Cloud Accounting Improves Financial Reporting for SMEs in Zimbabwe: Is it a Myth or Reality?
Keywords:
Cloud accounting, Financial reporting, Benefits of cloud accounting, SMEs, ZimbabweAbstract
Objectives: This paper examines whether cloud accounting enhances financial reporting for small and medium-sized enterprises (SMEs) in Zimbabwe, a sector that plays a critical role in national development but faces persistent financial management and compliance challenges. The study aims to evaluate the benefits, barriers, and enablers of cloud accounting adoption in this context. Prior Work: While cloud accounting has been widely studied in developed economies, limited evidence exists on its adoption and impact in developing countries with volatile economic conditions. This study builds on technology adoption research by extending its application to SME financial reporting in Zimbabwe. Approach: A quantitative survey of 132 SMEs was conducted and analysed using statistical techniques to assess adoption patterns, perceived benefits, and constraints. Results: The findings reveal that cloud accounting improves reporting accuracy, financial control, and accessibility. However, adoption is hindered by cost, limited technical capacity, and concerns over data security, while system integration and trust in providers emerged as key enablers. Implications: The study provides insights for policymakers, technology providers, and SME leaders on designing supportive policies and capacity-building initiatives to foster digital adoption. Value: By situating cloud accounting within a developing economy, this paper advances understanding of digital financial transformation and contributes original evidence to the discourse on SME financial resilience.
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