The Benefits of Hedge Management Using ETRM Software
- May 19, 2022
- Posted by: Anand SEO
Oil and gas accounting operations are getting complex. That is why businesses need a complete, integrated ETRM+ERP solution that not only manages trading and risk management but also seamlessly handles financial accounting and reporting.
In this article, we will understand how an ETRM software can support oil and and gas industry in automating accounting, settlement and invoicing.
Why Does Oil and Gas Industry Need an ETRM Software?
With evolving trading landscape and regulations, it has become imperative for oil and gas companies to find ways to increase productivity, reduce operational costs, streamline tasks, monitor and manage risk, and optimise processes.
ETRM software is successfully used by businesses to streamline their operations in a single integrated workflow including
Trade capture—physical and financial
Risk management and reporting— trade valuations, PnL, mark-to-market, and hedge accounting
Accounting, settlements, and invoicing
Scheduling and movements on pipelines, vessels, rail cars, storage tanks, etc.
Complaince and so on
Moreover, an ETRM eliminates the need to handle data manually between different systems and processes during trading, accounting, credit, and scheduling to make sure your reconcialitions are quick and accurate.
How Can an ETRM Support Oil and Gas Accounting, Settlement, and Invoicing
An in-built oil and gas accounting software in your ETRM can help you integrate general ledger, accounts payable, and accounts receivable to ensure your data is up-to-date for single version of truth. You can seamlessly streamline
Automated cheque runs
Net billing and settlements
Financial reporting, etc.
This means you eliminate information silos among your systems and team, reduce time in closing and approval cycles, and automate payments.
What Should Your ETRM+ERP Offer for Oil and Gas Accounting
Most importantly, when it comes to solutions for oil and gas companies, the top features include accounting, asset and tax management, compliance and audit, land management as well as production. With that being said, these are the must haves.
True-cloud based: A cloud based solution ensures ease-of-use, remote, real-time accessibility, scalability for growing needs, and security from data theft.
Fast integration and implementation: You may not want to spend money and time on customization. You require a solution that can integrate with your existing data feeds and also adapt to your needs to ensure rapid implementation and minimal involvement of hardware.
Advanced analytics and real-time reporting: Real-time insights are critical in financial information. Based on your business needs, you can focus on indicators and personalise dashboards for powerful and flexible reporting. Since oil and gas companies have complex reporting requirements including tax and AFE reporting, an all-incluisve solution can still provide you a unifiled ledger with one version of truth.
An industry-specific ETRM+ERP solution can give you the competitive edge needed for your business to succeed. To know more how Inatech solutions can support your oil and gas accounting, settlement, and invoicing, visit Techoil.