Oil & Gas company

You need actual accounting software and a good tax accountant familiar with gas and oil production and depletion requirements.  Tax time for oil and gas well production and ownership is a nightmare.  QB is just not capable IMO

So many 1099's?  Curious as to why you do not consolidate well services with fewer vendors.

On the outside chance that he is issuing dividends or something like that, that is not a 1099 activity at all

You would use QB Premier, because Pro is entry level and does not manage Balance Sheet by Class.

Tracking as you ask is done by Vendor Name (the well owner party that is issued the 1099-Misc); by Class tracking (to track income and expense) and by Customer Name (to assign Expenses and to have invoices for revenue against which you can apply credits on hand).

This is the same process a Property Manager or Landlord firm uses.

QB Premier works fine for this. I recommend installing it as the Contractor Edition, to have access to the better reporting tools.

Darn Bear software has a great product. Its designed specifically for the industry. If your client is using QB already, it would be a great compliment because it works as sub-ledger and can manage and track all the run tickets, payments and sales, contracts and pricing. Its pretty rich and robust. Their website is https://darnbear.com

We own an oil and gas exploration/operating/production company and use SherWare as it interfaces with QuickBooks.

We are on the other side.  We receive Royalty checks that have taxes deducted.  I am familiar with QuickBooks and would like a system to track the gross amounts, the taxes deducted and the net deposit on each check from each O & G operator.  I have about 150 O&G Operators that I track.  

Can I use QB Pro, or is the Premier the way to go?

thank you in advance for your thoughts

Hello there, CFrench07.

You can use QB Premier to keep track of your gross amounts, tax deductions, and net deposit. It also helps you manage the Balance Sheet by Class as what qbteachmt shared. 

You'll also want to use the Class tracking feature. It lets you track account balances by department, business office or location, separate properties, or any other meaningful breakdown of your business. 

Feel free to use these articles that will get you started with your company file and set up the class tracking feature. 

Let me know if you have other questions by mentioning me in your reply. Take care!

I would like help getting started. 

I have about 150 oil producing companies that send my family checks several times a year. 

On the deposited check I need to track by

*)  first by oil company it is from

*) then the gross amount

*) then tax deductions

*) then other deductions

*) then specify amount of separate tax for Oklahoma and New Mexico

*) the deposited amount is the sum of the gross less these deductions. 

Would the Oil Producing Companies be the Customers?

How would I enter the individual checks from each company?

thanks for your help getting started 

Cara

@Catherine_B 

I just replied with more questions but forgot to include your name

Can you look for my recent reply to your help

Hey there again, @CFrench07. 

Thanks for reaching back out to the Community. Since my other colleague wasn't able to get on this thread, I'll go ahead and assist you. 

Based on the questions you asked, it's underlying accounting advice. In this case, I recommend consulting with your accountant to be sure. They'll be able to give you the best route for your business. If you don't have one, check out this link to find one near you. 

Let me know what they come up with. Afterward, we can talk about moving forward with some of the features in your account. Best wishes!

@qbteachmt 

Do I need Premier or Premier Plus.  They are different prices.  And I wanted to upgrade to one of these to handle the oil companies payments. 

I get payments or checks daily from about 150 oil producing companies.  I need to track by oil company the gross amount, tax deducted on each check and the net amount paid to me.  Is this possible to do without Premier or Premier Plus?  

So the person I spoke to today at Intuit told me that you could not upgrade from what I have to Premier.  Is that correct?

currently i have a subscription with QB Desktop Pro Plus

@Candice C  I did reach out to the accountants before reaching out to you and they are not helpful. 

I'm in the same boat as Cara!  Looking forward to learning from others on these issues.

Sean

I have the same need. General advice is good but I need step by step instruction on how to do the initial set up to track royalty income (Gross income, severance taxes, state taxes withheld, net income) and to give each LLC memner/partner his pro rata share of each of these. I would be willing to pay a fee to get help for the initial set up. I liked the question, "are the oil companies who pay us royalties set up as customers in QB?"

SherWare is WolfePak, right. Do they have a cloud-based module or are you using pieces of their antiquated accounting system? 

Hi @CFrench07,

Did you ever get an answer on this?  I have the same issues and questions.  I found similar questions with no answer here:

https://quickbooks.intuit.com/learn-support/en-us/taxes/proper-tax-accounting-for-non-operated-worki...

https://quickbooks.intuit.com/learn-support/en-us/do-more-with-quickbooks/how-to-use-quickbooks-to-a...

I'm basically in the same boat as you but with a smaller operation at the moment.

I would like to use QuickBooks online instead of the desktop software if that's possible. Not sure which package I need and how to get it all setup. Would Essentials or Plus do it? Advanced is really pricey.

If you ultimately found an accountant or consultant to help you get setup properly, a referral would be much appreciated.  Thanks!

Hello there, @tyki. I'll share some insights about QuickBooks versions.

I appreciate you joining this thread and sharing some details of your concern.

To start, I recommend reaching out to your accountant to provide advice on what accounting software you can use to track your business's gross amount, tax deductions, and net deposits. They can also guide you on how to handle this data in the program you choose. If you're not affiliated with one, you can use our Find an Accountant tool to look for one near your area. Just enter your City or Zip code in the search field and click Find a ProAdvisor. 

Then, to know the features available for each QBO version, you can read this article: Select the plan that's right for your small business. Once opened, select the Learn more button to expand the details. 

Once you've decided on the version of QBO you want, you can refer to this article to help you organize your company's dashboard: Get started and adjust settings after you sign up for QuickBooks Online.

I'm always here ready to lend a hand if you have other concerns managing your account, please don't hesitate to leave a reply below. Have a good one and stay safe. 

That literally answers zero of the questions.