Expense Management

Properly track and categorize all expenses related to your oil & gas investments for accurate financial reporting and tax preparation.

Expense Categories

Depletion

• Percentage Depletion: Calculate statutory depletion allowances
• Cost Depletion: Track basis reduction for cost depletion
• Depletion Elections: Manage annual depletion method elections

Operating Expenses

• Lease Operating Expenses (LOE): Direct costs of production
• Maintenance & Repairs: Well and equipment maintenance costs
• Insurance: Property and liability insurance premiums
• Utilities: Electricity, water, and other utility costs

Professional Services

• Legal Fees: Attorney fees for leases, title work, and disputes
• Accounting Fees: CPA fees for tax preparation and financial services
• Consulting: Geological, engineering, and other consulting services
• Management Fees: Third-party management and administrative fees

Administrative Expenses

• Office Expenses: Home office and administrative costs
• Travel: Travel related to property management and inspections
• Communications: Phone, internet, and communication costs
• Subscriptions: Industry publications and software subscriptions

Recording Expenses

Manual Entry

1. Navigate to Expenses section
2. Click "Add Expense"
3. Select appropriate category
4. Enter amount, date, and description
5. Attach receipts or supporting documentation

Document Integration

• Link expenses to uploaded invoices and receipts
• Automatic expense recognition from certain document types
• Bulk import from accounting software or spreadsheets

Expense Allocation

Property-Level Tracking

• Allocate expenses to specific wells or properties
• Track property-level profitability
• Generate property-specific reports

Joint Venture Allocation

• Split expenses among working interest partners
• Track reimbursable vs non-reimbursable expenses
• Generate partner billing statements

Tax Considerations

Deductible Expenses

• Current year deductible expenses
• Capitalized vs expensed items
• Passive activity loss limitations

Documentation Requirements

• Maintain receipts and supporting documentation
• Business purpose documentation
• Mileage logs for travel expenses

Reporting Features

Expense Reports

• Monthly and annual expense summaries
• Category-wise expense analysis
• Trend analysis and budgeting
• Tax-ready expense reports

Export Options

• Export to tax preparation software
• Excel and CSV formats
• Integration with accounting systems
• Schedule E preparation

Best Practices

• Timely Recording: Enter expenses promptly to avoid missed deductions
• Proper Documentation: Keep all receipts and supporting documents
• Consistent Categorization: Use the same categories consistently
• Regular Review: Review expense categories and allocations monthly
• Professional Guidance: Consult with tax professionals for complex situations

Note: Tax laws regarding oil & gas expenses can be complex. Consider consulting with a qualified tax professional.