The absorption and usage of cloud accounting technology by accounting firms in Cape Town for services provided to their clients

Abstract

Cloud computing is one of the latest technological innovations and offers organizations of all sizes new and unique opportunities and challenges. Many firms worldwide have, however, become used to running their businesses in the traditional way and seem to be resisting the adoption of this new technology. This study explores the adoption and usage of cloud technology by accounting firms in South Africa for the services provided to their clients. Online questionnaires were completed by 27 owners or managers of accounting firms in Cape Town and descriptive and inferential statistical methods were used to analyse the results. It emerged that significant awareness exists of cloud accounting technology by accounting firm managers and owners. Smaller firms seem to be more positive toward the technology and also more agile and capable of deploying it than medium-large firms. The medium-large firms could be classified as the late majority and laggards on the technology adoption curve while smaller firms could be classified as innovators, early adopters and the early majority. Marketers of cloud accounting products need to consider the firm’s size, as well as the industrial decision-making process and perceived risk involved when designing their marketing campaigns.