Cloud-Based Accounting and Financial Reporting Quality in Nigeria: A Study of Nigerian Banking Industry

This study examined the effect of cloud-based accounting systems (CBAS) on the financial reporting quality (FRQ) of Deposit Money Banks (DMBs) in Nigeria. Specifically, it assessed the influence of CBAS on financial report transparency and disclosure quality, the reliability and accuracy of reported earnings, and the timeliness and efficiency of financial reporting. A survey research design was adopted, targeting professionals directly involved in financial reporting processes within licensed Nigerian DMBs. Using G*Power, a minimum sample size was determined; however, 400 respondents were surveyed to enhance generalizability and statistical robustness. Primary data were collected through a structured questionnaire measured on a five-point Likert scale and analysed using SPSS, employing descriptive statistics, correlation, and multiple regression analysis. Findings revealed that CBAS significantly improved transparency and disclosure quality, with cost-effectiveness, security and compliance, and integration and scalability emerging as key predictors. The results further showed that security and compliance, integration and scalability, and user-friendliness significantly enhanced the reliability and accuracy of reported earnings. Additionally, integration and scalability and cost-effectiveness positively influenced the timeliness and efficiency of financial reporting, although user-friendliness exhibited a negative effect on timeliness. Overall, the study concludes that CBAS significantly enhance financial reporting quality in Nigerian DMBs and recommends strategic technological investment, capacity building, and supportive regulatory frameworks to maximize digital transformation benefits in the banking sector.

Cloud-Based Accounting Systems, Financial Reporting Quality, Transparency

1. Aggreh, M., Ojeka, S., & Ohiomah, A. (2018). Institutional pressures and the adoption of financial reporting quality in the Nigerian banking sector. International Journal of Business and Social Science, 9(5), 112-124. [Google Scholar] [Crossref]

2. Agawal, H., & Jethy, J. R. (2024). Best practices for estimating and testing interaction effects in management research. Journal of Management, 50(1), 252-284. [Google Scholar] [Crossref]

3. Akai, A. E., Ibok, I. I., & Akinninyi, O. A. (2023). Cloud-based accounting and quality of financial reports of selected deposit money banks in Nigeria. Journal of Accounting and Financial Management, 9(2), 45-60. [Google Scholar] [Crossref]

4. Akpan, I. J., Udoh, E. A. P., & Adebisi, B. (2023). Cloud-based accounting and financial information accuracy in selected Nigerian organizations. Journal of Emerging Technologies in Accounting, 20(1), 123-140. [Google Scholar] [Crossref]

5. Alhujran, O., Al-Debei, M. M., & Chatfield, A. (2018). The imperative of cloud computing in the public sector: A systematic review and future research directions. Government Information Quarterly, 35(2), 203-215. [Google Scholar] [Crossref]

6. Almulla, D., & Aribi, Z. A. (2022). Corporate governance and cloud accounting adoption in the banking sector. Journal of Risk and Financial Management, 15(4), 1-18. [Google Scholar] [Crossref]

7. Al-Okaily, M., Alkhwaldi, A. F., Abdulmuhsin, A. A., Aqudah, A. A., & Al-Okaily, A. (2022). The impact of digital transformation on financial performance under the COVID-19 pandemic: The case of Jordanian banks. Journal of Financial Reporting and Accounting. Advance online publication. [Google Scholar] [Crossref]

8. Bertalanffy, L. V. (1950). The theory of open systems in physics and biology. Science, 111(2872), 23-29. [Google Scholar] [Crossref]

9. Chikere, C. C., & Nwoka, J. (2021). System theory and organizational performance in the Nigerian banking sector. International Journal of Business and Management, 16(4), 112-125. [Google Scholar] [Crossref]

10. Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates. [Google Scholar] [Crossref]

11. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-340. [Google Scholar] [Crossref]

12. Davis, P., & Cooper, R. (2023). The future trajectory of cloud-based accounting: AI, blockchain, and cybersecurity. Journal of Accounting Technology, 18(2), 45-62. [Google Scholar] [Crossref]

13. Egiyi, M. A., & Udeh, S. N. (2020). Cloud accounting: A paradigm shift in accounting practices in Nigeria. International Journal of Advanced Research in Computer Science and Software Engineering, 10(4), 1-8. [Google Scholar] [Crossref]

14. Faith, O., & Kariuki, S. (2024). Effects of digital transformation on the quality of financial reporting in the Nairobi City County Government, Kenya. International Journal of Public Sector Management, 37(2), 145-162. [Google Scholar] [Crossref]

15. Fali, B., Ojo, O., & Adeyemi, S. (2021). Institutional isomorphism and IFRS adoption in Nigeria. Journal of Accounting in Emerging Economies, 11(3), 421-440. [Google Scholar] [Crossref]

16. Freeman, R. E. (1984). Strategic management: A stakeholder approach. Pitman. [Google Scholar] [Crossref]

17. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning. [Google Scholar] [Crossref]

18. Huang, K., Wang, M., & Zhang, T. (2021). The impact of cloud-based accounting information systems on financial reporting quality: Evidence from Chinese listed firms. Journal of Information Systems, 35(2), 163-180. [Google Scholar] [Crossref]

19. IASB. (2010). The conceptual framework for financial reporting. International Accounting Standards Board. [Google Scholar] [Crossref]

20. Ibrahim, A. E., Elamer, A. A., & Ezat, A. N. (2022). The impact of cloud accounting on corporate transparency and disclosure quality. Journal of Financial Reporting and Accounting, 20(1), 123-145. [Google Scholar] [Crossref]

21. Ifinedo, P. (2018). The effects of security and compliance on the adoption of cloud computing in financial institutions. Information Systems Frontiers, 20(4), 887-903. [Google Scholar] [Crossref]

22. Jones, L., & Silva, P. (2022). Professional accountants' attitudes toward the adoption of cloud- based accounting systems in Ghana. Accounting Perspectives, 21(3), 345-367. [Google Scholar] [Crossref]

23. Kmaleh, S. (2023). The impact of cloud-based accounting on the quality of accounting information and its reflection on the development of international financial reporting standards (IFRS) in Jordanian corporations. Journal of Financial Reporting and Accounting. Advance online publication. [Google Scholar] [Crossref]

24. Masoudi, A. (2023). The role of financial technology (FinTech) in improving banking performance quality. Journal of Financial Services Marketing, 28(1), 45-60. [Google Scholar] [Crossref]

25. Mendoza, A., Pizzini, M., & Wang, W. (2023). The impact of survey response rates on research conclusions. Accounting Horizons, 37(2), 1-22. [Google Scholar] [Crossref]

26. Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83(2), 340-363. [Google Scholar] [Crossref]

27. Miller, E. J., & Rice, A. K. (1967). Systems of organization. Tavistock Publications. [Google Scholar] [Crossref]

28. Ndah, E. S., & Ekwueme, C. M. (2024). Cloud-based accounting information systems and the performance of quoted banks in Rivers State, Nigeria. Journal of Accounting and Financial Management, 10(1), 34-50. [Google Scholar] [Crossref]

29. Nwaubani, J., & Okoro, G. (2018). Institutional pressures and financial reporting quality in Nigerian banks. Journal of Financial Regulation and Compliance, 26(4), 512-528. [Google Scholar] [Crossref]

30. Ojeh, P., Okafor, T., & Eze, M. (2025). IFRS adoption and stakeholder confidence in the Nigerian banking sector. Journal of Accounting in Emerging Economies, 15(1), 1-20. [Google Scholar] [Crossref]

31. Okafor, T. G., Odunze, L. S., & Ibiam, O. (2021). Cloud-based accounting and financial reporting in Nigeria. Journal of Accounting and Taxation, 13(2), 112-125. [Google Scholar] [Crossref]

32. Okoye, E. I., & Ezejiofor, R. A. (2020). IFRS adoption and financial reporting quality in Nigerian banks. International Journal of Business and Social Science, 11(5), 1-12. [Google Scholar] [Crossref]

33. Olaniyi, O. O., Adekunle, Y. A., & Ogunjimi, J. A. (2022). Barriers to cloud accounting adoption in Nigerian financial institutions. African Journal of Management, 8(1), 78- 95. [Google Scholar] [Crossref]

34. Olaoye, F. O., & Akadi, J. U. (2024). The impact of cloud-based accounting systems on the performance of selected deposit money banks in Nigeria. Journal of Finance and Accounting, 12(1), 23-40. [Google Scholar] [Crossref]

35. Onifade, T., & Dedire-Ampitan, O. (2024). The impact of cloud-based accounting technologies on the financial performance of listed Deposit Money Banks in Nigeria. Journal of Accounting and Finance, 24(1), 55-70. [Google Scholar] [Crossref]

36. Owolabi, S. A., & Izang, A. A. (2020). Impact of cloud-based accounting systems on financial reporting quality in SMEs. Journal of Accounting and Management, 10(2), 45-60. [Google Scholar] [Crossref]

37. Perri, D. F., Zimmermann, R., & Kortmann, S. (2023). The role of security and control in financial reporting systems. Journal of Information Systems, 37(1), 167-189. [Google Scholar] [Crossref]

38. Perri, D. F., & Muça, E. (2023). The use of cloud computing in Albanian accounting businesses. Journal of Accounting and Management Information Systems, 22(1), 5-25. [Google Scholar] [Crossref]

39. Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson Education. [Google Scholar] [Crossref]

40. Scott, W. R., & Davis, G. F. (2021). Organizations and organizing: Rational, natural and open systems perspectives. Routledge. [Google Scholar] [Crossref]

41. Shuaibu, A., Bello, A., & Isa, M. (2023). Digital transformation and financial reporting in Nigerian deposit money banks. Journal of Financial Reporting and Accounting, 21(2), 345-365. [Google Scholar] [Crossref]

42. Sobhan, A. (2019). Cloud accounting vs. traditional accounting: A comparative study. International Journal of Scientific and Research Publications, 9(2), 225-231. [Google Scholar] [Crossref]

43. Suarta, I. M., Suwintana, I. K., & Putra, I. G. C. (2022). Cloud accounting and its impact on business performance. Journal of Accounting and Investment, 23(1), 1-15. [Google Scholar] [Crossref]

44. Uthman, A. B., & Baki, A. A. (2014). Adoption of cloud computing in Nigerian small and medium enterprises. Journal of Management and Sustainability, 4(3), 120-131. [Google Scholar] [Crossref]

45. Vasilescu, M. D. (2008). Accounting information systems and cloud computing. University Press. [Google Scholar] [Crossref]

46. Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273-315. [Google Scholar] [Crossref]

47. Wisdom, S. (2022). The impact of cloud-based accounting on the operational performance of publicly traded manufacturing firms in Nigeria. Journal of Accounting and Management, 12(4), 78-95. [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors