Critical Time- and Cost-Saving Measures by Way of Journal Entry Automation07/23/2019
By definition, automation is “the technique of making an apparatus, a process, or a system operate automatically” (Merriam-Webster). In other words, eliminating the most tedious and time-consuming work for an individual, group, or department.
When applied to oil and gas accounting, automation means employing a process that simplifies everyday tasks, strengthens cross-company communications, and reduces processing time.
Manual journal entries are an integral part of oil and gas accounting – a fact of life in this industry. Journal entries are created for a variety of purposes like corrections or as part of the monthly close process. They’re highly repetitive tasks that can be simple (a two-line entry) or complex (thousands of detailed line items).
Steps in the Manual Journal Entry Process
- Data entry/prep and upload
- Data analysis (usually completed in a spreadsheet)
- Printing & saving reports and sourcing documents
- Routing for approval (email, sneaker-net)
- Waiting for approval and posting of journal entries
- Printing & saving posting report(s) and sourcing documents
- Completing the audit package with approver details & notes
The time it takes to complete all of the aforementioned steps is significant. What if you could save 15 minutes per journal entry?
Utilizing a workflow automation tool like P2 Workflow will reduce personnel expenditure when going through the journal entry process. Your accounting department will reap specific benefits and be able to:
- Automate P2 Workflow case creation
- Automatically attach reports without the hassle of printing or file saving
- Automatically route journal entries and supporting documents for approval
- Automatically approve posts in the system and retrieve posting report(s)
- Automatically create an audit package and save to a document repository, ensuring details are always available for review
This is truly “do more with less” in action. Spending your time doing the truly valuable work – like analyzing information and ensuring correct journal entries – is what matters. Using a tool that enables “doing more” is advantageous for those who have “less” human capital, or less time and resources. Technology-enabled software is the answer to creating better practices and processes while saving time and money.
Time & Cost Savings
So, what if you could save 15 minutes, on average, for every journal entry? That adds up to a bounty of time saved over the course of a year.
|Journal Entries per Month||Hours per Month||Hours per Year|
As you can see, P2 Workflow creates long-term efficiencies. For a closer look at how this tool can impact your day-to-day accounting functions, watch our recent 20-minute webinar that shows you how the automated journal entry process happens.
About The Author
Tim Wadle, vice president of product management at P2 Energy Solutions, has more than 20 years of experience developing software solutions for oil and gas companies and has served on many industry committees, including the American Petroleum Institute’s Committee on Production Measurement & Allocation and the Energistics PRODML Executive Committee. His work has been published in Oilfield Technology magazine and he has been a featured speaker at the Offshore Technology and AICPA Conferences. When he’s not behind his desk, you’ll find Tim skiing Colorado’s slopes or biking its trails.