Cloud Accounting: A Theoretical Overview

Abstract

The literature on the topic of the Use and Integration of Accounting Software is quite extensive, but less broad in the context of challenges faced by SMEs, and even more and narrow when we look at the limited literature on the numerous challenges faced in a geographically dispersed location such as Oman. This literature review analyzes and investigates existing research on the challenges faced by SMEs in using and integrating accounting software, to find out the most significant and relevant variables previously identified through previous studies. The aim being to apply a select few of those variables and apply them to the context of Oman to identify the specific obstacles that Omani SMEs face. The literature review involved a methodical exploration of diverse academic databases, employing specific search terms such as “SMEs,” “accounting software,” “challenges,” “adoption,” “integration,” and “small business.” The selection criteria focused on peer-reviewed articles and subsequently, a comprehensive evaluation of abstracts and full-texts led to the identification of about 20 pertinent studies for in-depth analysis. The research looked upon coordinate with the central and fundamental themes and dimensions of the topic, and mainly consists of secondary data including peer reviewed journals on the importance of accounting software and the benefits for SMEs in comparison with traditional or manual accounting. Moreover, the main obstacles faced by SMEs in the adoption of accounting software is reviewed as well. The review of the selected literature has revealed that although there are numerous factors or challenges that influence the proper use and integration of accounting software, the studies all found certain key variables that stand out in relation to others. Furthermore, the most significant challenges faced seem to be affected by other variables such as the level of development of the economy or country or special circumstances such as the Covid-19 Pandemic. This means that this research which is carried out in less developed economy, and in a post-pandemic environment is necessary to reflect the actual circumstances of Omani SMEs implementing accounting software.