Sunny Oteteya TEMILE1, Ajueyitse Martins OTUEDON2, A.A. OKWOMA2, Samuel Ejiro UWHEJEVWE-TOGBOLO1, Prince EFANIMJOR1, , Elizabeth Noyenim ATUBE1, Ochuko Joy EDHEKU1, Festus Elugom UBOGU1,
1Department of Accounting Faculty of Management Science Dennis Osadebay Univeristy, Asaba, Delta State, Nigeria
2Department of Business Education School of Vocational Technical Education College of Education, Warri, Delta State, Nigeria
Abstract
For businesses to comply with international best practices and resolve discontent with conventional accounting systems is driving a sharp rise in the integration of cloud accounting packages (CAP) into business models worldwide. In order to effectively manage financial transactions, CAP uses software that is housed on distant servers. The study named Xero, FreshBooks, QuickBooks Online, and others as examples of cloud accounting tools. These tools promote operational efficiency, improve decision-making, and streamlining processes in CAP. The paper focused on various financial institutions which are listed in the Nigerian Exchange Group (NGX). The survey was conducted from July 2024 to October 2024. These financial institutions were picked because they have made large investments in state-of-the-art technologies. These financial firms also act as role models for others. The study made used of designed questionnaire of 5-point Likert scale, for 656 respondents, however, 638 were sent back in their completed survey format. This led to a remarkable 97.26% response rate. This quantity of valid replies is more than enough for accurate estimations in structural equation modeling (SEM), the study findings revealed that technological proficiency will improve the relationship between cloud accounting and financial institutions’ operational efficiency (FIOPE) amongst others. It was concluded that training staff members on how to setup and maintain accounting software is essential. This will improve operational efficiency by guaranteeing that employees are capable of overseeing and debugging the systems. The study recommended that should managers increase their investments in hybrid cloud solutions.
Keywords: Cloud accounting cost, operational efficiency, technological competence, financial institution.