Payroll Case Study – PATCO Petroleum

“PaySphere took a 10 hour process and turned it in to a simple one hour process per payroll.”

– Johnny Kilpatrick, Owner


Patco Machine and Fabrication Profile:

Patco Machine and Fab is a privately owned company providing Oilfield Services through Design, Fabrication, and Manufacturing, and is known for their high quality products, and reliable on time delivery. Patco has top quality in-house design capabilities. They also machine, fabricate, assemble and test a wide range of equipment, including Cable and Hose Reels, Roller Turndown Sheaves, Hydraulic Power Units, Remote Control Panels Drilling Systems, Mud Tank Suction Valves, Dump Valves, and Equalizer Valves. They also provide replacement parts for the obsolete Joe Stein/Houston System products.

Patco is an industry leader, and serves a worldwide customer base of over 30 major companies since 1973. Manufacturing and fabrication can either be based on design concepts developed from scratch with the customer or made to specification through existing engineering drawings.


For years, Patco handled payroll in house like many other small to mid-sized oil industry companies through their QuickBooks accounting system. But after a personnel change, the owner Johnny Kilpatrick, was not only managing the company, but was now also required to work late hours and weekends to complete payroll. There just weren’t enough hours in the day to handle everything. And, Johnny also found that rushing through these activities was leading to an increase in payroll mistakes, delayed orders of critical materials, delayed replies to customer inquiries. As a result, customer complaints were increasing, and the risk of losing customers was growing as well.

Johnny was at a critical juncture, he needed a better solution. His choice came down to do we hire a new employee and trust them to handle payroll, or do we find another solution?


As a result of their research and a strong recommendation from their new profit sharing and 401k company, Patco selected PaySphere’s payroll & timekeeping solutions. Patco’s 401k provider knew that the payroll had to be right the first time and every time.

The timekeeping and job costing elements of the PaySphere application have enabled Patco to save more than a full work day every week when processing payroll. They now have more accurate timekeeping, and detailed reports for hours spent on a job. What’s more, Patco didn’t have to hire an additional person to handle payroll. As a result, Patco is now saving more than 90% of what they used to spend with in house payroll. With these cost savings and improved accuracy, Patco is now also able to confidently offer a 401k plan to their employees.

”Thanks to PaySphere, we now look and feel like a much bigger company to both our employees and customers. Without the constant distraction of payroll problems, our customer orders are on time, and right the first time, every time. And our employees are now getting better payroll and benefits like a 401k plan.“

With PaySphere, you’ll reduce costs, increase productivity, and gain insight into your business that will allow you to make informed, strategic decisions.

Contact us today to find out how PaySphere can change the life of your business.

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