Oilfield Services: Complex Financial Reporting: Process & Reporting Enhancement
During the first few months as the new Chief Accounting Officer (CAO) of a global gas compression services company (the Company), the CAO unknowingly reported inaccurate financial reports to the Company’s key stakeholders. These financial reports were the result of heavily dependent ad hoc and inconsistent, manual procedures. Without the proper tools, the accounting department was burdened by a perpetual month-end close process, and, as a result, it did not have time to refine its processes and systems. Understanding this was unacceptable, the CAO engaged Opportune to streamline the existing reporting processes and build a solution to produce an accurate and consistent package of monthly financial reports on a monthly basis.
Opportune responded quickly by deploying a hybrid team of professionals from its Complex Financial Reporting (CFR) and Process and Technology (P&T) practices to perform a top-down analysis of the business’s accounting processes and reporting requirements. The team collaborated with multiple departments within the Company to clearly identify and refine operational and financial reporting requirements. Based on these requirements, Opportune streamlined, automated, and consolidated the previous reporting procedure into an efficient financial reporting process. Leveraging knowledge and experience from the CFR and P&T practices, the team developed, deployed, and supported a custom SQL-based accounting system that processes large quantities of raw trial balance data, producing a full suite of accurate financial reports.
The new reporting processes and system reduced the monthly close process consistently to consistently less than 15 days, while reducing the required FTE resources by half. Furthermore, the new financial reporting system was SOX compliant and satisfied the Company’s external auditor financial reporting standards. Ultimately, the ability to produce accurate monthly financial reports each month instilled confidence in the CAO and the Company’s stakeholders.
Opportune employs a team approach to solving complex issues that facing management teams face in today’s evolving energy industry. Whether our clients need to improve financial reporting processes, seek to deploy or update technology systems with assistance from a professional technology consulting firm, or undertake a business transformation, we have the expertise to offer them substantial, clear-sighted recommendations and strategic support. Our expertise rivals the multi-national firms, while our focus on the energy market and personalized client service make us a unique player in this advisory arena, offering professional financial and technology consulting. For additional information, click here.