You’ve identified a few warning signs that your business might need assistance. Intrigued by all the benefits of outsourced accounting you’ve been hearing about, you’re almost ready to take the next step and find the right outsourcing provider.
But there are still a few lingering doubts running through your head. We hear these doubts all the time, with clients asking questions such as, “Will I still be able to run my business the way I want to?” or, “Do I really need to outsource everything? We don’t have the budget for that.”
Well, we’re here to break the good news. We will always put the ball in your court, and the amount you wish to outsource is always your decision. While we’re more than happy to provide the full scope of our oil and gas accounting services if they are requested, here are a couple of common reasons why some business owners may choose to partially outsource.
The first reason businesses may choose to partially outsource is— as you may have already guessed— budgeting constraints. Though outsourcing is a great way to save capital on your accounting long-term, it can be a large pill to swallow for small businesses to pay for these services in the short-term. Thus, a lot of these businesses choose to only outsource specific functions that they need the most assistance with, or they hope will have the greatest ROI, to help reduce that financial burden. And remember, you can always choose to outsource additional processes as your business grows.
Small to mid-size businesses often turn to outsourced accounting because of substantial company growth. Eventually, they may reach a point where their in-house team may not be able to keep up with growing pains. But no one has to lose their job when these companies choose to outsource. We can seamlessly work with your in-house accountants, especially if you only outsource part of your accounting functions. Your team can continue doing what they do best, and we’ll help them keep up with the increasing demand.
Any specific process(es) your business is struggling with should be the first thing you outsource. For example, if your company is struggling trying to manage a long backlog of revenue data entry, our team can focus on helping you recover from that backlog and ensure that your business stays on top of data entry in the future.
The Oil & Gas industry is complicated. Regulations are often changing— not to mention that regulations differ in every state— and maintaining regulatory compliance can be tricky. There are also Oil & Gas accounting functions that businesses must be able to handle in addition to general accounting practices, and some of these functions require extensive knowledge about the industry to truly understand. These processes, such as joint interest billing and division orders, are best left in the hands of specialists who have years of experience managing Oil & Gas Accounting for different clients.
If you’re concerned about ensuring your payments are on-time and avoiding backlog, outsourcing repetitive tasks such as Accounts Payable (AP), Accounts Receivable (AR), payroll, and financial reporting may be right for you, especially if you are manually handling these items every month. Our bookkeepers can help you convert to a modern cloud-based ERP that can automate these tasks.
If you’re relying on paper trails, manual processes, or legacy software, you’ll need to be prepared to select a cloud-based ERP software that both your accountants and your outsourcing provider will use going forward. It can be tough to choose the software that’s just right for your business, especially when there are so many choices on the market. That’s why, during our scoping process, we’ll get to know you and your specific software needs so we can recommend the best option for you.
During that scoping process, we’ll also have a two-way discussion about the work we think you’ll need for your books. We’ll give you a second opinion on which transactional services would be best for your business to outsource. Once you make a decision, our Client Success Team will begin your data conversion, and the ball starts rolling.
Lauren, one of our youngest team members, comes to PetroLedger shortly after obtaining her Digital Media Innovation degree from Texas State University. Armed with knowledge of digital and social media trends, Lauren brings a fresh perspective to PetroLedger’s online identity and ensures that our company reaches new clients.
Despite how far the field has advanced into the digital sphere, the Oil and Gas industry is still overrun with legacy software notorious for a lack of transparency. In addition, many companies are still using manual processes such as physical spreadsheets to manage their assets alongside these legacy databases. This lends to control issues, data integrity concerns, and potential legal trouble. Transparency— or the lack thereof— impacts many facets of your business, including your year-end processing. Here are a few of the ways transparency shapes your company functions:
Whether you’re an E&P operator, part of a private equity firm, or a midstream company, you’re probably expected to be GAAP compliant. But fully understanding GAAP procedures can be a tall task— albeit an important one— especially if you don’t handle your own business’s accounting. Not complying with GAAP can lead to severe consequences for your business, so we’ve explained the 10 GAAP principles and what they mean, how these standards apply to your business, and what the requirements are to be GAAP-compliant.
Everyone is familiar with time and material billing. We do the work and whatever time it takes; we bill you at the end of the month. It may be fair, and it may be accurate, but it can give clients heartburn when they don’t have insight into their monthly expenses, especially in today’s environment. A new trend we’re seeing in outsourced service businesses, and one we’ve started offering, is flat-fee billing. Flat-fee billing is a set cost for services that does not change based on time spent). Let’s explore how this could benefit your organization.