One degree is 17.5 meters wide at 1000m distance. Since the bearing tool has a 1.5km radius you'll find you're 26 meters of from where you think it is. But that's not so bad because all plot's are off by one degree. And as was already said, at these distances, the target is usually much bigger than that one degree.
It should not be too difficult to correct the image with a 'photoshop' program by counter rotating the image 1 degree. But that probably would make it more blurry.
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