Factors influencing the adoption of cloud-based accounting: using the technology acceptance model (TAM) approach among small medium enterprises (SME) in Sungai Petani, Kedah

In the era of digital transformation, cloud-based accounting systems have become essential tools for enhancing business efficiency, especially among small and medium enterprises (SMEs). Despite their benefits, adoption of these systems among SMEs remains inconsistent due to various influencing factors. This study investigates the determinants affecting the adoption of cloud-based accounting among SMEs in Sungai Petani, Kedah, with a total population of 1,169 SMEs and an actual sample size of 108 respondents. Using the Technology Acceptance Model (TAM) as a theoretical foundation, data were collected through structured questionnaires and analysed using Statistical Package for the Social Sciences (SPSS). Five independent variables were examined: Perceived Ease of Use, Perceived Usefulness, System Compatibility, Data Security and Privacy, and User Satisfaction. The findings indicate that User Satisfaction (positive, significant) and Data Security and Privacy (positive, significant) significantly influence cloud accounting adoption among SMEs. Perceived Ease of Use, Perceived Usefulness, and System Compatibility showed no significant effect in this context. These results suggest that while functionality and ease are important during initial adoption, sustained use depends more critically on user satisfaction and robust security measures. This study contributes to the understanding of cloud accounting adoption by expanding TAM in a Malaysian SME context and offers practical insights for software developers and policymakers aiming to increase adoption rates. Emphasizing user experience and data protection can better support SME digital transformation efforts.