Overall Effect of Cloud-Based Accounting on Financial Information Quality of Organizations
DOI:
https://doi.org/10.55677/GJEFR/02-2025-Vol02E2Keywords:
Cloud Accounting; Organization; Financial management; Real time; Economic conditionsAbstract
This paper explores the overall effect of cloud-based accounting in enhancing financial information quality of organizations. Respondent demographics indicate a majority of female participants (57.1%) and those aged 3144 years (52.6%). Educational qualifications showed 51.8% held a B.Sc, with MBA/M.Sc holders at 36.8%. The findings reveal that 63.9% of respondents agree on the benefits of cloud-based accounting for financial information quality, and 67.7% affirm its potential in reducing operational costs and increasing profitability in SMEs. Conversely, 62.4% of respondents disagree that real-time data access enhances managerial decision-making. Nonetheless, scalability features were largely recognized for sustaining profitability during growth. Chi-square analysis supports the hypothesis that cloud-based accounting systems improve financial information quality, reduce operational costs, and support scalability and growth. In conclusion, the findings underscore the significant impact of cloud-based accounting on financial inforamtion quality and profitability within organizations, especially in SMEs. The study reveals that while scalability and cost reduction are widely recognized benefits. Overall, the analysis confirms the potential of cloud accounting as a strategic tool in sustaining organizational growth, reducing operational costs, and improving financial oversight. These insights highlight the need for organizations to leverage cloud-based solutions to foster efficiency and long-term profitability.
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