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Accountor CPA's Experts Offer Specialized Accounting for Oil and Gas Operations
Canada sits as the fourth largest producer of crude oil products worldwide. As a result, the oil and gas industry brings in over $170 billion annually. Knowing these profits, do you need help understanding the petroleum industry's financial duties? Accountor CPA offers a wide range of bookkeeping and financial services in your industry. Our experts are available to answer any questions you have about petroleum financial reporting in Canada.
Don’t settle for cookie-cutter bookkeeping solutions from other oilfield services industry firms. Accountor CPA recognizes the need for specialized services that cater to your small business. Our bookkeeping methods help companies make better financial decisions for success.
Here are the two main ways Accountor CPA handles your bookkeeping in the fossil fuel industry.
- Full-cost (FC)
- Successful efforts (SE)
Full-Cost (FC) Accounting for Oil and Gas
Full-cost bookkeeping has benefits and drawbacks, making it ideal for specific industry situations.
Benefits of Full-Cost Record-Keeping for Oilfield Companies
This method can make financial reporting and profits appear higher because it defers costs to a later date. A company may seem more profitable and attract new investors due to an elevated net income reported.
Drawbacks of Full-Cost Financial Reporting in the Oilfield Services Industry
Full-cost bookkeeping methods can put a company at risk for larger non-cash charges. This situation happens when there’s a lack of revenue from unsuccessful exploration attempts. These expense charges can bring down stock and share values, weighing heavily on a company’s operations.
Successful Efforts (SE) for Oil and Gas Accounting
Many energy industry companies in Canada choose successful efforts (SE) bookkeeping methods for operations.
Benefits of Using Successful Efforts (SE) In the Petro-Chemical Industry
The successful efforts approach to accounting for the oil and gas industry can help a company allocate expenses. This way, costs are only included when an exploration venture is successful. If exploration is unsuccessful, it charges expenses back to revenue instead.
Drawbacks of Successful Efforts (SE) Methods for Fossil Energy Companies
Using successful efforts with petroleum industry bookkeeping can also bring some disadvantages. A company’s net income is impacted more when ventures are unsuccessful by following this method.
Expert Financial Analysis for Oil and Gas Operations From the Professionals You Can Trust at Accountor CPA
Accountor CPA understands the requirements of the oil and gas industry in Canada. Our professionals have been helping businesses since 2015 with their oil and gas joint venture accounting. We have the knowledge and expertise to handle all your financial needs with custom bookkeeping solutions.
Our trained specialists are the industry's top choice for oil and gas accounting outsourcing solutions. We recognize that each company has unique needs for their bookkeeping and accounting. No matter what stage your business operates in, we can help.
Accountancy in the petroleum industry encompasses three main stages. These include:
- Upstream
- Midstream
- Downstream
Upstream Oil and Gas Accounting
Upstream accounting for oil and gas companies refers to all bookkeeping tasks during the beginning phase of production. This stage is associated with the exploration of new oil and gas sources and their initial production. Not all companies will have successful explorations. When this happens, they will have to choose full-cost or successful effort bookkeeping methods during this phase.
Midstream Accounting Methods for Energy Businesses
Midstream financial reporting in the black gold industry is recognizable as operation costs. This phase begins after the upstream method successfully finds oil and gas for production. Many Canadian companies can combine their midstream and downstream bookkeeping activities because of their access to local refineries.
Downstream Finance Methods for Gas Companies
The downstream phase involves all costs of refining collected oil and gas into usable products. Companies that use downstream activities benefit from professional bookkeeping methods that track expenses and revenue.
Professional Accounting for Oil and Gas Companies Is Simple and Affordable When You Choose Accountor CPA
Oil and gas operations exist in 12 of 13 Canadian provinces. Accountor CPA understands the need for a professional firm that can handle accounting tasks regardless of location. We operate as a 100% virtual accounting firm and provide simple and affordable solutions for small and medium businesses.
Oil and gas accounting processes require expert management. Accountor CPA has a team of specialists that offer professional accounting in the oil and gas industry. This way, you don’t worry about managing your books or filing tax reports. We provide customized solutions to meet all your business needs. You will never pay for a service you don’t need when you use Accountor CPA as your professional oil and gas accounting firm.
This chart details some of our popular bookkeeping and accounting services available for the gas industry.
| Service | Best for |
| Tax preparation and filing | Avoiding late filing penalties or fines for inaccurate reports |
| Payroll processing | Timely and accurate payments to employees |
| Expense tracking | Managing associated operational expenses |
| Invoice management | Tracking paid and unpaid invoices quickly |
| Advisory services | Making better business decisions |
FAQ:
Yes, we do! Our team specializes in oil and gas accounting, including tax preparation and reporting. You can count on us for accurate and timely tax accounting all across Canada. We ensure that CRA has everything it needs to process your business’ tax filings. This way, you avoid fees for inaccuracies or late filing penalties. Talk to our helpful support team today for a free quote on your oil and gas tax accounting needs.
Receive Professional Accounting for Oil and Gas Operations When You Choose Accountor CPA
You can trust Accountor CPA’s professionals for all your virtual accounting for oil and gas operations in Canada. Our experts offer comprehensive financial reporting solutions, from daily bookkeeping to annual tax reporting.
Contact us today to book your free, no-obligation discovery call. We are happy to provide an all-inclusive accountancy solution that suits your business needs.
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