As an independent operator, you can’t afford to make an accounting error. By the same token, it can be extremely expensive to maintain a staff of specialized bookkeepers. That’s where outsourcing comes in. The benefits of outsourcing are many, and today’s blog will explore the top five reasons why you should farm out your oil and gas bookkeeping.
1. Save Money
Anyone who’s been around oil and gas in the past few years knows how quickly unnecessary expenses can become a major liability. And one of the biggest expenses? Personnel. Let’s add it up: In addition to salary and insurance, you’ve got retirement and training costs. And let’s not forget, every additional employee creates an additional cost in human resources management. Add to this the fact that many small operators are paying 40 hours for a job that could be done in 20 hours. Working with an outsourced team can help you understand and address your bookkeeping needs at a significant cost savings over internal staffing.
2. Save Time
In a market that can change by the day, time becomes the most precious resource. For every hour you spend managing your back office, you lose an hour that could have been spent exploring new projects or checking up on your in-field operations. While most E&P firms view accounting as a necessary evil, the time required to oversee it can have a real impact on your bottom line. Outsourcing removes this management burden, and gives you the freedom to focus on production—not paperwork.
3. Increase Your Peace of Mind
Anyone who’s ever looked at a division order knows that E&P operations involve a great many stakeholders, and in general, these stakeholders will not tolerate an accounting blunder. In an industry that demands accuracy to the one hundred millionth of a percent, there simply is no acceptable “margin of error.” Outsourced oil and gas bookkeepers understand this reality—and as subcontractors, they live and die by their accuracy. So if you find an outsourcer that’s been around a while, it’s a pretty safe bet that they know what they’re doing.
4. Enjoy Greater Scalability
A far cry from the doldrums of 2014-2016, today’s E&P operators are keeping the pedal down—and there are few signs of a retreat in the near future. For the independent producer, it’s an encouraging time to be back out in the field, but the potential for rapid growth comes with it another set of challenges. Today you manage 25 wells. One good deal could double or triple that number over night. Are you equipped to address the burden that rapid expansion will have on your back office? Do you have the agility to seize new opportunities as they pop? Outsourced bookkeeping can scale with you—instantly and without the growing pains that come with hiring new staff.
5. Stay Ahead of the Curve
Today’s tax code looks vastly different than it did even 10 years ago, and with each change comes a back office learning curve. Outsourced bookkeepers are experts at adapting to the latest regulatory changes, and they have a strong incentive to seek out new efficiencies. After all, the more accounts they can service, the more money they’ll make. What does that mean for you? It means that outsourcers are more likely to take advantage of advancements in technology, processing, and reporting.
There are many reasons to outsource your oil and gas accounting, but when you’re ready to make the switch, there’s only one name you need to know: Eddye Dreyer Financial Services. For more than 25 years, Eddye Dreyer’s specialized bookkeepers have helped independent E&P firms get back to the business of pumping oil. This experience has given us a keen understanding of the unique considerations facing independent operators. How could it not? Eddye Dreyer produces nearly 2,000 joint interest billing statements every month. We have unrivaled experience in WolfePak, and we have been trusted by firms all across the country. So if you’re ready to streamline your operations and plan out your next play, you can rest easy in knowing that Eddye Dreyer’s got your back.
Interested in learning more about outsourced back office? Call us today at (210) 340-5900, or click here to contact us by email.