The effects of mobile cloud accounting on the operations of small, medium and micro-enterprises in selected Cape Town markets

Abstract

The fourth industrial revolution (4IR) has arrived, yet many SMMEs are struggling to embrace this technological revolution. Transition from a paper-based financial recordkeeping to digital platforms is tardy in the informal economy, yet transformation is crucial for businesses to remain competitive, particularly in a post Covid-19 era. This study investigated the extent of usage of mobile cloud accounting applications on the operations of the business of SMMEs at selected markets in Cape Town. Mobile cloud accounting technologies can have diverse benefits to offer the small and micro industry because of its flexibility and scalability. It can be used to record and generate financial information, or as a management tool for the business. The study followed a mixed method approach and data was collected from 121 participants around Cape Town and surrounding areas. The study was based on the Perceived Characteristics of Innovation (PCI) model by Moore and Benbasat (1991). The quantitative data collected was analysed and presented in the form of pie charts and tables, while the qualitative data was analysed via themes and codes. The findings revealed that many SMMEs in the informal sector are not aware of mobile cloud accounting and the advantages it offers. The study suggests that consultants of vendors must come on board to assist in providing training and awareness in the attempt to transform the informal sector into a digitalised informal sector.