The oil and gas industry is built on complexity, especially within the midstream sector. From transporting hydrocarbons to managing storage, processing, and distribution, midstream operations are a crucial link between upstream production and downstream refinement.
Yet, the accounting requirements that underpin this sector often outstrip the capabilities of generic financial systems.
Midstream accounting software isn’t just a convenience; it’s a necessity. Operators need a solution designed specifically for the oil and gas industry, one that understands the nuances of midstream activity and integrates seamlessly with other systems in the value chain.
Whether you're managing gas balancing, division of interest (DOI), or regulatory reporting, the right oil and gas integrated accounting platform can be a game-changer for efficiency and accuracy.
In this blog, we’ll explore what to look for in midstream oil and gas accounting software and why specialized solutions are essential to managing this sector’s unique challenges.
#Why Generic Accounting Software Falls Short
Most general-purpose accounting platforms were built with simplicity in mind. They’re great for tracking expenses, generating invoices, and reconciling bank statements, but they weren’t designed to handle the complexity of midstream accounting.
Midstream operations require:
Management of complex contracts and multiple stakeholders
Handling physical product flow (gas, oil, NGLs) across various assets
Calculation and reconciliation of imbalances
Intricate revenue distribution across owners and partners
Trying to bend a generic ERP or off-the-shelf accounting software to meet these needs often leads to inefficient workarounds, error-prone spreadsheets, and significant compliance risk.
This is where oil and gas accounting software purpose-built for the midstream sector steps in.
#Key Features to Look For in Midstream Accounting Software
When evaluating a platform, ensure it offers core functionality that addresses the day-to-day and strategic challenges of midstream oil and gas accounting. Let’s take a closer look:
Gas Balancing
Gas balancing is a critical part of midstream accounting. Discrepancies in volume due to metering issues, line loss, or operational adjustments must be tracked and reconciled efficiently.
An ideal oil and gas accounting software will:
Track receipts and deliveries across pipeline systems
Automate imbalance calculations
Maintain current and historical ownership positions
Provide reporting tools to ensure transparency with shippers and owners
Without a system that can automate gas balancing, companies risk financial leakage and partner disputes.
Division of Interest (DOI)
DOI management is central to accurately allocating revenues and expenses across various stakeholders.
Midstream operations often involve numerous working interest owners, each with a defined share in the infrastructure or throughput. An integrated oil and gas back office software solution must:
Handle complex DOI setups across assets
Automatically apply DOI percentages to transactions
Update ownership changes without manual rework
Robust DOI capabilities ensure accurate revenue distribution and compliance with joint operating agreements.
Revenue Distribution
Revenue distribution in midstream is a multi-layered process. It’s not just about who gets paid; it’s about when, how much, and according to what terms.
A capable midstream accounting software should:
Automate gross-to-net calculations
Factor in tariffs, transportation fees, and taxes
Allow for custom distribution logic based on contracts
Generate owner statements and payment remittances automatically
Automated revenue distribution eliminates the need for manual spreadsheets and ensures that all stakeholders are paid accurately and on time.
Audit Trails and Internal Controls
Given the regulatory scrutiny and financial complexity of the industry, strong internal controls and audit trails are non-negotiable.
Midstream accounting software should:
Track all changes to financial data with timestamps and user IDs
Provide audit-ready reports
Restrict user access based on roles and responsibilities
Ensure data integrity across modules
This not only supports internal governance but also facilitates easier audits by external regulators and partners.
#Scalability and Cloud Accessibility
As companies grow, expand into new basins, or acquire assets, their accounting systems must scale accordingly. A modern oil & gas accounting software platform should be built with scalability in mind.
Look for:
Modular architecture – so you can add functionality as needed (e.g., additional assets, business units, or countries)
Cloud accessibility – enabling users to access the system from any location, which is critical for remote teams and field offices
Elastic performance – to handle growing data volumes without slowing down
Cloud-based systems also reduce IT overhead and allow for more frequent updates and tighter security.
#Compliance and Regulatory Reporting
The midstream segment is governed by a complex web of regulations, ranging from FERC and IRS rules to state-level reporting requirements.
Comprehensive midstream oil and gas accounting software should support:
Automated regulatory filings (e.g., FERC Form 2, state production reports)
Built-in validation checks to prevent reporting errors
Audit-ready documentation for all submitted reports
Integration with external tax and compliance systems
Keeping up with compliance is not only about avoiding penalties; it’s also a matter of maintaining investor confidence and stakeholder trust.
#Data Visibility and Decision Support
Modern midstream businesses require timely, accurate, and actionable insights to drive strategic decisions.
Advanced reporting tools, dashboards, and business intelligence features allow teams to:
Monitor profitability by asset or contract
Track operational KPIs (throughput, downtime, imbalance)
Forecast cash flows and expenses
Identify anomalies before they become costly issues
An effective oil and gas back office software suite turns raw data into real intelligence, empowering CFOs, controllers, and operations teams alike.
#Choosing the Right Partner
It’s not just about software; it’s about the company behind it. Look for a provider with:
Deep industry experience in oil and gas, especially midstream operations
A strong implementation and support team with domain knowledge
A track record of innovation and customer success
That’s why many midstream operators choose TIES – The Integrated Energy System from Trilogy Energy Solutions. Built specifically for the complexities of midstream accounting, TIES goes beyond basic bookkeeping to handle allocations, plant processing, scheduling, and contract management in a single, integrated platform. Backed by Trilogy’s decades of experience in oil and gas, TIES delivers the right mix of innovation, reliability, and hands-on support. For companies ready to move away from legacy systems, TIES isn’t just an option—it’s the right partner for long-term success.
#Conclusion
Midstream oil and gas companies operate in one of the most dynamic and demanding environments in the energy value chain. Your midstream accounting software should rise to the challenge, not hold you back.
Whether you're balancing gas, managing complex ownership interests, or navigating strict regulatory compliance, choosing the right midstream accounting software is vital to running a transparent, efficient, and profitable business.
The best solutions are purpose-built, cloud-ready, and deeply integrated; designed not only to meet today’s needs but to scale with tomorrow’s ambitions.
If your current accounting tools are forcing you to work harder instead of smarter, it may be time to upgrade to an oil and gas integrated accounting platform that truly understands midstream complexity.
