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.

E-Collection

by | Sep 25, 2021 | Accounting Articles, Public Sector Accounting

E-Collection stakeholders in Nigeria.
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E-Collection is electronic collection of government revenue. Therefore, E-Collection through Treasury Single Account received new development since inception.

However, some of the improvement to e-collection are in line with Central Bank of Nigeria (CBN) circular of 10th December 2020.

New Development of E-Collection/TSA implementation in Nigeria

1. New TSA cost of E-Collections for payer and Ministries, Department and Agencies (MDAs). The charges are grouped into two.

(A). Transaction charges borne by the payer.
i) If the payment is received through Point of Sales (POS), it will attract N150 plus 0.50 per cent of the amount being paid subject to a maximum of N1, 000 per transaction.

ii). If payment is received through other channeled, it attracts N150 exclusive of Value Added Tax (VAT)

(B). Transaction charges borne by the MDAs.

(i) They provide the platform for collection.

(ii) They will process all data about the payment and the payer.

(iii) They transmit the data and replicate them and lastly

(iv) Fund sweeping.  For this, stakeholder below is to receive from Payment Solution Service providers (PSSPs) or Deposit Money Banks (DMBs) fund sweeping. This depends on who is playing the collection role for the MDAs. NIBBS is to receives 10% while Office of the Accountant General of the Federation (OAGF) to receives 2.5%.

2. New TSA sharing formula for collection cost received among the various stakeholders as follows:

PSSPs——————————-43%

Collecting Banks——————33%

CBN———————————11%

NIBBS——————————-10.5%

OAGF——————————–2.5%

3. The government link the revenue generating agencies to TSA portal through (PSSPS). PSSPs are companies appointed by government to collect TSA payments from ministries departments and agencies (MDAs).

As at today, payer has to initiate payment from the receiving agencies portal. The way to initiate is to get register or enrolled in the receiving agencies portal.

Requirement to Sign Up for E-Collection/TSA Platform

For E-Collection platform to be effective, these requirements are essential:

a. Provide Tax Identification Number (TIN) and certificate

b. Attached company documents like Corporate Affairs Commission (CAC) Certificate

c. Wait for account to be approved by the receiving agencies

Then, payer cab initiate payment from payer personal account in the receiving agencies portal

Payer will automatically transfer to TSA portal from the receiving agencies portal, for instance Remita

4. Time to Initiate Payment

Payer can only initiate Payment into TSA only when step 3 is being completed.

5. Stakeholders

The addition of Etranzact, Interswitch to join SystemSpec (the operator of Remita) to collect government revenue. SystemSpec has acted as a sole PSSPS appointed by government to collect TSA payments from MDAs.

6. Electronic Payment Companies

The main electronic payment companies involved in TSA increased to four companies. They are Etranzact, Interswitch, SystemSpec and Nigeria Interbank settlement System (NIBSS).

Therefore, NIBBS ensures that all the relevant stakeholders comply with the framework and also communicate collection codes for remittance to PSSPs.

Conclusion

Ogbonna and Ojeaburu (2015) in their study recommended among others, that the government should strengthen Government Integrated Financial Management Information System (GIFMIS) module. Also, cover other area of interest in the national budget to achieve economic development. Moreover, more need to be done to ensure E-Collection are active in all MDAs.

for more information about e-collection

References

Aderinokun,K.Onwuamaeze. D. & Emejo,J.  (2020). CBN Unveils New Pricing Template for TSA Collections. THISDAYLIVE.

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 Businessnand Management Sciences, 4(1). 313-336. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3363159.