So, you’re interested in outsourcing your oil & gas accounting.
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.
Full-scale outsourcing can be expensive short-term
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.
They already have in-house accountants
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.
So which parts of my accounting functions should I outsource?
Focus on the Problem Areas First
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.
Industry Accounting Functions
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.
I’m ready to start outsourcing, so what next?
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.