A new accounting software solution aimed at the oil and gas industry will help companies with tax filing and project evaluations.
PowerPlan is a provider of accounting, tax and capital budgeting enterprise software. As master limited partnerships (MLPs) have become a popular business model for oil and gas companies, the software company’s latest version of its tax solution includes a module built specifically for MLPs.
PowerPlan’s MLP module allows for greater accuracy and availability of data for stakeholders, which improves K-1 filing processes and provides financial visibility and reporting for general partners, auditors and unit holders. Today, MLPs are facing compressed timelines between the annual accounting close and the issuance of K-1 forms. Historically, the K-1 process is done manually, labor-intensive and error prone. With the PowerPlan MLP module, integration between accounting systems, tax systems and K-1 filing preparers is automated, improving both speed and accuracy.
“PowerPlan’s tax solution is a great bridge for fixed asset data to flow from the accounting to tax departments. The new MLP module will create a more streamlined data flow from the tax department to the MLP K-1 processor,” said Khrissy Griffin, senior tax manager at Exterran. “In our experience, PowerPlan consistently helps us improve our fixed asset processing and reporting of critical business transactions.”
PowerPlan version 10.4.2 includes new features and enhancements that make it easier to manage and run reports. Specific enhancements for version 10.4.2 include the following:
- A lower level of accounting detail that enables the calculation of forecasted depreciation and forecasted tax depreciation that gives financial planning, executive management and regulatory officials greater visibility to analyze the current situation and future financial standing. Changes to the project can be evaluated on their impact to Allowance for Funds Used During Construction (AFUDC), Cost Performance Index (CPI), Closings, Depreciation and Tax.
- Project-level comparison reporting providing companies the flexibility to create project revisions and quickly see the financial impacts of those changes.
- New features and options for calculating ARO processing, project accounting and lessee accounting modules with specific improvements to month-end depreciation calculations.
“We are committed to the growing oil and gas industry and meeting and supporting their unique needs,” said Russell Groves, vice president of strategy at PowerPlan. “In addition to our new MLP solution, with the addition of several oil and gas experts to our team, we are focused on strengthening our expertise in this area and creating value for our customers.”