Cloud-Based Accounting Systems and Financial Reporting Efficiency: A Comparative Review

Abstract

The rapid adoption of cloud-based accounting systems has transformed the landscape of financial management and reporting for organizations of varying sizes. Unlike traditional on-premise accounting software, cloud-based platforms offer real-time data accessibility, automated processes, and enhanced integration with other financial tools. This study presents a comparative review of the impact of cloud-based accounting systems on financial reporting efficiency, focusing on accuracy, timeliness, cost-effectiveness, and decision-making support. By synthesizing findings from existing literature and empirical evidence, the review highlights how cloud systems improve the quality and reliability of financial information through streamlined workflows, advanced data analytics, and reduced human error. Furthermore, the comparative perspective reveals distinct advantages for small and medium enterprises (SMEs), where resource constraints often limit the effectiveness of conventional systems. However, the review also identifies challenges such as cybersecurity risks, dependency on internet connectivity, and resistance to technological change, which may hinder full adoption. Overall, the study concludes that while cloud-based accounting systems significantly enhance financial reporting efficiency, their effectiveness depends on factors such as organizational readiness, digital literacy, and regulatory compliance. The findings provide useful insights for practitioners, policymakers, and researchers seeking to understand the evolving role of technology in financial reporting and its implications for sustainable business practices.