What is PakEnergy's Accounting ERP, and what industries does it serve?

PakEnergy Accounting is an industry-tailored Energy ERP (Enterprise Resource Planning) system designed to manage complex financial and operational workflows. It is built with over 35+ years of expertise specifically for the needs of upstream E&P operators, midstream first purchasers, investors, and renewables developers. We provide a scalable SaaS solution to unify your back office and field operations.

How does PakEnergy ensure compliance and accuracy in financial reporting?

PakEnergy Accounting ensures accuracy and minimizes compliance risk by providing audit-ready workflows and embedded regulatory knowledge. Our features support SOX-ready standards, offer precise royalty and tax reporting, and handle necessary filings such as 1099s and state-level escheat compliance. The system uses real-time data and comprehensive audit trails, allowing your back office to operate with complete transparency.

Does the PakEnergy system handle specialized oil & gas billing processes like JIB and Revenue Distribution?

Yes. Our system is built around the core financial needs of the energy sector. The integrated Joint Interest Billing (JIB) module automatically allocates costs to investors and partners, supporting multiple AFE (Authorization for Expenditure) netting options and different overhead rates. Additionally, the Revenue Distribution module simplifies the complex process of correctly calculating and distributing revenue to owners, ensuring timely and accurate payments.

Is the PakEnergy platform scalable for growing companies?

Absolutely. One of our core strengths is that PakEnergy is a scalable cloud-based SaaS platform. This means your accounting operations can grow without adding headcount. The unified, end-to-end structure is designed to handle expansions, acquisitions, and increasing transaction volumes efficiently, allowing you to modernize legacy systems and focus on growth.

Can I integrate accounting data with my field operations and production software?

Yes, that is the core advantage of the PakEnergy platform. Our accounting solution provides end-to-end automation that links seamlessly with modules like Pak Land, Pak Production and OnPing. This integration gives you real-time visibility into operational costs, production volumes, and financial performance, effectively automating workflows from field to finance.

Oil and Gas Accounting Reconciliations Without Headaches

Oil and gas accounting can be complicated, with intricacies that include joint ventures, numerous transactions, and rigorous reporting standards. As a prime example, interest reconciliations require a focus on Joint Interest Billing (JIB) and revenue distribution.

Failing to reconcile interest disbursements promptly and accurately can damage an organization’s credibility and bottom line. Many energy accountants are leveraging automation tools, including specialized accounting software, to simplify interest reconciliations and improve financial reporting accuracy.

Why Are Interest Reconciliations Complicated?

Take the pain out of oil and gas accounting reconciliations with PakEnergy

Navigating industry-specific tax regulations and accounting standards, such as SEC and GAAP, requires specialized tools and expertise. Joint operating agreements (JOAs) set terms for allocating and reconciling expenses.

Additional factors, such as manual data entry, disconnected systems, and data silos, are a recipe for errors, inconsistencies, and timing discrepancies, further delaying the reconciliation process. Reconciling gas imbalances to mitigate landowner disputes requires specific agreements and complex calculations, creating additional hurdles and delays.

How to Work Interest Disbursements Effectively

Establish Robust Internal Controls

Set up multi-level approvals for substantial expenditures, such as exploration and development costs. Implement standardized accounting procedures across all operations to maintain consistency and accuracy. Review JIB statements promptly to prevent discrepancies or unauthorized charges, and perform regular audits to verify cost allocation correctness.

Engage with Stakeholders

Maintain thorough records for all transactions, including receipts, invoices, and payment confirmations. Communicate effectively with joint venture partners to minimize discrepancies and disputes. Provide detailed reports for non-operators, including well-level expenses and accounts receivable aging, to ensure transparency and accountability.

Mitigate Potential Risks

If applicable, define how gas imbalances will be reconciled, whether through future production adjustments (true-up) or cash settlements. Use a volume factor to bridge the gap between theoretical calculations and actual measurements. When uncovering previously undetected reconciliation differences, verify and post the necessary adjustments before the close of the current accounting period.

Improve clarity, accuracy, and confidence in your oil and gas reconciliations.

Leverage Automation Tools

Utilize specialized accounting software to automate complex calculations, verify data accuracy, and improve efficiency in JIB and revenue distribution. The platform should also securely integrate your production and financial systems, giving you real-time visibility into financial data across all operations.

PakEnergy Accounting—Smart Accounting Solutions that Simplify Interest Reconciliations

Accounting for interest disbursements doesn’t have to be difficult. PakEnergy’s accounting software streamlines interest reconciliations, delivering seamless integration and automation across all financial systems and workflows. With bank-grade security, our scalable, cloud-based O&G accounting platform streamlines processes for JIB, AFE, and revenue distribution, allowing you to focus on what you do best—running a successful business.

Want to learn more about PakEnergy’s accounting solutions? Book your free demo today and take the first step towards automating your financial operations.