The way you record accounting transactions for other small business is not different from QuickBooks for Oil and Gas Business accounting.
From sales receipts, payment, bank deposits and generating custom financial report, QuickBooks can easily help you monitor your oil and gas business so that you can make informed decisions about your petroleum stocks.
The only source of concern for you as an oil and gas business operator is how to track your gas, fuel, kerosene and diesel sales transactions on a daily basis.
Here are guidelines to setting up QuickBooks for oil and gas business.
Firstly, you need to ascertain the quantity and value of petroleum stocks available as at when you want to set up your accounting system which will be your opening balance.
This screenshot shows you how to set up diesel stock with quantity on hand in QuickBooks.
To set your petroleum stocks in Quickbooks, Click here to learn how to add new item in QuickBooks.
Item Name: Enter your preferred stock name
Unit of Measure: Use this field to describe how you measure quantity sold and bought.
Cost: Enter the cost a unit of measure
Sales Price: Enter the selling price per unit of measure
Purchase VAT Code: Select a VAT code for tracking item purchased.
Sales VAT Code: Select a VAT code for tracking item sales
COGS Account: Select an account to track the cost of your inventories.
Income Account: Select an account to track sales income from your inventories.
Asset Account: Select an account to track the value of your inventories.
Reorder Point: Enter the minimum quantity before you make a new purchase.
On Hand: Enter the quantity of stocks on hand as at when you set up your business on QuickBooks.
Looking at the way petrol station sell their products everyday – my personal advice is that you should have a system of tracking quantity sold per day and use the tutorial on how to create sales receipt in QuickBooks to record daily sales since you may not install your system at nozzle point.
Petroleum Stock Valuation
See my tutorial on QuickBooks inventory tracking and stock report
For more information on how QuickBooks can work for your oil and gas business, contact us.