Like any other service sector, Accounting services is vital for oil and gas industry companies also. Being the biggest energy sector in the world, the oil and gas sector acts as a global powerhouse for millions of workers worldwide oil and gas companies contribute a significant amount towards national GDP. The world's dependence on oil and gas is showing an increasing trend due to the reliance on global economies on infrastructure. Oil and gas production is on the periphery of growth, even amid the weakened global economy. As Dubai is rich in energy resources the production level will never go low phase. Accounting for oil and gas companies delves into acquisition, exploration, development, and production activities, covering many industry-specific accounting issues. The oil and gas industry work on a multitude of activities which are integral to their foundation. These supply chain activities are frequently configured due to the latest innovations in technology.
The oil and gas supply chain activities are based on various industries which include:
Upstream: Exploration activities for the resources. Business characteristics are as follows: high risk and return, Highly regulated, technology and capital-intensive. Consists of:
Midstream: Transportation, storage and processing of resources extracted. Major activities include:
Downstream: Refining of the raw materials extracted. The sectors include:
Accounting for oil and gas companies are of two types:
Full Costs (FC) method: It includes the entire costs of the process which are:
Successful Efforts (SE) method: Unsuccessful exploration results of dry holes to be expensed as incurred. Other adjustments are:
CDA Accounting and Bookkeeping Services LLC as a team of highly qualified professionals and experts we assure quality accounting services for oil and gas companies with at most care and maintain high ethical values. Our services are:
Accounting services help to display an accurate and fair picture of the financial affairs of the business. CDA takes the following steps to help a company complete its Accounting and bookkeeping services:
Business advisory services emphasis on making strategies for the success and growth of a business. The advisors are a collection of business coaches, mentors and accountants. Include:
Preparation of monthly budget vs actuals reports, management reports upon a request of the owner or manager and developing of accounting policy and reports.
Ensuring proper internal controls and frequent review of accounts with accuracy and materiality.
Our external audit services include the following functions:
CDA provides the following VAT Accounting Services for oil and gas companies:
As a certified team of experts, we handle a wide range of clients from the activities in the oil industry. Our services include accountancy services, from management accounts and business planning to VAT returns along with CFO and Internal Audit Services. Our client portfolio is evidence of our excellent accounting services for oil and gas companies.
“Highly impressed with the team coordination and prompt works, all the best to the team and wish to associate in future too”
Finance Manager, French Industrial Technology LLC
As accounting consultants, we conduct a study on our client’s requirements and recommend the suitable accounting software pertaining to the client’s needs.
Our prices are in competitive nature, we charge 50% advance payment for all our services. Our hourly rates are based on accounting software used, company type, contract term, skill, experience and frequency of visits.
(1) To track the sales: keeping track of your sales, balancing the cash for those that need an expert & professional team is required to handle all this. (2) Controlling Expenses: Firstly each business needs to understand what is their current position on controlling expenses. By hiring an accounting professional, you can find out where your business position is standing which will help you to manage or control your both direct and indirect expenses wisely.
When the partners obtain more than the earned revenue it’s called over lift.
The additional categories in plant, property, equipment are (1) exploration, development and production license, (2) O&G extracting assets, (3) purchase and sales contracts, (4) environmental provisions.
Yes, we recommend accounting the cost incurred through the reverse charge mechanism in order to match with Vat Reports on Vat submission.
Companies need to pay a financial penalty for every month that an audited financial report is outstanding. Companies can request for an extension of the deadline for the submission of these reports.
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