How accountant use drone technology

by | Jan 27, 2023 | Accounting Articles

Drone Techbology relevant to accountant

Introduction

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 deployed into 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.

Conclusion

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.

Implications

The implications are stated below:

  1. Be part of the at least 95% that will accept this new technology if they must prepare for the future.
  2. Develop a new skill that is all-encompassing for them to be relevant at all times and drive the development of the accounting profession.
  3. Become a consultant in the field to remain relevant and being in change of the world where we live by data.
  4. Become a strategic thinker
  5. Apply their professional judgement whenever is necessary.
  6. Established Drone-focused division or department should be set up to handle all matter related to drone and lastly
  7. Check the impact of drones on client’s business operations.

For more about using the right knowledge.

The pillars that make men great in the right knowledge

How it should be cited:

Ojeaburu, F. (2022). How accountant use of drone technology. https://ohimaiconsulting.com/how-accountant-can-make-use-of-drone-technology-to-better-theirjob/#:~:text=Drones%20may%20save%20money %20for,auditors%2C%20technology%20can%20enhance%20productivity.

References

Kanellakis, C., & Nikolakopoulos, G. (2017). Survey on computer vision for UAVs: Current developments and trends. Journal of Intelligent & Robotic Systems, 87(1), 141-168.Survey on Computer Vision for UAVs: Current Developments and Trends | SpringerLink

•Laricchia, F.(2022). Drone economy worldwide 2021-2026. https://www.statista.com/statistics/1234521/worldwide-drone-market/

Ovaska-Few, S. (2017). Drones Set To Invade Accounting Profession. Journal of Accountancy.

Treasury Single Account

by | Jun 22, 2021 | Public Sector Accounting

This shows various agencies of federal government that are stakeholder in the management of Treasury Single Account.
ohimaiconsulting.com

Treasury Single Account (TSA): This is defined as a unified structure of government bank accounts for MDA’s. TSA is a single account in the custody of the Central Bank of Nigeria (CBN). TSA is a bank account or a set of linked accounts through which the government transacts all its receipts and payments. Treasury Single Account is a concluding phase of the E-collection scheme. The Federal Government of Nigeria commenced the implementation of e-collection component of TSA in January 2015. The first Treasury Circular on e-Collection was issued on the 19th of March 2015.

E-collection automates and streamline revenues and other monies payable to MDAs as well as other Institutions and Parastatal directly into the Consolidated Revenue Fund (CRF) or designated accounts of each MDA at CBN using the CBN Payment Gateway.

This is one of the good initiatives of federal government of Nigeria that has help to bring about transparency and accountability. This initiative has given Nigeria government control over the management of fund in the hand of Ministries, Department and Agencies (MDAs).

OBJECTIVES OF FGN E-COLLECTION

  • Ensure total compliance with the relevant provisions of the 1999 Constitution of the Federal Republic of Nigeria (FRN) (Section 162 & 80).
  • Collect and remit all revenues due to the Federation Account and Federal Government Consolidated Revenue Fund.
  • Block all leakages in government revenue generation, collection and remittance
  • Enthrone a new regime of transparency and accountability in the management of government receipts.
  • Improve on availability of funds for development programs and projects.
  • Align with the CBN Cashless policy.
  • Ease the burden of revenue payers.

BENEFITS OF TSA

  1. Government have oversight of all revenue and other monies collected by MDAs

2. Increase Government receipt by blocking any form of leakages

3. Makes it easier for Nigerians to pay government through introduction of electronic channels like Cards, Internet Banking and POS.

4. Payment is received promptly, and service can be rendered to the payer

5. Ensure availability of funds for the execution of government policies, programmes and projects. Control aggregate cash flows within fiscal and monetary limits

6. Improve management of domestic borrowing programme

7. Investment of idle funds

8. Improves transparency and accountability of all FGN receipts

9. Consolidated view of government cash position and status

TREASURY SINGLE ACCOUNT STAKEHOLDERS

  1. Ministries, Departments & Agencies (MDAs);

2. Deposit Money Banks (DMBs);

3. Central Bank of Nigeria (CBN);

4. Service Providers.

THE ROLE OF CBN IN TSA

  1. Provide payment gateway platform

2. Development of overall e-collection and e-payment policies for the nation

3. Interfacing with Deposit Money Banks (DMBs) and monitoring them

4. Creation and maintenance of bank accounts including CRF/TSA, FAAC and TSA Sub Accounts

THE ROLE OF DEPOSIT MONEY BANKS (DMB)

Ensures that:

  1. Their duties under the subsisting Payment Gateway MOU are effectively discharged

2. Customers making payment to government are given prompt service

3. All collections in favour of government are promptly remitted

4. Operational and other relevant issues are logged with appropriate authorities (OAGF, CBN and REMITA) without delay

The ROLE OF MDAs

  1. Ensure that their revenue targets are met

2. Provide their payers with details of payment including amount and nature of payment

3. Guide payers on e-collection processes including how to pay at the bank or through other channels of the CBN Payment Gateway (Remita).

4. Where applicable, ensure that appropriate services are rendered upon confirmation of payment

THE ROLE OF OFFICE OF THE ACCOUNTANT-GENERAL OF THE FEDERATION (OAGF)

  1. Ensure effective implementation of e-collection

2. Development of operational guidelines

3. Proper monitoring of the collection gateway

4. Prompt reconciliation of all collections

5. Support MDAs, banks and payers for smooth operation of e-collection

6. Regular monitoring of all collections to ensure that they are promptly remitted and accounted for

7. Issuance as well as continuous review and update of the e-Collection guidelines and processes

8. Abide by the provisions of the Memorandum of Understanding (MOU) with CBN, Service Provider and Banks

THE ROLE OF SERVICE PROVIDER ie Remitta, Interswtich etc

  1. Work with CBN, OAGF and other stakeholders to articulate system requirements

2. Provide a robust, stable and effective integrated processing platform

3. Ensure the optimal availability of all relevant systems and platforms

4. Provide effective and efficient support to users of the platform

5. Provide users with relevant reports

6. Training of users on the use of the payment gateway.

E-PAYMENT

This is an electronic system of payment for all of government funds through the banks either commercial banks or CBN. The Federal Government of Nigeria commenced the implementation of Treasury Single Account (TSA) in April 2012, with the e-Payment component. E-payment covers the following transactions:

All payments to

  1. contracts and consultants.

2. service providers e.g. PHCN.

3. payment to staff.

4. payment to other government agencies e.g. National Health Insurance Scheme (NHIS), Federal Inland Revenue Service (FIRS), National Housing Fund (NHF).

Issuance as well as continuous review and update of the e-Collection guidelines and processes

BENEFITS OF E-PAYMENT

These are some of the E-Payment benefits:

It eliminates the:

1. Unacceptable delay in payments

2. The uses of cheques in payment of all transactions within the Federation Government

3. Interaction between the contractor and government official in the payment of FG contracts

4. Ghost workers




MDA category and Implementation strategy of TSA FGN E-CollectionDownload

For more information on Treasury Single Account, buy my book on

JOB INTERVIEW MADE EASY FOR PUBLIC SECTOR Dr Friday Ojeaburu

Contact Us – Ohimaiconsulting.Com

References

FGN MDA Categorization for FGN TSA/e-Collection

Ogbonna, G,N & Ojeaburu, F (2015). The Impact of Government Integrated Financial Management Information System (GIFMIS) on Economic Development of Nigeria. West African Journal of Business and Management Sciences, 4(1). 313-336. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3363159.

cite reference

Ojeaburu, F.(2021). Treasury Single Account. https://ohimaiconsulting.com/treasury-single-account/.