A Review of Cloud-Based Accounting Systems and Their Impact on Financial Reporting Efficiency

Authors: Apoorva Gaurav, More Tarachand Ambar

Published in: IJRRETAS, Volume 11, Issue 6, pp. 19-31 (04 Jun 2025)

Impact Factor: 7.95 (2025)

License: CC BY 4.0 CC BY 4.0 (Open Access)

Certificate: View Certificate

Abstract

Cloud-based accounting systems have moved from a niche alternative to a mainstream platform for recording transactions, closing books, and preparing financial reports. This review paper examines how cloud-based accounting systems influence financial reporting efficiency, using a comparative lens that contrasts cloud arrangements with traditional on-premises systems. The paper synthesizes evidence on conceptual foundations, adoption determinants, reporting outcomes, and risks. The literature associates cloud accounting most consistently with real-time data access, lower infrastructure burden, easier collaboration, and faster reporting cycles, particularly for small and medium-sized enterprises (SMEs). Evidence on reporting quality is more mixed and relies heavily on perceptual survey data from developing economies. Security, privacy, regulatory compliance, vendor dependence, and uneven user competence emerge as the principal constraints, while analytics and artificial intelligence are widening what cloud platforms can deliver. The review concludes that efficiency gains are real but conditional on implementation depth, governance, and organizational readiness, and it proposes directions for longitudinal, multi-country, and objective-outcome research.

Keywords
  • cloud accounting
  • accounting information systems
  • financial reporting efficiency
  • SMEs
  • digital transformation
  • comparative analysis
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How to Cite
APA: Gaurav, A., & Ambar, M. T. (2025). A Review of Cloud-Based Accounting Systems and Their Impact on Financial Reporting Efficiency. International Journal for Rapid Research in Engineering Technology & Applied Science, 11(6), 19–31. https://ijrretas.com/research-paper/a-review-of-cloud-based-accounting-systems-and-their-impact-on-financial-reporting-efficie-317