Impact of Cloud-Based Accounting Systems on Financial Reporting Accuracy among FMCG Distributors in Nagpur

Abstract

The current research study looks at how cloud-based accounting systems (CBAS) affects financial reporting among the FMCG distributors in Nagpur. As more distribution providers gain digitalization, cloud accounting platforms will have the capacity to increase the accuracy of reporting, lessen mistakes in manual reporting, and offer greater timeliness in financial statements. The research design is a quantitative, descriptive and explanatory research study founded on primary data, through the use of structured questionnaire among 120 FMCG distributors. The relationship between financial reporting accuracy and CBAS adoption was tested with the help of statistical resources, mean analysis, independent sample t-test, correlation, and regression analysis. The results show that the rate of error containment, accuracy of reconciliation, data reliability, and efficiency in internal control by the distributors who use cloud-based accounting systems is significantly high than the rate among non-users. The regression findings show that mandating CBAS adoption would capture a significant percentage of the variation over financial reporting accuracy. In addition, system integration and the training of the users were discovered to enhance reporting outcomes. The researchers conclude that cloud-based accounting systems are very important in improving financial transparency and effective operations in the FMCG distribution market in Nagpur. The conclusions contain practical insights to the distributors, software sellers, and policy makers to encourage the digital transformation of small businesses and medium enterprises.