Picking oil & gas accounting software may be one of the most important decisions you make for your company. I mean, after all, how else do you make business decisions if you don’t know how much money is flowing in and out of your business each day? Here are 10 steps to helping you select the best oil & gas accounting software package for your company.
1. Make a list of your company’s needs. Talk to everyone who will be using the software to get their input. Discuss everything from your preferences and what all you need the software to do to what reports you need and end-of-year tasks.
2. Make a list of all the potential oil & gas accounting software packages.This isn’t a list of just the best oil and gas accounting packages out there; it’s more of a collection of everything you can find so you have something to work with when you begin to get picky. List every software package you are aware of, have read about, seen online, heard from others, etc.
3. Set a timeframe for when you’d like to make a decision and for when you’d like to begin implementing a new solution. Being able to define how fast you’ll need to move through these research steps will help you in the long run when talking with software representatives and deciding when the best time to implement you system will be, depending on downtime at your office, end of year times, etc.
4. Decide what your budget range is and how flexible or inflexible it is.It’s never a good idea to eliminate products simply because of price unless it’s REALLY out of your range, but having a ballpark figure will help you as you begin narrowing down the oil and gas accounting packages.
5. Eliminate all oil and gas software packages that aren’t a good fit.This isn’t the first time you’ll see this step in here because of how important it is to keep evaluating throughout the entire process. Many eliminations will come easy at this point.
6. Collect information on your top 4 to 5 choices (or less if you’ve narrowed it down that far). You can get a wealth of information from the Internet by collecting and reading everything off of the company’s website, other user’s reviews and anything else you can dig up. Call or email the company to get any literature maybe not available online or to get any information you couldn’t find online. Talk to peers in your area to see what they use for their oil and gas accounting software and why.
Find out the answers to these questions during your research: Is the software user-friendly? Can it grow as our business grows? What after sale service and support is available? Will the software let me handle distributions and joint-interest billing the way I want to? Will I like how the reports look and how much data can be reported on?
7. Evaluate your choices again and eliminate any that don’t seem to be the best fit.
8. Review the software either through an evaluation or trial version of the software, or by going through an online demo of the software with the company. Make sure you have a list of any questions you want answered by the software company and get to see every aspect of the software that you’ll need to use. Seeing how the software works firsthand will help you determine if it’s user-friendly enough for your company as well.
9. Evaluate your choices again. At this point, you should have a pretty good idea of which oil and gas accounting software packages will work best for you.
10. Contact references for the software. Talk to a few of the clients in your area, similar to your profile or who use the same product to get an idea of what life is really like with the software.
After this step, you should be ready to take that next step with whichever software provider you’ve decided on. You’ve down your homework and all your research – so making the final decision should come easy.
If you are an investor in oil and gas wells or a royalty owner that receives 8/8ths payments from operators – then you likely need a way to track all those investments and see how well your money is performing.
Throughout the rest of this month, I’ll be sharing a little bit more about how Well Profits works through a brief video demonstration, a podcast interview with the developer on how it was created and maybe even a little statistics from our investors.
First though – let’s see how simple we’ve made tracking your investments.
We’ve outlined it in three steps.
Step 1: Enter receipts
When you receive a check for production from an operator for the interests you have wells in, you’ll enter them into our software line by line, to give you the most detail to track and report on.
Step 2: Enter bills
When you receive an invoice for the expenses the wells you have an interest in have incurred, you’ll enter all the detail that you have on the invoice directly into the software.
Each line of expense will be entered individually, keeping a running total at the bottom of the screen until the entire bill has been added. Using expense codes and expense descriptions you’ll have already created when setting up the software, as well as vendor terms and due dates, entering your data just became a breeze.
Step 3: View Reports
Once all your data you’ve been sent for each well has been entered, you can create robust reports and graphs to see how well they’ve performed. With more than 20 pre-created reports already built into the system and the ability to design your own reports – the sky is the limit on what kind of reports you can run.
Visit our website at wellprofits.sherware.com to see more information on how the software works.
You can request a demo of the software, watch a brief introductory video or download an info packet.
Source: SherWare Blog
As a shout-out to all of our oil and gas friends and clients in Texas, I’m posting this public service announcement reminding everyone that new amendments to Statewide Rule 13 regarding well construction requirements are now in effect as of January 1.
The Texas Railroad Commission, who oversees the activities of the oil and gas industry, as well as other industries, passed the amendments last May in an effort to update and give clarity to operators regarding oil and gas well construction requirements related to casing, drilling, cementing, etc.
According to the Railroad Commission’s press release, “Texas is blessed with an abundance of natural resources, including several prolific shale plays that will continue to fuel an unprecedented growth of exploration and production. It is vital that as the state’s top energy regulator, we update and enhance our rules to continue our agency’s proud legacy of environmental protection and public safety,” said Commissioner David Porter.
A few of the amendments include:
– For wells undergoing hydraulic fracturing treatments, operators are required to pressure test well casings to the maximum pressure expected during the fracture treatment and notify the Commission of a failed test.
– Operators are required to isolate (place cement behind casing) across and above all formations that have a permit for an injection or disposal well within one-quarter mile of a proposed well.
– Operators are required to use air, fresh water or fresh water-based drilling mud until surface casing is set and cemented in a well to protect usable quality groundwater.
To read all of the amendments now in effect see the Texas Railroad Commission website.
For those whom these amendments will affect, what’s the impact? How much was changed and how it will affect your business for good or bad?
Source: SherWare Blog