IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 2 2024
DOI: https://doi.org/10.56201/ijssmr.v10.no2.2024.pg99.114

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Use of Cloud-Based Accounting Software: A Tool for Business Failure Prevention

Christian Ogochukwu Nduokafor, Uzoamaka Maureen Ukoh, Gilbert Ogechukwu Nworie

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Abstract

The study examined the effect of usage of cloud-based accounting software on business failure prevention. The research context covered the consumer goods sector of the Nigerian exchange group. An ex-post facto research design was deployed on a purposively selected sample of fourteen (14) consumer goods firms. Secondary data were sourced from audited financial statements and annual reports of several consumer goods firms. The data collection phase extended over a decade, covering the financial years from 2012 to 2021. The descriptive statistical characteristics of the data were analyzed using measures such as the mean, standard deviation, minimum, and maximum values. In addition to descriptive analysis, the study employed robust least square regression method to test the hypotheses. The study found that the usage of accounting software significantly reduces the likelihood of business failure. In conclusion, adopting modern technological solutions, such as cloud-based accounting software, is a crucial and comprehensive strategy to enhance the financial health and resilience of businesses. We therefore recommend that governments, industry associations, and financial institutions should prioritize investments in technological infrastructure and skills development to support the widespread adoption of cloud-based accounting software.

keywords:

Accounting Software, Business Failure Prevention, Cloud-Based Accounting Software

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References:

Adjei, J. K., Adams, S., & Mamattah, L. (2021). Cloud computing adoption in Ghana;
accounting for institutional factors. Technology in Society, 65, 101583.

Aini, Q., Anoesyirwan, A., & Ana, Y. (2020). Effect of Cloud Accounting as income statement
on Accountant Performance. Aptisi Transactions On Management, 4(1), 13-21.

Al-Okaily, M., Alkhwaldi, A. F., Abdulmuhsin, A. A., Alqudah, H., & Al-Okaily, A. (2023).
Cloud-based accounting information systems usage and its impact on Jordanian SMEs’
performance: the post-COVID-19 perspective. Journal of Financial Reporting and
Accounting, 21(1), 126-155.

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