What s Your Current System Costing You?

Transcription

1 SherWare s What s Your Current System Costing You? Worksheet & Brief Guide

2 Have you ever calculated how much time is wasted on cumbersome software that is hard to navigate and impossible to make corrections in? Or how much time is lost when the software takes hours to process reports? If you re still computing calculations for owners, bills and revenue by hand, you re spending hours doing manually work that could be automated including year-end processing, state compliance reporting, division of interest calculations and more. Fill in the blanks on the worksheet on the next page to see for yourself how much your current solution is costing you. If you handle the distributions for your company, you have plenty of challenges without having the additional stress of manually calculating everyone s fair share of revenue and expenses, or making sure the reports you send our to owners are easy for them to decipher -- even if they aren t in the industry. Division orders, royalty checks, revenue distributions, joint interest billing, and reporting deadlines; production adjustments, interest transfers, returned checks, and tracking suspense balances add to the daily headaches in the oil and gas industry. Sound familiar? Are you unsatisfied with the COST or USABILITY of your current software? Starting or restructuring your current operation? We can help! In 1994 we created our oil & gas accounting software because a group of operators were looking for an easier way to handle distributions. We haven t changed the process 20 years later, as we still look to our operators and owners from across the U.S. to tell us what they need in the software to make their businesses run smoother. We still look to our operators and owners across the country to tell us how make the software better - 20 years later.

3 WORKSHEET: What s your current system costing you? $2,500 $ (2 x 50 x Box A) $ Box A (10 x 50 x Box A) $ hourly wage of position handling distributions (including benefits added in, if applicable) $ spent on accounting fees to outside firm, year-end tax preparation, etc. *The average cost saved to not have to hire an accountant to sort through and prepare year-end taxes is $2,500 because they can hand over financial reports already calculated saving them time of gathering all the data and the accountant time in having to compute the reports themself after you ve gathered your data.* Number of hours saved a week fielding royalty owner questions *Our clients have reported a decrease in the amount of time spent on the phone fielding questions regarding owner statements and stubs since using Sher- Ware s built in reporting. ** Number of hours saved per week on distributions since switching to SherWare s software *The average number is 8-12 hours per week reported saved thanks to having a streamlined distribution and accounting system that is automated.* $ (40 x Box A) $ (40 x Box A) Number of hours saved per year for end of year processing including 1099s, W2s, etc. *On average our clients save 40 hours per year because 1099s can be created automatically and submitted electronically and W2s are automatically generated.* Number of hours saved per year on state compliance reporting with Sher- Ware s state reporting capabilities for OH, WV, TX, LA, WY, NY, OK, PA and WY The average number of hours saved by having the software automatically calculate state compliance reports is 38 hours. $ (Total B & C ) *optional* $ (Add up boxes above) Going Paperless: *By using our optional modules of direct deposit, ing statements and reports and online reporting our cliens have significantly cut down time and resources required to mail statements to owners.* Number of Owner Distribution Statements & Checks mailed /mo Multiply that number by 12, then multiply it by $0.46 Total B Number of hours spent stuffing envelopes Multiply that number by your hourly wage from top GRAND TOTAL OF SAVINGS PER YEAR Total C

4 Now how do we actually save you that much money? Let me introduce you to how our software programs work. All three programs are set up the same way, so once you see how we handle distributions, you just need to decide how you want to handle your accounting. As you look through how our software works, an asterisk will be besides each feature that directly speeds up your distributions.

5 INDEX HOW THE SOFTWARE WORKS (PART 1) SETTING UP YOUR SOFTWARE REVENUE/EXPENSE ENTRY DISTRIBUTION CHECKS REPORTING WHICH PROGRAM IS RIGHT FOR YOU (PART 2) ACCOUNTING MANAGER DISBURSEMENT AND JIB MANAGER INTEGRATED EDITION DISBURSEMENT AND JIB MANAGER WELL PROFITS CHOOSE OPTIONS TO BENEFIT YOU (PART 3) AN ONGOING RELATIONSHIP (PART 4) YOUR NEXT STEP MORE INFO ONLINE DEMO PURCHASE

6 PART 1 HOW THE SOFTWARE WORKS

7 SETTING UP YOUR SOFTWARE The first step to processing your distributions is to input the basic records that will be the framework for your distributions, so that when you begin your data entry, everything is ready at your fingertips. DEFINE COMPANIES We choose to set up the software by tracking the distributions by companies. Each company represents an entity that operates wells and will have its own chart of accounts. Bookkeepers may have a company set up for each client, while small operators may only need to have one company set up. Within each company, you will then set up your wells and royalty and working interest owners. DEFINE WELLS A well represents a billable unit. All revenue and expenses will be tracked by well. Typically every well will represent a well. However, it can be setup to represent multiple wells, a lease or a meter if desired. DEFINE OWNERS Owners are entities that hold any type of interest in a well that you operate. *DEFINE INTERESTS* Once you have set up your wells and owners, they are associated with each other on the Division of Interest (DOI) window. A DOI record will exist for every interest that an owner has. Each DOI record determines owner s interest, interest type (Royalty, Override or Working Interest) and whether revenue or expenses should be netted on one statement (Netted Check) or split up between both a check (for all revenue) and a bill (for all expenses). wells owndivision of inter- Our software tracks percentages entered for the wells and shows the percentages and if it equals 100 percent or not, so your wells are always being distributed as expected. 5 > >

8 DEFINE GROUPS Revenue Distributions and JIB Processing will be accounted for by group and each well will be associated with a group. Typically only one group is used so that the software processes everything at the same time; but having the ability to process by multiple groups is helpful if you want to process your distribution by state, county, investment date or any other criteria. DEFINE VENDORS/PURCHASERS Any entity that will send you a bill can be set up as a vendor. Any entity that will send you a production check can be set up as a purchaser. DEFINE REVENUE/EXPENSE CODES When entering revenue/expenses into SherWare, you will have to select a revenue/ expense code to associate each line with. These codes determine the wording that appears on the investor s statements. REVENUE & EXPENSE ENTRY Revenue and expenses will be entered into SherWare as you receive them. PRODUCTION RECEIPTS Enter each check as it is received on the Production Receipts window. Gross revenue, tax and any other deduction totals will be entered in the yellow section one line at a time. As each line is completed they will accumulate in the bottom of the window. Continue adding lines until the Total Amount field adds up to the amount of the check. Activity from any well or production period can be entered here. This makes it easy to make corrections as they are reported to you. ENTER BILLS Any bills received will be handled on the Enter Bills window, which has the same layout and entry as the Production Receipts window. Each detail line allows you to associate the expenses to a well, DOI class, production period, and expense code. The payables 6

9 will be tracked and vendor checks can be created from within SherWare. Bills for both well and non-related wells can be entered on this screen, and you also have the option to allocate expense evenly among several wells. OTHER WINDOWS Several other windows and processes are also available for certain situations. Gas Meter Reconciliation - Allows you to easily enter a check for multiple gas wells where you need to account for line loss and allocate the revenue proportionally based on individual well meters. Fixed Expenses and Recurring Bills - Can be set up as templates to save time with recurring expenses like Operating Fees. Operator charged expenses can be entered in a way that it doesn t create a payable for yourself. Expenses can be allocated evenly among selected wells. DISTRIBUTION Once the activity has been entered for the desired distribution period, it can be processed to create checks and statements. This is what we at SherWare have termed closing a run. The distribution will process all activity entered with a date prior to the cut off date you choose. It doesn t matter what month the activity actually took place, and you don t have to wait until everything for a specific period has been entered before closing. If something comes in late, you can simply add it to the next distribution. The reporting in our software allows you to view activity based on when it was processed on a distribution or when the actual activity took place. Even if activity for a particular month was processed on multiple distributions, you can still see a report for that particular month showing all activity regardless of what distribution it was processed on. The reporting you send to your investors will display the production period the activity is from. DID YOU KNOW? The term closing a run originated from the idea of a run ticket from when oil is picked up by a purchaser. 7

10 JIB CLOSING The JIB closing will process expenses. Detailed JIB invoices are created for each investor showing their share of all well expenses. The JIB closing is optional. If you choose to net all revenue and expenses together then you will not process a JIB closing. REVENUE CLOSING The Revenue closing will process all revenue. If you choose to net all revenue and expenses together for an interest, then both revenue and expenses will be processed at this time. Checks will be created for each owner. SUSPENSE Balances created for an owner during the Revenue closing are stored as suspense. All suspense will be tracked and will automatically be held or released when applicable. Deficit suspense is a receivable created when an investor has more expenses than revenue. Minimum suspense is a payable created when an owner doesn t earn enough money to cover the specified minimum check amount. Legal suspense can either be a positive or negative amount and is created when an owner is flagged on either the owner or interest level as on hold because of a legal reason or because you cannot locate them. ALLOCATION FILE The Allocation File is a feature that prevents revenue/expenses from processing on a Revenue or JIB closing. Amounts can be placed in an allocation file if you need to enter them now but don t want the activity to process on the next distribution. Once the next distribution is completed, you can release the activity from the allocation file and it will then process on the following distribution. The allocation file can also be used in situations where you do only want to process revenue/expenses from a particular production period at one time. A setup option will allow you to initially place everything in this allocation file. When you are ready to do a distribution you can then go through and pick which activity you want to process. They can be released from the allocation file, then only the released activity will be included on a distribution. 8

11 CHECKS Checks are created and can be printed from within SherWare. They can easily be voided, re-issued, or re-issued to multiple parties when necessary. The format of the check layout can be easily modified to align with just about any type of check stock. DISTRIBUTION CHECKS Checks created by the Revenue closing will be printed from within SherWare. The stub will include all detail that is necessary for the industry. An owner will receive one check for all wells that they have an interest in. VENDOR CHECKS All bills that are due will populate the Pay Bills window. Select bills to be paid and choose to create checks directly from this screen. OTHER CHECKS Various optional modules will allow you to create checks for reasons like payroll, delay rental payments, or any general cash disbursement. *REPORTING* Our software includes more than 150 pre-created reports. Several options exist on each report to allow you to view them with different information or sorted in different ways. You can report on unprocessed activity, activity for a particular distribution, activity for a particular production period regardless of when it was processed, or activity for a range of time. Reports can be exported to Excel. An optional report designer will allow you to create your own reports. Our reports are known in the industry for being easy to understand, whether you re an operator or landowner who no knowledge of the oil & gas lingo, which reduces questions your office fields needing reports and numbers to be explained. *1099 PROCESSING* 1099s can be created from within the software for either paper or electronic filing. We partner with Nelco, an outside vendor that automatically files your 1099s for you, saving you hours of time and postage. 9

12 PART 2 WHICH PROGRAM IS RIGHT FOR YOU? #1 #2 #3 #4....????

13 SherWare has a solution for operators, investors and accountants of all sizes. It is a program you can grow with from a handful of wells up to thousands of wells and/or multiple companies/clients. With easy-to-use screens, industry-specific reports and time-saving features, the only thing you ll need to decide on is which option works best for you. WHICH PROGRAM IS RIGHT FOR YOU? Revenue Distribution & JIB Processing Revenue Distribution & JIB Processing Revenue Distribution & JIB Processing Investor Only Full Chart of Accounts Uses QuickBooks Chart of Accounts Best option for companies that want a full accounting program. Allows you to have one software program and deal with one company. Best option for companies that already have, use or like QuickBooks. Best option for operators that are using a different program for the accounting side, or have a bookkeeper that handles the accounting in another office. Best option for entities that have mineral interests to track, but do not operate Optional payroll module available Payroll option available through QuickBooks No payroll option available No payroll option available 11

14 ACCOUNTING MANAGER YOU WANT A PROGRAM TO HANDLE ALL ACCOUNTING & OIL & GAS DISTRIBUTIONS If you want SherWare to handle ALL of your accounting AND oil and gas distributions, then you will be interested in finding out more about the Accounting Manager. The Accounting Manager is an easy-to-use accounting system that was created with the help of oil & gas accountants and producers/operators. It includes the following modules: General Ledger Payroll Accounts Payable Revenue Distribution Accounts Receivable Joint Interest Billing Invoicing With the Accounting Manager you have complete control over your accounting, yet it provides the security and audit trails you need to feel confident about protecting your data. We have no limits as to the number of companies, wells, owners, customers or accounts you can create in the software. It was created to grow with whatever size company you are -- both large and small. To get an inside look at how the Accounting Manager will streamline your distributions and finances, download our Insider Guide. Download by typing this link or clicking the graphic below: 12

15 DISBURSEMENT AND JIB MANAGER INTEGRATED EDITION YOU WANT YOUR OIL & GAS DISTRIBUTIONS TO WORK WITH YOUR QUICKBOOKS COMPANY If you already use QUICKBOOKS to handle the books at your office and would like to be able to still use it, but would like SherWare to handle your oil and gas distributions, then you will be interested in finding out more about our Disbursement and JIB Manager Integrated Edition that integrates with your QuickBooks company. The Disbursement and JIB Manager Integrated Edition (DMIE) is the only revenue distribution and joint interest billing software available that integrates directly with your QuickBooks company. For those who are familiar with and love the ease with which you use QuickBooks, you will love how seamlessly SherWare integrates with it. Designed with flexibility, it easily handles corrections and the complex nature of oil and gas accounting. The real time QuickBooks integration posts data into QuickBooks as you enter it. This allows you to always have up to the minute information in both programs. To get an inside look at how the Disbursement and JIB Manager Integrated Edition will simplify your distributions, download our Insider Guide. Download by typing this link or clicking the graphic below: 13

16 DISBURSEMENT AND JIB MANAGER YOU ONLY NEED TO HANDLE YOUR OIL AND GAS DISTRIBUTIONS If you already have your accounting figured out and ONLY want SherWare to handle your oil and gas distributions, then you ll be interested in finding out more about the Disbursement and JIB Manager. The Disbursement and JIB Manager contains everything needed to disburse your revenue and/or bill for expenses. With no accounting integration, this package allows you to track the oil and gas side of your business with all the industry detail you need. The software can handle an unlimited amount of companies, wells and owners. To get an inside look at how the Disbursement and JIB Manager will streamline your distributions and finances, download our Insider Guide. Download by typing this link or clicking the graphic below: 14

17 WELL PROFITS YOU WANT TO TRACK YOUR INVESTMENTS AND INTERESTS If you are an investor, accountant or someone who wants to track their mineral interests in oil and gas wells and doesn t operate the well, then you will be interested in finding out more about Well Profits investment tracking software. The software works in three simple steps: 1. Track revenue acquired from investments with full detail by entering production receipts and check stubs received into the software. 2. Deduct expenses incurred on the leases by tracking bills received from the operator. 3. Create robust reports from the data entered or imported into Well Profits using more than 20 pre-created reports or design your own. The software can handle unlimited companies and has a version that can stand alone or integrate with your QuickBooks company. To get an inside look at how easy you ll track investments and make real-time decisions on profit and loss, download our Insider Guide. Download by typing this link or clicking below: 15

18 PART 3 CHOOSE OPTIONS TO BENEFIT YOU

19 OPTIONAL MODULES At SherWare we only want you to purchase the features that you need for your company -- making our software customizable to your specific needs. Everything in parts 1 & 2 are included with our software. Below are our optional modules you can add on to enhance your revenue distribution and joint interest billing software. PAYROLL MODULE Easily process and track payroll. Deduction and tax calculations are done automatically, eliminating the need for manual calculations. Prints 941 worksheets and W2s. LAND MODULE Use our simple lease obligation tracking system for delay rentals and other obligations related to leases. AFE MODULE Create an authorization for expenditure to show an investor what the costs are estimated to be for drilling or working over a particular well. HOUSE GAS MODULE Track and bill gas usage for a homeowner who is using your gas. OFFSITE LICENSE If you d like the option to use your distribution software at more than one location or office, purchase an offsite license to use the software where you d like. DIRECT DEPOSIT MODULE Pay your owners electronically. ONLINE REPORTING MODULE With your help, we will design a website for your company to allow your owners to access their owner distribution statements, check stubs, 1099s and tax information securely. ADVANCED REPORTING MODULE Design and create your own reports in minutes with Stonefield s Ad-Hoc Report Writer License. 17

20 OFFSITE BACKUP Backup your SherWare data over a fast Internet connection to a secure backup server located in our office. DOCUMENT MANAGER MODULE Go paperless and attach scanned images, Word documents, Excel spreadsheets and PDFs to leases, wells and AP bills. Optional integration available with Treeno Software Cloud Document Management system, so you can store your documents in the cloud and access them from SherWare. CLOUD HOSTING WITH NOVEL ASPECT Install SherWare s software in the cloud and access it from anywhere, including tablets, laptops, desktops, etc. For more information on a specific module, please visit our website: 18

21 PART 4 AN ONGOING RELATIONSHIP

22 We take pride in how we treat our clients at SherWare. It s what has made us successful over the past 20 years. When you purchase our software, we want to make sure you purchase the best software to fit your business needs, understand how to use the software right from the beginning, and have support and help whenever you need it for the lifetime of your software. Here are ways we care and work with you: GETTING STARTED We provide a few free consulting sessions when you purchase the software. These are designed to help you get a quick and smooth start. A general format is followed, but each session is catered to what you most need help with at that time so that your distributions are seamless from the first one. TECHNICAL SUPPORT Phone, , fax and instant messaging support is available for the software. This is included in your support plan when you purchase and is unlimited. After the first year, you can choose to renew the support and at what level of support you d like to receive. UPDATES Updates to the software are released from time to time. These are important because of changes on the state or federal levels for 1099s, payroll and any other pertinent update you may need to run the software smoothly. TRAINING Additional training is available at any time for anyone in your company. Most training is completed online and tailored to whatever questions you have. Onsite training is also available if you prefer to work in person and learn the software. 20

23 YOUR NEXT STEP Now that you ve read through our brief guide to our four software products, you should have an idea of which software would fit your needs best. >> GET A DETAILED INSIDE LOOK AT OUR SOFTWARE Click on the Insider Guide link for the software product that you think would be the best fit to learn more information about that specific program including screenshots sample reports. Accounting Manager Software: Disbursement and JIB Manager Integrated Edition Software: dmie-insiderguide Disbursement and JIB Manager Software: Well Profits Software: >> SCHEDULE AN ONLINE DEMO We would love to meet with you online for a live demo of the software. We can show you in more detail the information presented in this guide so that you can get a hands on feel for how it works and ask any questions about how it you d handle your distributions in it. Click here to schedule a demo on our calendar. >> PURCHASE THE SOFTWARE If at any time you d like to purchase the software, you can contact us to purchase the software at , or send an to sales@sherware.com and we ll contact you right away to complete your purchase. Address: 4182 Clemmons Rd #285 Clemmons, NC sales@sherware.com Phone: Website: