Cloud Accounting, Operational Efficiency, and Financial Reporting Quality: Evidence from Iraqi Institutions

Abstract

This research investigates the effect of cloud accounting systems on the operational efficiency and financial reporting quality of Iraqi organizations. The study surveyed 100 employees from five Iraqi institutions across industrial, telecommunications, and commercial sectors. Using descriptive statistics, correlation analysis, and regression modeling, the research examined the relationship between cloud accounting system adoption and organizational performance outcomes. Results revealed that cloud accounting systems are significantly associated with both operational efficiency (r = 0762, p < 0001) and financial reporting quality (r = 0718, p < 0001). Additionally, operational efficiency demonstrated a strong, positive, and direct impact on reporting quality (ρ = 0701, p < 0001). The study identified work experience and education level as significant moderating variables influencing these relationships. Comparative analysis showed 24% improvement in operational efficiency and 25% enhancement in financial reporting quality post-implementation. The findings support all three research hypotheses, confirming the transformative potential of cloud accounting systems in developing economy contexts. The study recommends enhanced adoption of cloud accounting applications, comprehensive technical training programs for staff, and development of supportive technological infrastructure in Iraqi governmental institutions to improve financial and administrative performance.