Investigating the Role of Cloud Accounting in Enhancing Financial Reporting Quality

Abstract

Objective: This study aims to investigate the role of cloud accounting in enhancing the quality of financial reporting. Methodology: The required data for conducting and implementing the research were collected from 18 experts with master's and doctoral degrees in accounting and a minimum of five years of experience with cloud accounting. In this study, an interpretive structural modeling (ISM) approach was employed to design a model for the role of cloud accounting in enhancing financial reporting quality. Findings: The results of the interpretive structural modeling using the exploratory model indicated that cloud accounting hardware factors, including process automation, advanced upgrade capabilities, cloud and virtual network servers, management and support tools, and workstations, along with cloud accounting software factors, such as flexibility and continuous improvement, scalability, information security, ease of use of cloud accounting, performance and analysis speed, data recovery capability, and remote automated reporting, contribute to the enhancement of financial reporting quality. This enhancement is reflected in dimensions such as improved transparency, increased accuracy in automated reporting, reduced errors, improved calculations, and data protection. Conclusion: The findings of this study indicate that the adoption of cloud accounting can play a significant role in enhancing financial reporting quality. Given the hardware and software advantages of cloud accounting, organizations can achieve greater transparency, higher accuracy, and reduced errors in financial reporting. These findings can serve as an effective guide for financial managers and accountants in making strategic decisions to improve financial reporting systems.