The Impact of Cloud-Based Accounting Systems on Financial Transparency and Decision-Making in Iraqi SMEs

Digital transformation is revolutionizing financial practice worldwide. Current technological developments have significantly affected SMEs' financial reporting and strategic decisions. This study examines how cloud-based accounting systems affect Iraqi SMEs' financial transparency and in turn decision-making. A deductive, quantitative research design was employed, utilizing standardized questionnaires to collect data from 280 employees of Iraqi small and medium-sized enterprises (SMEs) who possess professional experience in the field of accounting. The results confirm that cloud accounting application and access had minor effects, whereas user competence show no impact. These findings affect SME owners, accountants, and policymakers. Cloud software, personnel training, system integration, and cybersecurity must be invested in to maximize cloud-based system outcomes. Policymakers may help local enterprises embrace digital literacy and cloud computing by creating guidelines and training. This study covers Iraqi SMEs, which have been underrepresented in worldwide studies on the digital accounting revolution in emerging countries, adding to the body of knowledge. It provides a detailed explanation of how a complex network of technological and human factors affects financial results and can be used as a model for introducing technological advances to the financial sector in a similarly structured economy.