Cloud Accounting : A Paradigm Shift towards Accounting Transparency

Cloud accounting is an emerging accounting discourse driven by information technology and cloud computing systems. Accordingly, organizations reflect a great deal of scepticism about it. They held it is unviable on the multitude of fronts. Therefore, the central objective of the study is to gauge to which the Cloud accounting mechanism is operationally and technically effective for organizations, given the reservations and concerns raised against it. The study is embedded in the theoretical framework of cloud computing including Technological Organizational Environment (TOE), Diffusion Innovations (DOI), Technological Acceptance Model, and Institutional Theory (INT). These theories have provided ample basis and background to identify the variables, dimensions and develop the instrument for the study. The study is based on empirical data collected from four different groups of accounting professionals through a structured pre tested, valid and reliable instrument developed by the author and used in the study. The study noted that cloud accounting is simple, convenient, flexible, productive, and requires plausible organizational backend support. The organizations need to train its people and create genuine infrastructure for its effective operation after taking full assurance from cloud service provider about their data security through the creation of joint security firewalls. The study would go in a long way to contribute and help accounting professionals to maintain accounts conveniently and generate financial statements more effectively. Moreover, it would eliminate the chance of creating rosy accounts, window dressing of financial statements through which investors are cheated. The study therefore has profound professional and social benefit. The study is an original and authentic research work of the author conducted in the UT of Jammu and Kashmir and Uttar Pradesh.