Category Archives for Oil & Gas Accounting

#028: COPAS Economic Factors That Affect Everything You Calculate -Part 2 with Mike Cougevan

In part two of this episode of the podcast, Tom and Phil are back with Mike Cougevan, Vice President of Martindale Consultants. They’re talking about worker’s compensation rates, employees benefits, vehicle rates, and loading and unloading rates. They discuss the purpose of these remaining economic factors and the issues that using them can solve for operators in the industry.

Highlights:

1:28 Worker’s Compensation Rates

5:20 Employee Benefits

13:26 What can be charged for different types of employees

16:24 Vehicle rates

21:46 Loading and unloading rates

About Mike Cougevan :

Mike began his Martindale career in 1994 and is a Vice President of the firm. He provides senior leadership, expertly manages clients’ joint venture audit and other projects, and shares his extensive industry experience and knowledge to train Martindale employees. Mike also provides expert witness and litigation support and been accepted and designated as an expert in numerous State courts and in Federal court. Mike previously worked for Conoco (now ConocoPhillips) for 13 years in various positions, including financial analysis, joint interest accounting, internal reviews, managing non-operated properties, negotiation of agreements, and settlements of joint interest and revenue audits and disputes.

Connect with Mike:

Website | LinkedIn

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.

Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

www.copas.org

#013- The Must-Have Reference Items In Your Oil And Gas Accounting Library with Jim Allison and Robert Toudouze

In today’s episode, Tom and Phil are joined by Jim Allison, Vice President of Accounting Operations at Trinity Petroleum, and Robert Todouze,Revenue and Division Order Manager at Trinity Petroleum. They discuss the different materials that they refer to when they come across issues that they aren’t sure how to handle. They give different examples of how networking through COPAS and other relationships in the industry have helped them navigate unfamiliar situations that have arisen with things like JOAs and unbundling.

Highlights:

2:46 Reference materials that Jim and Robert keep in their library

6:46 The relationship between COPAS and ONRR

10:33 The best way to handle situations you aren’t sure how to manage

12:06 The challenge of interpreting existing regulations

13:44 Resources and references on operations

21:09 The importance of communication between departments in oil and gas

23:17 The value of a COPAS membership when searching for guidance on different questions and issues

31:18 How Jim and Robert facilitate continuous learning inside their company

34:54 Websites to use for reference

About Jim Allison:

Jim’s career in oil and gas started as a roustabout during summers in college. After graduation, Jim went to work for Eastern American Energy working in operations accounting.He was then transferred to the Denver headquarters from their eastern office after a few years. 30 years later, he is the VP of Accounting of Operations for Trinity Petroleum. Prior to that he was also with Oildex, Barrett Resources and Apache Corporation. He previously served as President and Board Member of COPAS Colorado.

Connect with Jim:

https://www.linkedin.com/in/jim-allison-a245649/

[email protected]

303.296.1908

About Robert Toudouze:

Robert graduated from Abilene Christian University in 2000 and spent three years in ministry in Aurora, Colorado, working with teens and preaching. He married Carrie in 2003, and started working in oil and gas at Forest Oil and Gas as a revenue analyst. After 10 years at Forest, Robert joined Trinity. He’s been there for eight years as a revenue accountant, revenue supervisor, and now, revenue and division order manager. Robert has been active in COPAS for most of his career, and he served as the revenue co-chair for COPAS in Colorado for three years.

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.
Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

www.copas.org

#011- How the Economy Currently Impacts Oil and Gas Accounting and Financial Reporting with Diane Kirk

In today’s episode, Tom and Phil are joined by Diane Kirk, Director and CPA at Plante Moran. They discuss how the current state of the economy has affected the oil and gas industry and some different scenarios that companies may face in the coming year. Some of the challenges they talk about include severance accounting due to layoffs, lease concessions, erosions of accounts receivable, the impact of the PPP loan on a company’s balance sheet, contract renegotiations, taxes and more.

Highlights:

3:08  Destination Imagination – What Diane does outside of accounting

4:45  How the current environment is challenging those in oil and gas accounting and reporting

14:28  Impact of PPP loans on a company’s balance sheet

15:32  Why the PPP loan wasn’t a huge help to the oil and gas industry as a whole

18:13 PPP Audits

20:54 The significant amount of bankruptcies in the industry this year

29:38 How reserves will be affected by current events

34:11 Asset impairments on financials in the upcoming year

38:32 Other challenges oil and companies are facing right now

About Diane Kirk:

Diane is the technical leader for the energy industry group at Plante Moran. She provides technical accounting and financial reporting expertise and support with an emphasis on complex debt and equity, derivatives, employee compensation, mergers and acquisitions, SEC regulatory compliance and reporting, and risk management. Diane is also actively involved in the training and development of the energy group team.

Diane has over 25 years of experience and focuses on distilling complex accounting topics and financial reporting into easy to understand language so that clients and team members can take appropriate actions. She has enjoyed helping to grow the oil and gas and energy practices while helping these clients address the challenges they face with running their business. 

Diane is a member of the AICPA, Colorado Society of CPAs, Colorado Oil and Gas Association, Western Energy Alliance, Women’s Energy Network, and the Council of Petroleum Accountants Societies (COPAS). She is also on the planning committee for the AICPA/PDI National Oil and Gas Conference and is a contributing editor to certain industry publications.

She was named a Top Women in Energy by the Denver Business Journal in 2018 and has spoken to client and industry groups and firm-sponsored educational events on such topics as accounting and reporting updates and industry hot topics.

Connect with Diane:

[email protected]

LinkedIn-Diane Kirk

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.
Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

#010-Creating Impact In The Industry As Part Of COPAS with Melissa Gruenewald

In today’s episode, Tom and Phil are joined by Melissa Gruenewald, founder and CEO of Green Forest Financial, PLLC, a CPA and advisory firm, and sitting vice president of Council of Petroleum Accountants Societies (COPAS). They discuss the many benefits of being an active member of COPAS, and how it has helped Melissa develop her career skills, relationships and leadership abilities. They also talk about things you can do to invest in yourself during the pandemic and making decisions moving forward.

Highlights:

2:41  Why Melissa decided to start her own firm in the middle of the Pandemic

4:20  How COPAS has benefited Melissa’s career in oil and gas

6:09  How COPAS helps in your day to day duties

9:03  Developing leadership skills

13:17 Why consensus is a big part of the process at COPAS

13:58 The true value of networking within an organization like COPAS

17:56 Ways that members can be involved in COPAS

20:53 Getting started in oil and gas even when you think you need more experience

23:03 The value of attending local and national COPAS meetings

29.55 The importance of patience in the current industry downturn

37:33 Decision making and planning for the future during the pandemic

41:07 Melissa’s vision for the coming year as president of COPAS

About Melissa Gruenewald:

Melissa Gruenewald is the founder and CEO of Green Forest Financial, PLLC, a CPA and advisory firm.  For 24 years, Melissa worked at large and small oil and gas companies with varying accounting responsibilities including joint interest, revenue, joint venture audit, gas balancing, payout, compliance, and financial reporting.  Melissa is currently on the Board of the Council of Petroleum Accountants Societies (COPAS) and serves as the Vice-President.  She also currently serves as the COPAS-OKC Audit Committee Co-Chair.  Melissa received a Bachelor’s in Accounting from Southern Nazarene University and a Master’s in Accounting from DeVry University.  She is a licensed Certified Public Accountant, Certified Management Accountant, and Accredited Petroleum Accountant.  

Connect with Melissa:

[email protected]

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.
Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

Quotes

Quite honestly, you can go and you can get a degree or you can read a book, but growing in your leadership really comes from doing it.-Melissa Gruenewald

COPAS is not just documents, it’s people. It’s a group of people, they create documents, they create kind of the framework around how oil and gas accounting is done.- Melissa Gruenewald

Being involved in the organization gives me access to the people who can help explain the why. And that makes me a better oil and gas accountant. – Melissa Gruenewald

You know, leadership is not about getting out there and telling people what to do, you’ve really got to listen and understand and serve other people.- Melissa Gruenewald

And I just think it’s important for our listeners to know, you know, you’ve got to just jump in somewhere, you can’t just sit there and go, well, when I get enough experience, I’ll be able to contribute.- Tom Wierman

#008:Understanding Oil and Gas Reserves with Deb Ryan

In today’s episode, Tom and Phil are joined by Deb Ryan, Senior Manager of Engineering at Sproule. Deb talks about how she is able to juggle all of her different roles, and gives valuable insight on how she helps companies calculate reserves. She discusses what companies can do before bringing in consultants to assist with reserve calculation, and how important it is to resist relying completely on automated systems for reserve calculation as they can leave quite a bit of room for error.

Highlights:

3:08 How Deb got started in oil and gas and eventually reserve analysis

5:40 Steps and factors in calculating reserves and why they are important

7:06 Determining which evaluation to use in different situations

11:47 The importance of reserves

15:25 What data are the reserves based on?

20:02  How production forecasts and decline curves are calculated

23:13 Why accounting automation can be a challenge when it comes to forecasting

24:19 How the current environment may impact year end reserves

32:38 Tips for companies that need help with reserve calculations

33:28 The importance of due diligence when it comes to calculating reserves

About Deb Ryan:

As Senior Manager, Engineering, Deb is responsible for managing Sproule’s Denver office and is part of the team that spearheads Sproule’s business development initiatives in the U.S. market. Deb’s 15-years of oil and gas industry experience includes reserve and contingent resource evaluations and audits, US and international fair market evaluations, and expert witness testimony. Deb has experience building dynamic simulation models and also provides instruction for various reservoir engineering classes for PetroSkills. Prior to joining Sproule, Deb held various positions with MHA Petroleum Consultants, Arrow Energy and Woodside Energy.

Deb was recently named as the North American Regional Director for Society of Petroleum Engineers (SPE) International Board of Directors. She is also on the SPE International Committee of Business Leadership and Management and was previously the Chair of the Denver Section. She currently serves as the Treasurer for the Women’s Energy Network (WEN) Foundation. Deb is also a member of the Society of Petroleum Evaluation Engineers (SPEE) and the Society of Women’s Engineers (SWE). In 2019 she was named by Denver Business Journal as one of the 40 Top Women in Energy and received the 2019 SPE Rocky Mountain Service Award. She is a registered Professional Engineer (PE) in Colorado.

Connect with Deb:

https://www.linkedin.com/in/deb-ryan-p-e-a838005/

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.
Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

#007: The Benefits of The Accredited Petroleum Accountant Certification with Lary Sides

In today’s episode, Tom and Phil are joined by Lary Sides, Senior Auditor with Chevron’s Audit Department, as they discuss how to stand out in the oil and gas industry with the Accredited Petroleum Accountant (APA) certification.  Lary details eligibility, preparation, the exam process, and retention of the certification, how to get started and how it’s helped him in his 39-year career. 

Highlights:

1:45 What is the Accredited Petroleum Accountant (APA) Program?

3:49 How the APA credential helped Lary stand out in the industry

6:03 Eligibility requirements for the APA credential

8:07 Preparing for the APA Exam

9:53 The process COPAS went through to create the APA Exam

13:28  Why specialists outside the industry were recruited to assist in the creation of the exam

14:08 How to take the exam

16:11 Keeping the APA credential once it’s obtained

16:48 Why you should get certified

About Lary Sides:

Lary Sides is a senior auditor for the Non-Operated Joint Venture Audit Center of Expertise team, within Chevron’s Corporate Audit Department.  He has 39 years of experience conducting joint venture audits and working with business units in joint venture accounting and audit issues for both US and international joint ventures.  

Lary is an Accredited Petroleum Accountant (APA®) and Certified Internal Auditor (CIA).  

Lary and Vicki Cromer chaired the COPAS Board of Examiners overseeing the APA® exam through its transition from an 8-part paper and computer-based exam to the current single exam format administered by Scantron.  Lary and Vicki were awarded the COPAS Eagle Award in 2017 for our efforts in developing and promoting the APA® credential.

Lary is a past president of the Petroleum Accountants Society of Houston, member of COPAS, IIA, and former member of the AIPN.  He has served on writing committees for the COPAS auditing guidelines and other committees for COPAS and AIPN.

Married with two adult kids and enjoys hiking, camping, fishing, and golf.

Connect with Lary:

https://www.linkedin.com/in/sidesl/

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.
Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

#006: Property Taxes in Oil and Gas with Drew Harold

In today’s episode, Drew Harold, director of state and local tax with Crest Tax Partners, talks about the importance of overcommunication within your team when it comes to property taxes in your organization. and how his experience in the field helped him gain a better perspective when it came to dealing with taxes.

Highlights:

1:53 How Drew got his start in oil and gas

4:18 Tips on internally managing communication about property tax

7:03 Most important aspects of effectively managing your company’s property taxes

11:14 Differences in the ways states arrive at a property’s market value

15:29 The importance of oil and gas companies being involved in governments

17:28  Opportunities for oil and gas companies to utilize various technologies related to their property tax

19:04 Reduced rates, incentives, exemptions, and tax liabilities for property taxes

22:11 Where to start when taking a closer look at your property taxes

About Drew Harold:

Drew is currently the Director of State and local tax with Crest Tax Partners. Prior to Crest, Drew spent 11 years with Chesapeake Energy in various state and local tax rolls including managing the property tax and sales and use tax groups. Prior to Chesapeake Drew was an industrial appraiser for Pritchard and Abbot in their Houston, TX office. With these various roles Drew is an energy industry professional with experience in property valuation, state and local tax planning, negotiating with state and local governments, providing legislative testimony related to state and local tax policy, and internal and external stakeholder communications.

Connect with Drew:

www.linkedin.com/in/drew-harrold

https://www.linkedin.com/company/crest-tax-partners

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.
Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

#005: The Steps You Need to Take To Reduce What You’re Paying in Severance Tax with Sarah Magruder

 

In today’s episode, Sarah Magruder, President of Safire Oil and Gas Consulting, breaks down some of the confusion and misconception surrounding severance tax. She talks about how important it is for all team members to have knowledge surrounding every aspect of the oil and gas process, and how that can help reduce overall severance tax payments.. 

Highlights:

2:57 What is severance tax?

5:30 Why some states have a lower severance tax

10:14 Two ways to reduce your severance tax

23:45 The importance of seeing the big picture in oil and gas

32:26 Understanding what you’re paying for

32:26 Knowledge is key when it comes to reducing overpayments

35:31 What to do in the case of an underpayment

38:19 Steps to take to reduce your severance tax

About Sarah Magruder:

Sarah Mcgruder is President of Safire Oil and Gas Consulting, a severance tax consulting group based out of Houston, Texas. Sarah holds a bachelor’s degree in finance from LSU and her MBA from the University of Houston. Sarah spent her almost 19-year career in severance tax, splitting her time between working directly in medium and large oil and gas companies. And as an outside consultant, is an active member of the Petroleum Accounting Society Houston, where she chairs the golf committee and is a presenter at the revenue committee, as well as an education day sponsor and presenter. Sarah has also been a speaker at numerous COPAS meetings from outside of the Houston area and presented multiple times at the API severance tax forum. She lives in Montgomery, Texas with her husband, four year old son, five horses, and two dogs.

Sarah can be contacted via email: [email protected].

Safire Oil & Gas Consulting’s website is www.safireogc.com.

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our podcast and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.

Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

I wanted to understand every single penny that I was paying to the state. Why am I paying this and is there a way I can reduce this?

If you don’t set up some checks and balances in place, you’re just going to keep doing the same thing over and over, you’re going to keep overpaying your tax, and then when you get a chance going back and getting a refund

#004: How to Save Big By Paying Attention to Sales and Use Taxes with Brent Watson

In today’s episode, Brent Watson, Principal at SALTA, PLLC, is here talking to us about the benefits and savings of being really attentive to sales and use taxes. Brent walks us through how operators can avoid overpaying on taxes, what to avoid and how one small operator saved over $275,000 by hiring a consulting firm to manage their taxes and review their purchases.

Highlights:

1:44 Why should oil and gas well operators care about sales and use tax?

6:13 Differences in tax situations by different states

8:58 Recouping Sales and Use Taxes

10:27 The greatest opportunities to save on sales and uses taxes

11:43 House Bill 430 in Ohio

15:08 Exemptions allowed in some states like Colorado, Kansas, Ohio, New York, Pennsylvania

17:27 A Limited exemption in Louisiana

18:50 Taxes on completion activities versus operational activities

22:47 What to look for when processing invoices

25:17 When you should bring in an outside consultant

About Brent Watson:

Brent is the Principal at SALTA, PLLC, which he founded in September, 2017 after leaving Grant Thornton LLP. Brent has 31 years of practice in sales tax, property tax, and tax incentive programs. Brent has specialized in working with clients to improve compliance through educating personnel and establishing or improving sales tax processes. Brent has established rapport with taxing authorities to effectively resolve tax issues on behalf of clients especially in Arkansas, Oklahoma, and Texas.

He launched the non-income tax group at Tyson Foods in 1990, then led that group for ten years. Brent has fourteen years of experience as a consultant and has extensive experience in the manufacturing, oil and gas, construction, and multi-state retailing industries. Brent has taught seminars for Lorman Education Services, is a frequent speaker for the Oklahoma Society of CPAs and COPAS; and has authored numerous articles in the OSCPA Focus magazine as well as the COPAS Accounts magazine. Brent is a certified Avalara implementation partner.

Brent is a member of the Institute for Professionals in Taxation, Oklahoma Society of Certified Public Accountants, and the Tulsa Chapter of the Oklahoma Society.

About SherWare, Inc.

If you’re enjoying this episode, please subscribe to our pdcasot and share with a friend! We also love ratings and reviews on Apple podcasts.

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.

Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

#001: Introducing the Oil & Gas Accounting Podcast

Phil Sherwood: Welcome to the initial episode of the Oil and Gas Accounting Podcast. I’m your host, Phil Sherwood, along with my co host, Tom Wierman. Hey Tom, how’s it going today?

Tom Wierman: Great, Phil, how are you? It’s good to hear from you.

Phil: It’s good to hear from you. It’s weird that we can’t get together these days. Everything seems to be virtual. But that works really good when you’re recording a podcast, right?

Tom: It does. It really does. You know, we have not really had this situation before. But I think we’re adapting pretty well. It’s been a few months now since we’ve had to go through this. And I think we’ve just like anything else, just make it work.

Phil: Yeah, I agree. So as we get started, one of the questions you may be asking is why a podcast on oil and gas accounting? Well, first and foremost, we want to bring valuable accounting information to the folks who deal with oil and gas accounting on a daily basis. 

If you’re a CPA, an accountant, bookkeeper, an office manager, or if you’re an oil and gas operator that’s doing the accounting yourself, you are who this podcast is for. There’s so much happening in the world today, especially in oil and gas, that affects the accounting function and we want to be a place that you can come to for relevant and timely information on the different accounting issues that you’re facing. 

The second question you may have is Who are you guys? Who is Phil Sherwood and Tom Wierman? And that’s another great question. Tom, why don’t you tell us a little bit about yourself and your background?

Tom: Sure. So I’m the current COPAS Executive Director. I started my role in March of 2012. And I’ve been executive director since then. So my day to day responsibility is really the Member Association. Managing the organization for the Council of Petroleum Accountant Societies. And so before that, I actually worked in industry, I was at Koch Industries for 30 years. I ended my career there. I have probably done the majority of my time in EMP, exploration and production; I was the controller. 

I served other functions in that particular company as well. I ended my career in financial reporting for Flint Hills Resources. But, you know, 30 years is a long time to see a lot of different issues. And, you know, things are certainly complex. They got more complex every day as we went through this, but I think, you know, just just the opportunity for me to have experienced what some of the people who we hope will hear this podcast are going through, you know, I actually had an opportunity to do some of those things. My role has changed certainly now, where I’m at, but I think I even as the executive director of COPAS I can bring some perspective to this

Phil: Okay, and I’m Phil Sherwood, and I’ve been involved in oil and gas accounting for 28 years now. I started out consulting with small companies and helping them set up their accounting systems. And around the same time, I helped a couple of oil and gas operators set up their offices with personal computers and accounting software. And after trying to get their work done with the accounting systems available at that time, they asked if I could write some accounting software for oil and gas. And so that’s how I started with oil and gas and accounting. 

But over the last 28 years, I’ve learned a lot of accounting. And I’ve learned a lot of oil and gas by helping hundreds of independent oil and gas operators run their companies by providing the software that they use to do that. So as far as the podcast goes, I’ll be coming at the topics we cover from a systems perspective, digging into how things work and how to set up the systems to make them work. Tom, what’s going to be your question?

Tom: I’m clearly coming at it from an accounting perspective, you know, just different things. Some of it will be how we go about answering accounting questions when we don’t know. 

So for example, the first topic that we’ll have coming up in our podcast is building a knowledge network. We’ve got a great guest coming on that will help us really understand how he went about building his knowledge network, but more importantly a very recent example where he saved his company thousands of dollars, just because he had a knowledge network and was able to draw on that. 

Recently too, we’ve had the negative oil price go negative. I’ve ever seen that in my career. I’ve seen it go really low but I’ve never seen it go negative. So we’re going to try to get somebody on to have an opportunity to discuss what does that really mean? You know, how is accounting affected by the negative price and really what does negative oil price mean? 

Some other things that I could think of that we’ll talk about sales and use tax, certainly something where you can save your company some money if you really understand that. Severance tax issues, legislative regulatory issues, understanding a lease and what’s in a lease? What are the lease basics? 

This is self serving a little bit, maybe we’ll talk about COPAS energy education and some of the things that my organization brings to the table in terms of training. The Accredited Petroleum Accountant Exam will be a topic. 

We’ll talk about some other things too, all the way down from, you know, what does the land man do? What does roughneck do? Finding a drilling location, drilling a well, some of those kinds of things? So, really trying to bring some perspective to that for our listeners.

Phil: Yeah and then from the system side, you know, some of the things we’ll be covering are some practical tips, like, digging into Excel, what are some great tips for using Excel that will increase your productivity by 10 times, looking at some of the different software that’s available to help the oil and gas accountant. 

We’ll dig into those and interview some folks who are using those, and even some folks who are running those companies that built that software. SoI think you’re gonna really enjoy the topics that we’ve got coming your way.

Tom: I’m really excited about what you’re going to be bringing from a system perspective, just because those are the kinds of things I like to do. I mean that that was a lot of what I did was extract information from the system and really get it into an Excel spreadsheet and kind of tell a story. And so you know, sometimes the system might be a little limited on how you can get information. But I’m anxious to hear what you have to say.

Phil: Yeah, I think we could both nerd out on data and how data can tell stories. And we probably will at times, so just be prepared. But it’s going to be a fun time. And like Tom said, there are some really great, great topics, some really great guests we’re going to have on here that are experts in their field, and they’ll be bringing some relevant information that you can use right away. 

So one thing we’d like to ask of you to start with is if you could, and would just go subscribe when iTunes you can go subscribe to the podcast. And after you’ve heard a few episodes, give us a review because reviews and subscriptions will help us get up in the rankings and help us get more listeners and help get the message out to more folks.

Tom: Certainly, you know, send us a topic that you’d like to hear about. We’ll find somebody that will come on and discuss that.

Phil: That’s a great point. Yeah. If you have any suggestions for topics we should cover, be sure to let us know. And our website is oilandgasaccountingpodcast.com. That’s where you can find us and find the show notes. And we’ll have show notes after each episode. 

You can also find us wherever you listen to podcasts. We’re going to be on iTunes, we’re on Stitcher, we’re on Google. We’re on Spotify. So wherever you listen to your podcast, look us up the Oil and Gas Accounting Podcast and there will be. Thanks for listening. Tom, I’ll talk to you next time.

Tom: Thank you so much. Have a great day, Phil.

About SherWare:

SherWare creates software to simplify your accounting needs so you have more time to do the things that matter. We serve independent oil and gas operators, accountants and investors with a platform to manage their distributions and joint-interest billings on a platform — and we’re the only software on the market that can integrate with your QuickBooks company.

Click here to watch a demo of the software in action right now.

About COPAS:

COPAS provides expertise for the oil and gas industry through the development of Model Form Accounting Procedures, publications, and education. We are a forum for the active exchange of ideas which result in innovative business and accounting solutions.

Find a society near you.

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