The Effect of Cloud Accounting on Organisational Productivity; a Case Study of Springhlight Technology

INTRODUCTION

BACKGROUND OF THE STUDY

Cloud accounting applications provide much of the same functionality as desktop accounting software with one major difference: Cloud accounting apps run on remote servers and are accessed via a web browser. Cloud accounting applications are typically offered in one of these two formats: Hosted applications – The hosted solutions involve your desktop or client/server accounting application running on a remote server. You gain access to your accounting software using a remote session via the Internet. This solution allows you to use your existing software and data. Software as a Service – In this format, the accounting software and your data are stored on the vendor’s servers and are accessible via a web browser. If you have ever used a social media site or online banking, you have used a SaaS solution. The advent of new generation of Web-based services is provided by “Cloud Computing. Since 2010 there has been a great revolution of the use of this services. (Yoonesian, 2014). However many firms and organizations have still not adopted this technology in the world but due to its significance in driving high organizational productivity and performance it seem inevitable that the use of this technology increase in the near future (Maleki, 2014). The use of   cloud computing technology enable  users  to access  programs, storage spaces, processing and even application development platforms through various tools; such as PCs, laptops, cellphones and PDA, and also through services provided by cloud computing. So, resources are placed on the servers’ side instead of users’ side. Cloud computing services are in the form of Utility Computing; this means that customers’ needed services will be offered in servers and its payments like other public utilities- electricity, water, telephone, etc. are based on the level of individuals’ usage (Akbari & Sargolzaii Javan, 2010). NIST defines cloud computing as a model for having comprehensive and easy access; and according to the order of a set of configuration-able computing resources such as networks, servers, storing spaces, applications and services to provide service quickly and through doing the least work or without the need for intervention of service provider. In other words, cloud computing is a model from sets of models available for sharing resources. Other computing models are grid computing, autonomic computing, mainframe, utility computing, and peer to peer computing (Maleki, 2014). Could computing is an approach which it offers a wide range of ICT services according to the demand and need of customer through public (Internet) and private networks or both of them by using ICT developments like virtualization and grid computing through virtual hardware and software (Sultan & Sultan, 2012). Cloud computing refers to the applications provided on the Internet and systemic hardware and software in the data centers (Armbrust et al, 2010) Cloud accounting ensures that accounting software and operating results are available to you from a browser or mobile device. This is something that you can’t do with today’s desktop accounting solutions. It also provides better security Most cloud accounting software is run from a data center, which offers multiple levels of security to protect the software and your data. The typical data center has significantly better security than most small businesses. Also no installations or updates required – Cloud accounting vendors maintain the software and install the updates. It also provides Automatic backups– The cloud vendor assumes responsibility for system backups. Your data is often stored in multiple data centers that are in geographically diverse locations. Cloud accounting applications are rented not purchased. They do not require a small business to invest in servers or software. Cloud accounting applications are delivered via a web browser and typically support all popular platforms. Through this emerging technology’s approach, the world of computing moves quickly to a direction that applicants tend to get services from cloud providers instead of doing works and getting required services locally. So, cloud computing is a way to increase capacity, or to do it dynamically without investing in new infrastructure. It is also training a new person or authorizing new software. Because it assigns the necessary measures and solutions for cloud providers rather than focus on providing appropriate local solutions for the mentioned issues. Also, organization will prevent from continuity in providing solutions for mentioned issues significantly if the organization itself be a cloud provider (Barnett, 2010).The study seek to investigate the effect of cloud accounting on Organizational productivity. A case study of spring light technology.

STATEMENT OF THE PROBLEM

The complexity of organizational operations and the relatively high level of competition is greatly affecting the productivity level of many organizations. Consequently, the developments in management knowledge have made it inevitable the existence of evaluation system. The lack of proper evaluation system for the evaluation of Use of resources and facilities, personnel, objectives and strategies is one of the symptoms of organization disease (Tavalaaee, 2007). Continuous improvement in organizations’ performance makes a great power of synergy that these could support development. The use of   cloud computing technology enable users  to access  programs, storage spaces, processing and even application development platforms through various tools; such as PCs, laptops, cellphones and PDA, and also through services provided by cloud computing. However, many firms and organizations have still not adopted this technology in driving high organizational productivity and performance. (Maleki, 2014). Organizational performance improvement should be based on a process which it is called “performance cycle”. Every organizational performance application should start from measuring performance and then evaluate it (Pakravan & Xowbiari, 2015). The problem confronting the study is to investigate the effect of cloud accounting on organizational productivity. A case study of spring light technology.

OBJECTIVES OF THE STUDY

The Main Objective of the study is to investigate the effect of cloud accounting on Organizational productivity. A case study of spring light technology

The specific objectives include:

1 To determine the effect of cloud accounting on the financial performance of spring light technology.

2 To determine the effect of cloud accounting on customer performance of spring light technology.

3 To determine the effect of cloud accounting on the operational performance of spring light technology.       

RESEARCH QUESTIONS

1 What is the effect of cloud accounting on the financial performance of organization?

2 What is the effect of cloud accounting on customer performance of organization?

3 What is the effect of cloud accounting on the operational performance of organization?

4 What is the effect of cloud accounting on the financial performance of spring light technology?

5 What is the effect of cloud accounting on customer performance of spring light technology?

6 What is the effect of cloud accounting on the operational performance of spring light technology?

SIGNIFICANCE OF THE STUDY

The study proffers cloud accounting as a successful tool in implementing strategic plans of organization to achieve a new performance measurement system.

It provides relevant information to aid managers and accountants for excellence performance.

STATEMENT OF THE HYPOTHESES

Ho₁: There is no significant effect of cloud accounting on the financial performance of Springlight technology.

Ho₂: There is no significant effect of cloud accounting on the customer performance of Springlight technology.

Ho₃: There is no significant effect of cloud accounting on the operational performance of Springlight technology.

SCOPE OF THE STUDY

The focuses on the investigation of the effect of cloud accounting on organizational productivity. A case study of spring light technology.

LIMITATION OF THE STUDY

The study was confronted with logistics and geographical factors.

DEFINITION OF TERMS

ORGANISATION DEFINED

Organization is a set of interactive processes that expected performance from them -executive operation of processes- is realized among different organizational units (Bayazi Tehranvand et al, 2009).

CLOUD ACCOUNTING DEFINED

Cloud accounting applications provide much of the same functionality as desktop accounting software with one major difference: Cloud accounting apps run on remote servers and are accessed via a web browser.

PRODUCTIVITY DEFINED

Productivity is viewed as the increase in the quantity of output produced over a given quantity of input from the productive system. National productivity is the increase in the living standard of the people.