Factors that influence cloud accounting software adoption and its effect on accounting firms performance in Malaysia

Cloud accounting has revolutionised the accounting industry and is crucial in the accounting profession. Even so, the use of advanced cloud-based technologies in Malaysia is limited. There also has been a lack of research done on cloud accounting software in the accounting firms in Malaysia. The main purpose of this study is to investigate the factors that may influence cloud accounting software adoption and its effect on accounting firm’s performance in Malaysia. This study used quantitative method for data analysis. Data were collected using a set of questionnaires distributed to a sample of 317 owners, directors, partners, accountants, and managers. From there, 110 of the questionnaires were returned and used for further analysis. The data was analysed using the Statistical Package for Social Sciences (SPSS). From the result, currently, 43.6% of accounting firms that responded has already adopted cloud accounting software in Malaysia. The results of the study found that five out of seven hypotheses were supported. The research findings indicate that security, privacy, staff knowledge about cloud accounting software, cloud providers, and competitive pressure are significant and associated with adoption of cloud accounting. Internet reliability and top management support were not significant and thus, not supported. The finding also shows that cloud accounting software adoption is significant and positively associated with performance of accounting firms. This study attempts to localise the investigation, thus contributes theoretically by considering the unique context of Malaysia. Through the findings of this research, accountants, business owners, government, software providers and other related parties could acquire a better understanding of the factors that contribute to the adoption and benefits of cloud accounting software. This study encourages a practical shift in business practices by urging Malaysian accounting firms to switch from manual to cloud-based accounting processes