Drivers and Barriers of Cloud Accounting Adoption

In response to the challenges posed by these complex supply chains, businesses are turning to Software as a Service (SaaS) solutions that leverage cloud accounting. However, because cloud accounting relies on Industry 4.0 technologies, it is perceived as an expensive endeavor that necessitates a complete overhaul of existing business processes. This perception has led to hesitation among companies, especially those in developing countries, to invest in cloud accounting technology without clear and promising benefits and incentives. This paper’s primary objective is to identify both the drivers that encourage and the barriers that hinder the adoption of cloud accounting. This knowledge can help companies and policymakers understand how to address these challenges effectively or provide the necessary incentives to promote adoption. Intriguingly, it is observed that for each identified barrier, corresponding drivers that could potentially mitigate these obstacles are also present. This finding suggests a disconnect between academic research and its practical application in the industry. In light of this disconnection, the paper emphasizes the need for future research to focus on bridging the gap between academia and industry. Furthermore, it suggests that future studies should explore the relationship between these drivers and barriers and their impact on a company’s performance. Ultimately, the paper underscores the importance of understanding the dynamics of cloud accounting adoption to harness its full potential for businesses in this rapidly evolving technological landscape.