INFLUENCE OF CLOUD-BASED COMPUTING ON FINANCIAL MANAGEMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN ABEOKUTA METROPOLIS OF OGUN STATE

Abstract

This study examined the influence of cloud-based computing on the financial management of small and medium scale enterprises (SMEs) in Abeokuta Metropolis of Ogun State. Specifically, the study investigated the influence of cloud-based computing on financial reporting practices, cash flow management, and financial decision-making among SMEs. A descriptive survey research design was adopted for the study. The population consisted of SME owners and managers in Abeokuta Metropolis, while a sample size of 100 respondents was selected using simple random sampling technique. A structured questionnaire titled Influence of Cloud-Based Computing on Financial Management Questionnaire (ICBCFMQ) was used for data collection. The instrument was validated by experts in Business Education and Measurement and Evaluation, while a reliability coefficient of 0.82 was obtained using Cronbach Alpha method. Data collected were analyzed using mean and standard deviation to answer the research questions, while Pearson Product Moment Correlation (PPMC) was used to test the hypotheses at 0.05 level of significance. The findings revealed that cloud-based computing positively influences financial reporting practices, cash flow management, and financial decision-making among SMEs in Abeokuta Metropolis of Ogun State. The study also established significant relationships between cloud based computing and the selected financial management variables. The study concluded that cloud-based computing enhances financial efficiency, transparency, and business performance among SMEs. It was therefore recommended that SME owners should adopt cloud-based financial systems and acquire adequate digital skills for effective financial management.This study examined the influence of cloud-based computing on the financial management of small and medium scale enterprises (SMEs) in Abeokuta Metropolis of Ogun State. Specifically, the study investigated the influence of cloud-based computing on financial reporting practices, cash flow management, and financial decision-making among SMEs. A descriptive survey research design was adopted for the study. The population consisted of SME owners and managers in Abeokuta Metropolis, while a sample size of 100 respondents was selected using simple random sampling technique. A structured questionnaire titled Influence of Cloud-Based Computing on Financial Management Questionnaire (ICBCFMQ) was used for data collection. The instrument was validated by experts in Business Education and Measurement and Evaluation, while a reliability coefficient of 0.82 was obtained using Cronbach Alpha method. Data collected were analyzed using mean and standard deviation to answer the research questions, while Pearson Product Moment Correlation (PPMC) was used to test the hypotheses at 0.05 level of significance. The findings revealed that cloud-based computing positively influences financial reporting practices, cash flow management, and financial decision-making among SMEs in Abeokuta Metropolis of Ogun State. The study also established significant relationships between cloud based computing and the selected financial management variables. The study concluded that cloud-based computing enhances financial efficiency, transparency, and business performance among SMEs. It was therefore recommended that SME owners should adopt cloud-based financial systems and acquire adequate digital skills for effective financial management.