From the outside looking in, engineers are often seen as the lifeblood of any oil and gas enterprise. While they play an undeniably crucial role in this kind of business, they’re supported by an equally important administrative office. The project secretaries and administrative assistants who ensure everyone has a workstation and the tools they need to execute their roles are just as vital to an oil and gas company’s success.
It goes without saying that there is a cost attached to having this administrative team in place. But the salaries of administrative staff are not the only necessary administrative expenses to consider. You also have to factor in the cost of stationery, computer hardware and software, ISP fees, rent, and travel expenses. Managing these will help you retain a better margin and sustainable operations. You will also be better positioned to finance the expansion of your company when the opportunity arises.
If you own or manage an oil or gas company and are looking for ways to cut down on administrative expenses, consider the following tactics:
- Outsource for Administrative Help
You can consider bringing in administrative personnel from a company specializing in the sourcing of such workers, such as EAG 1Source. This will free you from the cost of catering for their medical expenses and social security. You also won’t have to foot subscriptions for software for back-office tasks which administrative staff handle, including keeping track of cash inflows and outflows.
In the oil and gas business, you particularly need an outsourcing firm with the expertise to take care of your upstream and downstream accounting. The accounting platform they provide should enable you to keep tabs on such vitals as your cash management, authorization of expenditure management, general ledger, fixed assets, revenue distribution, and inventory management.
Your chosen oil and gas administrative services provider should also have the experience required to fully take care of financial reporting. They should help you generate monthly and quarterly financial reports that will help your company’s stakeholders keep a finger on the firm’s financial health. In addition to this, the platform they provide should produce key data relating to land administration. This includes precise geographic information system (GIS) mapping and acreage reporting.
- Hire Remote Workers
Many firms’ interest in remote working has piqued due to the COVID-19 pandemic. But savvy oil and gas firms had realized the benefits of bringing in workers who can dispatch their duties remotely years before social distancing was a thing. Your administrative staff don’t all have to be in the office; they can do things like filing, arranging transport and accommodations, and ordering equipment from the comfort of their homes.
Hiring remote workers will help you eliminate expenses such as transport allowances or mileage from these employees’ wage packages. Also, some employees are willing to take a slightly lower wage if they don’t have to put up with the daily commute’s bustle and expense.
In addition to the wage savings, you can also make savings on office space rent. Fewer employees physically present in the office means you can rent out less office space. Your monthly energy, water, and internet bills will be lower.
- Maintain Office Technology
When it comes to damaged tech hardware, prevention is better and cheaper than repair. Maintaining your office equipment will ensure it serves you longer and won’t cost you a fortune in repairs. You can have an outsourced team to handle this for you so that you keep your wage bill low while getting your technology checked by experts specialized in equipment maintenance. Having an expert regularly ascertain the functionality of your desktops, laptops, printers, and other equipment will potentially save you thousands of dollars in premature replacements.
- Use Airline Miles for Travel
Keeping a lid on travel expenses can help you improve your margins significantly. You can do this by cutting out all unnecessary travel. Where possible, let virtual meetings replace physical ones. Another way you can reduce travel and accommodation costs is to cash in on airline miles rewards programs. Depending on which airline it is, you can use the frequent flyer points to pay for hotel accommodations or get cut-price tickets.
- Use Less Paper
You can cut the amount of paper you use by, first of all, urging your staff not to print out emails or any other documents if they don’t have to. Send and file your invoices, receipts, and other documents relating to sales electronically to cut costs while simplifying your administration.
Free Your Business from Unnecessary Expenses
Bringing down your administrative costs can be all that’s needed for your oil and gas firm to break even. Taming your executive wage bill and reining in travel expenses can free up funds for the marketing push required to take your firm to the next level. But as willing as you may be to make the necessary adjustments, you may not be able to implement them fully without a little help. Outsourcing may be the best way you can maximize your administrative cost reduction potential.