Automated invoice imports and validation eliminate double entry in openinvoice, saving time and reducing errors.
Headquartered in Houston, Tally Energy Services provides technical products and services to oil and gas operators. The company focuses on the economics of shale development by providing operators with pragmatic, fit-for-purpose solutions that effectively increase recovery while lowering operational costs. Its solutions are based on a deep appreciation for subsurface complexity and operators’ financial objectives, combined with strong execution capabilities.
A private company with strong financial backing, Tally Energy Services seeks to grow innovative businesses by focusing on the areas that cost-effectively improve the success of a well, including directional drilling, completions and artificial lift to optimize well placement, treatments and production. The service provider actively supports a large number of operating companies daily across major North American basins.
Invoice volume in line with its buy and build strategy, Tally Energy Services experienced rapid growth over the course of just a few years. AR grew in lock step with acquisitions of drilling, completions and production service providers, including Premier Directional Drilling, Gearcon, DynaView, ReStream Solutions and Epic Lift Systems.
Accounting staff diligently struggled to keep pace with the increasing volume and variety of invoices being submitted to Enverus OpenInvoice. AR invoices are manually keyed into OpenInvoice, using a double entry process to ensure data integrity before routing for approval. Given the high AR volume, a significant amount of time was spent each month processing invoices. Adding complexity, a surging volume of customer invoices needed to be submitted by e-mail, with some operators requiring hard copy via postal service.
Tally Energy Services wanted to contain G&A costs across its growing operations, a strategy that also extended into the accounting department. With the velocity of AR invoices accelerating, the service provider’s accounting team was overwhelmed by monthly processing demand.
For Tally Energy Services, relying solely on manual and repetitive AR workflows limited the company’s ability to scale with the resources it already had. Double entry of invoices and approval processes could only be optimized so far with submission processes by e-mail and postal service constraining the turnaround time from invoice to payment.
To accelerate cash flow, the service provider’s accounting team wanted to leverage automation to reduce manual and repetitive AR tasks, eliminate the need for double entry, and electronically deliver invoices directly to its operator customers. Importantly, by adopting technology to automate processing of more than 1,000 monthly invoices, Tally Energy Services hoped to reduce its DSO to record levels within the organization.
SupplierLink seamlessly imports invoices into OpenInvoice from a supplier’s accounting system, eliminating double entry and accelerating operator payments.
The Tally Energy Services accounting team was already considering solutions from three other providers. The service provider selected SupplierLink over the competition because it is an easy and rapidly deployable solution that did not require a heavy learning curve and could be easily integrated with its ERP.
Because the company was already submitting invoices to Openinvoice, the implementation of SupplierLink at Tally Energy Services was fast and simple. It took less than two days for Enverus to activate SupplierLink and for the service provider’s accounting team to complete the required account mapping.
Starting with its highest volume customers first, the Tally Energy Services accounting team rapidly onboarded accounts receivable. The service provider’s team coordinated onboarding tasks with each operator to ensure SupplierLink was best tailored to their internal processes, requiring approximately one week to complete.
Leveraging SupplierLink, Tally Energy Services increased business agility, reduced costs and improved cash flow. Automated invoice import and validation has saved the service provider at least 40 hours per week by eliminating the double entry process into OpenInvoice. With an average annual AR load of 25,000 invoices, Tally Energy Services would need to hire at least one full time resource to manually key in customer invoices without SupplierLink, creating measurable results.
SupplierLink also enables the service provider to gain deeper visibility into its field tickets, invoice approvals and payment status. As a result, Tally Energy Services has significantly decreased DSO.
Today, Tally Energy Services exports 58% of its invoice submissions to Openinvoice with SupplierLink, more than 1,000 per month. Accounting staff at the service provider report that many customers almost immediately began paying invoices faster that they realized significant ROI within 90 days. Tally Energy Services sees SupplierLink as a strategic technology that enables it to achieve its growth objectives while minimizing G&A costs after two years of continuous use.
Get Energy Transition Research updates straight to your inbox by filling out the form below.