and a ledger at summary or detail level, all while maintaining the well 88’s expenses in detail. We provide multiple netting and reporting options and will run a simulation JIB before finalizing to see your results and reconcile issues.
We are proficient at configuring and customizing the system to best fulfill your needs, and we can create custom business intelligence solutions. These solutions range from spreadsheet extracts, dashboard or other third party interfaces, to custom database reporting solutions. With our online delivery, you can access and track your land management records remotely.
- Financial reporting
We offer custom trial balance, income statements and balance sheet reports, all of which can be created as drill down reports that run at a detailed or summary level. We have the ability to trend financials over time (annual, quarterly and monthly), provide all reports in Excel and consolidate many companies into a single reporting entity. - Operational reporting
We can create multiple traditional lease/well operating statements (LOS or LOR), custom groupings of wells by unlimited groups (field, geography, play, pad, etc.) and reports for LOE, D&C, G&A. And, we can drill down reports online to the original invoice. - Production reporting
Our team helps clients collect oil and gas data from the field. We perform state reporting for Texas, Oklahoma, Kansas and other states and subcontract complex state reporting needs, as required. We file electronically, ensure all filing and payments are made on time, ensure severance and production taxes correlate to production reporting and revenue distribution.
Our accounting software and back-office services are completely internet-enabled so that you select the right level of involvement and control to customize a partnership with our professional team.
- Revenue (check stub) data entry
– Ability to perform high volume of manual entry and electronic processing
– Support multiple electronic sources (Oildex, PDS , direct from the purchaser, other)
– Standard set of quality assurance processes to ensure accuracy and validity of all check stub detail
– SAS70 certified processes for revenue recognition services
– Maintain interest paid, well detail, purchaser well numbers and owners numbers
– Record deposits and reconcile/balance revenue received, taxes and other paid versus distribution
– Custom processes to delineate taxes, state withholding and other charges and deductions that have key tax implications for your properties - Revenue distribution and reporting
– Volume printing, stuffing and mailing with automated clearing house (ACH) and Positive Pay capabilities
– Variety of owner/partner relations web sites available
– Lock box and deposit support with all distributions balanced to deposits
– Reporting by well and owner by product and interest type: gross, volumes, net, tax, deductions
– Generate and distribute annual 1099's and/or K1's for tax reporting
– Custom reporting options supporting a full general ledger, variety of well operating statements and customized Excel extracts for owners share and well totals - Revenue owner, well, DOI, suspense maintenance
– Perform owner and DOI maintenance per agreed upon change request process
– Perform suspense maintenance, re-distribution and check void/re-issues as warranted
– Perform annual 'flush' of suspense for minimum payments and escheating reporting/payments
– Ability to perform owner relations services with dedicated web site and 800 phone service
Our approach is simple, we make sure your business gets the job done. Software alone does not make your back-office efficient, you need people who know how to make the software work properly. We deploy the people, process, and technology to provide you timely, accurate results. And, we combine leading software with knowledgeable, trained staff to get your work done accurately.
We use several oil and gas applications as the platform for delivering results, including:
- WolfePak
- OGsys
- Quickbooks
- Land Administration software (various)
- Mineral interest and royalty management
- Field data gathering and morning report
- Document management software
Virtual IT department
- Our clients receive unmatched application and back-office services and access to a virtual IT department. Clients do not need to worry about back-ups, network security, systems administrators or other IT demands. The end result is that our clients receive hassle-free results.
– End-user training online sessions and real time support
– IT support by remote connection and on-site support where required
– Data extraction and conversion
– Custom development and reporting
Security
- Application hosting is secure and redundant as it is built upon Microsoft Azure cloud services and data centers.
Why outsource?
Do what you know best and outsource the rest to our qualified specialists. We have helped our clients through the booms and the busts.
- Cost savings: Reduce cost by employing partial employees versus full time hires. Reduce overhead such as office space, paid leave or benefits.
- Labor flexibility and focus on core activity: Increase or decrease personnel depending on your needs. It is our responsibility to hire, train and manage to free you up to focus on your core business.
- Best practices: We have processes in place that are proven and tested. We will work with you to review and customize implementation details to best suit your needs.
- Tighter controls: Internal departments and personnel evolve over time and can frequently grow out of control. We have checks and balances for processes such as check writing, division of interest (DOI) maintenance and general ledger (GL) maintenance.
- Quick start up: You can access your oil and gas accounting software the day you sign. We will cut checks and run joint interest billings (JIBs) within days of start up.
In the current climate, controlling cost and delivering actionable data for both managing production and assessing partnership or transaction options is critical to managing your upstream business. Our oil and gas outsourcing solutions can reduce G&A expenses from 20-50% by leveraging partial FTE experienced resources, systems and automation, combined with less costly but highly trained offshore data entry personnel.Tom Black, Principal