Course 1 - Icebreaker/Theme

Hangátirat Automatikusan generált

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  Have you ever heard of a snowball effect?

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  Metaphorically, a snowball effect is a process that starts from

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  an initial state of small significance and builds upon itself,

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  becoming larger and perhaps potentially disastrous if not managed properly.

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  Severance taxes like a little snowball of the top of

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  a mountain that rolls down, becoming a giant snowball at

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  the bottom of the mountain, if not appropriately managed.

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  Everything that happens from engineering and fieldwork to production, accounting

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  division orders, marketing accounts payable and course revenue all rolls

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  into severance tax for those in charge of severance tax.

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  Knowing all the parts that need to be managed play

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  a critical role in ensuring your company is not paying

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  any more than what is due.

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  They could look at a scenario that could easily happen

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  in any oil and gas.

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  Accounting department, though, is a new severance tax accountant and

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  his company in charge of the many severance tax responsibilities

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  go received a very brief training, and no best practices

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  or checks and balances have been put in place in

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  his new role.

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  When calculating the severance tax due for his company's return,

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  Joe did not know the importance of working with various

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  departments to ensure he had all the necessary information regarding

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  exemptions and deductions before filing his company severance tax return.

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  As a result, Joe missed several wells that had qualified

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  for reduced tax rate.

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  This oversight resulted in a severance tax payment of $1

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  million to the state when the actual liability should have

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  Onley been $100,000.

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  That's $900,000 that could have stayed in the company's possession

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  instead of sending it to the state.

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  So what do we get from this scenario?

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  We can all agree that keeping $900,000 in the pockets

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  of the company at hand is imperative.

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  Think about the impact on a company if they never

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  go back to reconcile their severance tax and do not

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  know they had overpaid by, in this case, $900,000.

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  Having the foundational elements of severance tax in place is

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  critical to ensuring your company will maximize their severance tax

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  exemptions. Everything that happens from engineering and fieldwork to production,

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  accounting division orders, marketing accounts payable and course revenue all

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  rolls into severance tax like a snowball effect.

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  The reality is there are many facets to properly managing

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  your company severance tax, knowing oil and gas severance tax

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  and the department's needed to manage and report it will

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  help you feel confident that you are maximizing the money

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  you protect and keep in your company's hands.