An Empirical Study on Cloud Accounting Adopted by Small and Medium-Size Enterprises in Japan

<p> This study aims to determine the factors influencing acceptance of cloud accounting among the executive managers of the Small and Medium-size Enterprises (SMEs) in Japan. We conducted an questionnaire-based survey to collect quantitative data regarding SMEs executive managers’ perceptions towards cloud accounting in terms of 1) the effectiveness, 2) accessibility, 3) cost efficiency, 4) management participation, and 5) robustness as the functions of the cloud accounting. We collected data from the SME CEOs or other executives who were the members of the Hyogo Association of Independent Small and Medium Enterprises of Japan. In total, we obtained 34 responses. The data was classified into two groups; SMEs that have already incorporated cloud accounting (CA SMEs) and those that have not incorporated cloud accounting (Non-CA SMEs), and implemented statistical comparisons by using t-test analysis technique.</p><p>Our main findings, which are not last but at least, are as follows.</p><p>1) Whether SME executives accepted and decided to adopt cloud accounting or not relied on their perceptions towards the effects of this technology. If they believed the functions they obtains from the cloud accounting meets the needs of the company with the managerial activities, they would decide to adopt it, or vice versa. However, it was also found that the executives of Non-CA SMEs had a tendency not to decide using cloud accounting although they did not really know about the features of this technology.</p><p>2) Almost of all SMEs executives who participated in this research had understood the cloud accounting allows users to access easily to wide range of financial data. However we found they tended to use cloud accounting through their desk-top computers in their office. This means that such an advantage in data accessibility of cloud accounting is not likely to be effectively used among the users, even though they have already equipped its technology in their companies.</p><p>3) We unfortunately failed to find the fact that the adoption of cloud accounting would encourage employees to participate more activities in the managerial activities. In this regard, some quantitative responses or interviews from the supplementary studies suggest further calls for the further research focusing more on variety customized settings of accounting systems using cloud accounting.</p><p> These results provide new insights regarding acceptance of cloud accounting and some key influential factors affecting to SME exectives’ decisions of its acceptance. Furthermore, the findings will assist accounting professionals, tax authorities, and standard setters to develop better communication.</p>