The Impact of Cloud-Based Accounting on Financial Reporting Efficiency: A Comparative Study

Abstract

The rapid advancement of cloud computing has transformed traditional business practices, with accounting being one of the most significantly impacted areas. Cloud-based accounting systems are increasingly adopted by organizations due to their promise of enhanced efficiency, real-time data access, cost-effectiveness, and scalability. This study examines the impact of cloud-based accounting on financial reporting efficiency by conducting a comparative analysis with traditional, on-premise accounting systems. While industry reports highlight the technical advantages of cloud solutions, empirical evidence on their effectiveness in improving financial reporting outcomes remains relatively limited. To address this gap, a comparative, quantitative research design was employed. Data were collected from a sample of 400 accounting and finance professionals across diverse sectors, using a structured questionnaire covering constructs such as system quality, information quality, service support, ease of use, security, cost efficiency, and reporting outcomes. Statistical analysis was conducted to evaluate differences between cloud-based and traditional system users, focusing on dimensions such as timeliness, accuracy, transparency, and overall reporting reliability. Findings from the study demonstrate that cloud-based accounting significantly improves the speed, accessibility, and accuracy of financial reporting, while also reducing operational costs. However, challenges such as data security concerns and reliance on stable internet connectivity persist. The study contributes to both academic literature and professional practice by providing evidence-based insights and practical recommendations on the adoption of cloud-based accounting systems for enhanced financial reporting efficiency.