How accountant use drone technology depends on the kind of job. Drone technology is unmanned aerial vehicles (UAVs) that can fly remotely (Kanellakis & Nikolakopoulos, 2017). According to Laricchia (2022), the global market for drone is predicted to increase from $26.3 billion in 2021 to $41.3 billion by 2026. In 2020, the US and the UK for instance used drones to deliver drugs, material during covid-19 pandemic.
Drone technology can be useful in the war zones, intelligence gathering. Also, it potential to bring new ways of doing business to both big and small accounting and auditing firms. The technology can now be deployedinto civilian roles, such as accounting and auditing profession, search and rescue. Also, in traffic monitoring, videography, surveillance, delivery services, weather monitoring, drone-based photography, firefighting, agriculture, personal use (Laricchia, 2022).
The accounting and auditing profession has experienced radical changes in carrying out their responsibility. This could be due to the current technological advancements like drone technology, the Artificial Intelligence (AI), blockchain technologies, Internet of Things, big data.
In the accounting profession, for instance, any accounting or audit firms working with clients that own big mineral deposits or mining facilities or inventory can now make use of drones to fly over the area to snap thousands of pictures and measurements which can aid accurate assessments of holdings (Ovaska-few, 2017). The old practice of climbing to measure a coal physically is over as with just two-meter GPS tracking pole, that can be done within a stipulated time and obtain estimated volume.
Where Drone Technology has be deployed
In addition, the permission to use drone are nowadays required for all types of aerial drones. In Germany for instance, there are limited to zones outside nature protected areas and of high urban density or conglomerations of people. From December 31, 2020, new EU regulations will apply and replace national regulations for each country.
The Federal Aviation Administration’s issued new rules in 2016 on the usage of drone that is estimates is a $127 billion global market. It means a new rule has been set for United States to use drone technology for their operation (Ovaska-Few, 2017).
In Poland, the initiative of Drone Powered Solutions was birthed where a law was passed in 2013 to freely commercialized the operation of the machines. The accounting, audit, and consulting firm started a drone-focused division after the country passed laws in 2013 friendly (Ovaska-Few, 2017.)
In Australia, Rio Tinto who has its facility in a remote area planned in 2016 to start using drone technology to monitor mine sites including the staff.
Growing demand for drone used in the workplace and in others area.
It was recorded that PwC completed its first stock count audit using drone technology. With the assistance of a drone, they were able to capture images at a coal reserve in South Wales and used them to measure the volume of the coal, based on the measurement of volume.
Also, Amazon and Google are already testing ways to deliver packages with drones. Facebook has started using drones to provide internet connections in remote locations.
Furthermore, Ford Motor Company filed a patent to start the use of drones for dead batteries. The patent was filed on 3rd Feb 2017 and circulated on March 8th, 2022, with assigned serial number 11271420.
Benefit of Drone Technology to the Accounting and Audit profession
Some range of benefits derived from using the drone:
Time-efficiency and effectiveness: Drone devices help to improve and increase effectiveness and efficiency in the accounting and auditing profession.
Accuracy: Produce accurate data that can be relevant for future forecast and planning. Using a drone to collect insight into the condition of assets is faster, cheaper, safer and more accurate than traditional methods.
Save Cost: Drones may save money for accounting clients, who can use them for stocktakes, mapping, safety monitoring and to inspect bridges and building.
Productivity: It can enhance productivity.
Reduce the risk of injury: For instance, the benefit in health and safety as the need for someone to climb over the coal pile are removed.
Speed: Helps speed up some business processes.
Monitoring strategies. Help monitor staff, operation and some dangerous zone. For instance, drones can assist the firm or staff to take account area difficult to reach.
Storage of long-term data: Moreover, drone methods allow for storage of long-term data which can be useful account physical factors (like weather, light conditions and geomorphology of the beach) for more spatial-temporal analysis (Kataoka et al.,2018).
However, note that this drone technology can’t work on its own. The technology produces data that needs to be interpreted and translated into meaningful information for a business decision.
As accountants or auditors, it requires that they strive to keep abreast of how the new technologies works and how they can be used to enhance effectiveness, efficiency and then develop the skills needed to interpret and present the data so that they can continue to add value to their businesses and employers.
The essay examined the relevant of drone technology to the accounting and auditing profession. However, commercial drones are the way of the future, and it’s going to make a big difference for any firm (Ovaska-Few, 2017). It is good to know how accountant use drone technology has come to stay with us. Moreover, the earlier we change our knowledge of the technology to our advantage the better. Furthermore, accountants and auditor need to accept this new technology with two hands opened. They should see how this new technology can enhance their job but not to see it as a threat.
The implications are stated below:
Be part of the at least 95% that will accept this new technology if they must prepare for the future.
Develop a new skill that is all-encompassing for them to be relevant at all times and drive the development of the accounting profession.
Become a consultant in the field to remain relevant and being in change of the world where we live by data.
Become a strategic thinker
Apply their professional judgement whenever is necessary.
Established Drone-focused division or department should be set up to handle all matter related to drone and lastly
Check the impact of drones on client’s business operations.
Business and Personal Growth are treated together for the purpose of this article and also because of the keen interest of the author. Business growth is when a business reaches the level of expansion and pursues additional options to earn more profit. It is achievable when business owners and environmental factors determine what happens to a firm’s success.
In addition, businesses experience growth when there is no agent and the principal issues. The industry is expected to grow when its customer base is expanded, revenue increases due to several business models. Also, strategies employed or when different products are produced after researching the market to know the need of consumers.
On the other hand, personal growth is a process of both understanding and forcing yourself to attain a goal potential. furthermore, it can mean new habits, hobbies, skills, and strategies to achieve your goals. It can also mean continually examining who you are becoming and your plans to attain that level.
Indeed, growth is expected to go beyond increasing market share. It covers what has been done in social activities. In other words, it means that the benefits of a particular surviving firm depend on how a wider stakeholder’s services are appreciated. Alos, how such firms can increase their social welfare (Ward, 2020).
Several studies deal with how business is created, made and managed (Santamaria, 2018; Birley & Westhead 1993; Rosa 1998; Iacobucci & Rosa 2010), but this book has identified three pillars of business and personal growth called F-Ojes Model
Component of this model tested
The component of this business and personal model has been tested and applied in business and personal growth knowingly or unknowingly by some successful businessmen and women, which has helped them translate their business into success and expansion.
A good example is Amancio Ortega Gaona, the Spanish billionaire who established Inditex Fashion Group and Zara’s chain store for his business and personal growth. He applied this business concept to invest billions of dollars’ dividends in real estate and back to the business for growth and expansion. Today, he and his company are doing well. He was at a time the wealthiest man in Spain, and Zara has branches and offices all across the world.
The lesson from his leadership style of Ortega is that he learns to listen to both the employees and clients as part of his business network. He was confident not to outsource the manufacturing and pricing of their merchandise to any network that did not have his business at heart.
As he listened to employees’ suggestions, he was able to design unique brands. It has helped him integrate their opinions and views into the organization’s success. A network can do this for someone who receives vital information from the immediate environment.
Several scholars have investigated different models for business growth. Still, this book looked at the model by Churchill and Lewis (1987), which is relevant to small and growing businesses as stated in the five stages of company development. According to Lewis and his friend.
The stages are:
This is related to garnering customers and delivering product or service.
This means companies have demonstrated that they are workable business entities, with a big question as to whether there is sufficient money for the firm to break even and remain in business.
This has to do with the decision challenges encountered by owners of the business as to whether to exploit the firm’s achievement and expand or keep the firm stable and profitable, providing a base for alternative owner activities.
It means how to make the firm proliferate and finance its growth
Which comprises the firm’s size advantages, financial resources, and managerial talent, will be a formidable force in the market if they retain its entrepreneurial spirit
Lewis expressed that the model could assist owners during the start-up period and the need for delegation and changes in their managerial roles when companies become larger and more complex and also aids accountants and consultants in diagnosing problems and matching solutions to smaller enterprises.
A business or individual that desires business and personal grow should ensure they apply the three pillars that make men great . It can help them increase their customer base, increase revenue, produce more to sell to the target market, and expand their business to the international arena.
In line with Premaratne, the success of business enterprises and individuals depends on personal networks (Premaratne, 2001). Still, this book extended his work by adding identity and knowledge due to the era of information technology and knowledge economy that we are in right now.
The author identified three pillars called F-Ojes Model in this book, where the first pillar represents IDENTITY, the second pillar, K, represents KNOWLEDGE, and the last pillar, N, represents NETWORK.
These pillars listed by the author are likened to self-determination assumptions, which have to do with what people need to feel, as stated below before the achievement of psychological growth:
This is when people are required to feel of being in control of their behaviors and goals
This is where people are required to gain mastery of tasks and learn diverse skills. When people have the feeling that they have the skills needed for success, they are more expected to take actions that will help them attain their goals
This is where people are related to other people across the network. The moment people experience a sense of belonging and attachment to other people, you can see self-determination to get things done.
Today, one cannot do without any of these technology like IoT, Cloud computing, Drone technology, Artificial Intelligent. If all these are added to the application of this F-Ojes Model, it will surely position businesses and individuals well.
Birley, S. and Westhead, P. (1993). A comparison of new businesses established by “novice” and “habitual” founders in Great Britain. International Small Business Journal, 12, 38-60.
Iacobucci, D. and Rosa, P. (2010). The Growth of business groups by habitual entrepreneurs: The Role of Entrepreneurial Teams. Entrepreneurship Theory & Practice, 34,351-373.
Premaratne, S.P.,(2001). Networks, resources, and small business growth: The experience in Sri Lanka. Journal of small business management, 39(4), pp.363-371.
Rosa, P. (1998) Entrepreneurial processes of business cluster formation and growth by “habitual” entrepreneurs. Entrepreneurship Theory and Practice, 22, 43–62.
Santamaria, S. (2018). Company growth or business growth? Business group formation as an entrepreneurial growth strategy. https://business.uc3m.es /seminarios/ filesem1542013693.pdf (Accessed 2nd October 2022).
Ward, A.M (2020). Finance: Theory and Practice, Chartered Accountants Ireland
Top 35 Source Documents in Accounting are collated by the author to help accountant in their job. Also, it is a document that serves as the proof or source of the transaction.
Top 35 Source Documents in Accounting stated below:
These are sent by the buyer to the vendor. They will then outline exactly what the order should contain and when it should arrive.
2. Sales Invoice
This is made for account receivables. When an item is sold the seller will issue a document providing all the details of the sale.
3. Purchase Invoice
This is made for account payables. The seller will enter this as sales invoice while the buyer will enter it as purchase invoice.
4. Debit Note
This is evidence of reduction in purchases and can be useful to support purchases return journal. In customer books, debit note will reduce how much they owe to the seller.
5. Credit Note
This is evidence of reduced sales and support sales return journal. In supplier’s books, credit note reduces the amount owed by the customer.
This is a special bank note that represents the cash paid by the customer.
7. Revenue receipt
This is used to record the receipt of cash which is a proof that the payment is made.
8. Cash register receipts
This is a business paper that listed the money coming in from customers.
9. Bank or Credit advice
They are debit or credit bank advice. Bank credit advice is bank documents informing the business of an increase made in the business’s bank account. Bank debit advice is opposite of bank credit advice.
10. Deposit slips
When one receives cheque or cash from customer, the seller will take it to the bank and present.
11. ATM cards
The production of receipt from ATM machine can serve as evidence that money has been taken from the bank account.
12. Bank statements
This is a summary of financial transactions that occurred at a certain institution during a specific time period. For example, a typical bank statement may show your deposits and withdrawals for a certain month.
13. Bill of exchange
This is an unconditional order in writing, addressed by one person to another, signed by the person giving it. It also require the person to whom it is addressed to pay on demand.
14. Payroll report
This can also refer to the list of employees of a business and the amount of compensation due to each of them.
15. Cancelled Cheque
This is a check that has been paid or cleared by the bank
16. Cheque Stubs
This is the check kept by the payee with information such as the check number, date, and amount.
17. Employee Timecard
This is a method for recording and tracking the amount of an employee’s time spent on each job
18. Board minutes or minutes of meetings
The secretary of the board usually takes minutes during meetings.
19. Goods Dispatched Note (GDN)
This a document of the company that lists the goods sent out to a customer. The company will keep one record of goods dispatched notes.
20. Goods Issues Note (GIN)
This is a physical record of the movement of goods or materials from the warehouse or store to production department.
21. Stock take Records
This is also called stock counting. It is when you manually check and record all the inventory that your business currently has on hand
22. Stock Record (i.e., Bin card)
A Bin Card is a card indicating quantitative records of the receipts, issues and balances etc.
23. Goods Received Note (GRN)
This is source document that shows the goods that a business has received from a supplier.
24. Remittance advice
This source document can confirm the amount paid and shows discrepancies that can easily be investigated.
25. Insurance Endorsement Certificates
This is where one party will add the other party as an “additional insured” on their commercial liability insurance policy.
26. Point of Sales Summaries
This can be used to record a number of sales at a cash register.
Memo is a written document businesses use to communicate an announcement, policy changes, price increases or notification to take an action, such as attend a meeting, or change a current production procedure.
28. Computer-generated Receipts
This is the kind of receipts is to be generated by the computer.
29. Lease Agreement or Rental Agreement
Lease contracts are formal documents that identify the lessor, lessee, what’s being leased, whether it’s an asset or a property.
30. Sales Tax Returns
This is the taxpayer’s document of declaration. This will enable the taxpayer to furnish the transaction details during a tax period and deposits his Sales Tax liability.
31. Cash Register Tapes
This allowed one to keep a record of all customer transactions and/or provide them with a receipt.
32. Adjustment Notes
This are issued to customers due to damaged, returned or undelivered goods
33. Employee Pay Advice
This source document that can helped to provide written evidence concerning employee income.
34. Payroll Advice Report
This payroll reports helped small businesses understand payroll costs and summarize payroll data.
35. Evidence of Sale or Disposal of Assets
This is the removal of a long-term asset from the company’s accounting records.
Kindly add your own source documents to the Top 35 Source Documents in Accounting listed above. This will help us to update our records accordingly.
Watch several videos of how to prepare financial statements from source documents