How to Choose the Right ARO Software
Asset Retirement Obligation (ARO) Software is used by energy companies in order to best support asset retirement obligation accounting. Energy companies employ ARO Software to automate data management, perform accurate accounting processes, and support regulatory reporting requirements.
The Financial Accounting Standards Board (FASB) requires companies to report data associated with retirement of tangible long-lived assets and the associated asset retirement costs as a result of acquisitions, construction, development, and the normal operations of a long-lived asset according to Statement No. 143 in the Statement of Financial Accounting Standards (SFAS). ARO accounting can be complex and monotonous, so companies use ARO Software programs as a more efficient and accountable solution.
Energy companies need to find the best ARO Software to support their accounting and reporting functions, and the following are key factors to keep in mind when choosing and implementing the program best-suited for your company:
- The quantity and variety of assets your company needs to manage
- Your short-term and long-term business plans
- The various constraints on your finances, operations, and management team
- Other risks involved, like potential transactions and the environment
Companies face many difficult business decisions every day, but choosing an ARO Software should not be difficult. Your company can decide on the best asset requirement obligation system with confidence, if they keep the top decision factors in mind. Asset retirement obligation accounting is important, and the right ARO Software can relieve the stress, risks, and challenges involved.