As an oil & gas operator, financial success is defined by both revenue generation as well as your ability to anticipate daily operating expenses and minimize costs. However, paper-based accounts payable processes, vendor invoicing complexity, time-consuming invoice coding, and manual approval workflows create uncertainty and poor AP visibility. All too often, the result is an impending pipeline of expenses that misses budget targets and hits your bottom line.
From drilling and completions to operations and maintenance, your organization incurs daily capital and operating expenses. The result is a flood of inbound invoices for a myriad of services and products. And the cumulative price tag changes daily, leaving operators to estimate impending expenses based on out-of-date or incomplete AP data. This poses multiple financial risks, including a significant budget shortfall. Equally important, lower than expected expenses compared to budgeted cash flow can signal inefficient deployment of capital.
Gaining a clear and current view of expenses is critical to ensure budget accuracy. Ironically, the traditional approach of a dedicated AP processing department has become a major G&A cost center for most oil & gas operators. What’s more, accounting data entry, expense approval, and AP reporting remain largely paper-based and manual, injecting processing delays, human error and hidden costs.
By bringing digital transformation, coding standards, and automated workflows to accounts payable, the Origo AP automation system consistently aligns budgets with the actual expenses operators incur, reducing G&A costs and budgeting risks. AP automation can also rein in spending by empowering individuals, management, and vendors with budget oversight and accountability. For those who do it well, AP automation sets them apart from others in a crowded sea of competitors.
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