Feasibility application of cloud accounting in vietnam

OẠI HỌC QUỐC GIà HÀ MỘI &mà Q U K V CƠNG TRÌNH NGHIÊN c ứ u KHOA HỌC SINH VIÊN Năm học 2012 FEASIBILITY APPLICATION OF CLOUD ACCOUNTING IN VIETNAM Tác giả: Trần Ngọc Trung Giáo viêm hướng dẫn: PGS Phạm Đức Hiếỉi HÀ NỘI, 2012 266 Acknowledgements This paper has been finished with the involvement of many parties, and I appreciate all the assistance whether small or great Thanks to the coordinators of both the Department of Academic Affairs and Research Development and Department of Social Sciences, Humanities and Economics of International School - Vietnam National University for creating the opportunity for students to the scientific research in school Schedules, instructions, suggestions, advice, and helpful support have been given to us with timing and exactness The one that I would most like to show my great gratitude to is my thoughtful supervisor He has supported me carefully from the time I got the idea, through the work process and up until a paper Last but not least, I would like to truly give thanks to all of the accountants and friends who sacrificed their working time to complete the survey and connect me with Inumbers of others 267 LIST OF FIGURES Title Accountant’s knowledge on Cloud Accounting Gender of Accountants who don't know Cloud Accounting 17 Gender of Accountants in Vietnam 18 Current level of Cloud accounting in Vietnamese entities 19 Types of entities apply Cloud Accounting 20 Types of entities don't apply Cloud Accounting 21 i IT Infrastructure of the enterprises for Cloud Accounting 22 Classify of entities have IT infrastructure for Cloud Accounting 23 Cloud Accounting of Vietnamese enterprises in future 24 Classify of accountant whose company won't adopt Cloud Accounting to the application of Vietnam 25 Application of Cloud Accounting in Vietnam tomorrow 26 Classify of accountants who believed in future of cloud accounting in Vietnam 27 Classify of accountants who did not believe in future of cloud accounting in Vietnam 28 Cost reduction of Cloud Accounting 29 Conveniences of Cloud Accounting 30 Numbers of updated features of Cloud Accounting 32 Figure 17 Upgrade and expansion of Cloud Accounting 33 Figure 18 Enhance productivity of Cloud Accounting 34 Figure 19 Costs of adopting Cloud Accounting 36 Figure 20 IT Infrastructure in adopting Cloud Accounting 37 Figure 21 Accountants’ resistance in adopting Cloud Accounting 39 Figure 22 Confidentiality of data in adopting Cloud Accounting 40 List of Tables Title Table Page Comparison between cloud accounting and accounting on premise Table Table Influence of accountant’s knowledge of Cloud Accounting X1 cost benefit evaluation 29 I Influence of accountant’s knowledge of Cloud Accounting on conveniences evaluation Table Influence of accountant’s knowledge of Cloud Accounting on updated features evaluation Table Influence of accountant’s knowledge of Cloud Accounting on upgrade and expansion benefits evaluation Table 32 33 Influence of accountant’s knowledge of Cloud Accounting on productivity benefit evaluation Table Influence of accountant’s knowledge of Cloud Accounting on 36 evaluation of cost for this application Table Influence of accountant’s knowledge of Cloud Accounting on evaluation of IT infrastructure for this application Table 37 Influence of current IT infrastructure of the entities on„ JO accountants’ valuation of IT infrastructure for applying this 270 application Table 10 Influence of accountant’s knowledge of Cloud Accounting on evaluation of accountants’ resistance for this application Table 11 39 Influence of accountant’s knowledge of Cloud Accounting on 40 evaluation of Confidentiality of data for this application Table 12 Difference between accountants’ knowledge toward cloud 41 accounting to their evaluation on benefit of cloud accounting Table 13 Difference between accountants’ knowledge toward cloud accounting to their evaluation on impact elements of adopting 42 cloud accounting List of Abbreviations Abbreviations Full name AFTA Asean Free Trade Are WTO World Trade Organization IT Information Technology ASEAN Association of Southeast Asian Nations SPSS Statistical Package for the Social Sciences 271 CHAPTER 1: INTRODUCTION 1.1 Research background “Leading companies are utilizing IT upgrades to better manage their data, where to store the data as a means o f becoming more agile, andfinding improved ways to analyse their data and turn information into kftowledge that is actionable, ” said KPMG National Advisory Innovation leader Stephen G Hasty (AccountingWEB Staff, 2012) These days, how to properly manage and handle the data of the customers, partners, or the company itself is still one of the most high priority issues and the majority of enterprises are indeed getting stuck at this obstacle In order to control their database, companies first have to invest and measure various initial costs like hardware, software, networks, administrators, and maintenance Furthermore, they have to estimate the feasibility of systems expansion, upgraded equipment, and data security as well as the availability of the data That is why it is really necessary to have a reliable, advanced technology that can fulfill the firm’s high demands; therefore, they can centralize on their core business activities rather than the IT infrastructures or technology Cloud computing has appearedas the rational “answer” for all these requirements Together with the development o f information technology,the business world is increasingly running with effectiveness and efficiency As an indispensable trend, cloud computing is a cardinal alternative of the high-tech field that ushers business work, and especially accounting, into a new era, with the term “cloud accounting” (Targeted News Service, 2010) In Vietnam, cloud accounting and even cloud computing are still fresh terms which have just come to light in recent years Many domestic enterprises are quite reluctant for two reasons, they actually not know for sure whether to adopt cloud accounting or not; and whether its features will raise costs or benefit them either Up to now, there has been no research on the feasibility of the application nor the pros and cons of accounting on the cloud in Vietnam Hence, the topic “Feasibility application o f cloud accounting in Vietnam” takes this into account to figure out a new future for accounting in Vietnam 272 1.2 Problem statement The majority of enterprises in Vietnam are still doubtful about cloud accounting technology, even with knowledge of cloud computing They wonder about whether this strategic plan can upsurge their business profit with minimal risk or not? (Greg Boyle, 2011) Data leaks and internal information disclosure are what all the organizations really take into top consideration when deciding whether to account in the cloud Although cloud computing has been known in Vietnam in the recent half-decade, this term still brings hesitation and they would rather purchase the main computer processors and hire the technical employees for improving the traditional accounting style rather than approaching the cloud (ITC News, 2011) Unless the accounting work of Vietnam wakes up and makes a change, it will fall out of date and be left behind by other countries, sooner or later As a result, Vietnam entities may own relatively very high cost - current accounting software, equipped with few advanced features, which makes logging-in possible solely in the office, and allows only a small volume of accounting performance It may lead to poor business performance and the whole economy can be affected Underlining the importance of this topic is that Vietnam has been integrated to the knowledgeable and technological global economy by joining AFTA (2003) (FTA, 2012), and the WTO (2006) (WTO’s website, 2012); hence, Vietnam should upgrade and innovate the quality of information technology in business to survive, especially for accounting which is utilized in great depth in every business 1.3 Research questions and objectives Based on the current information technology infrastructures of Vietnam, many companies have the competitive advantage on the account to the cloud computing application, but cloud accounting is still a fresh phrase to all The paperis conducted by answering the three following question: Whether Vietnamese organizations can adapt the cloud accounting into theừ operations or not? What are the costs and benefits of applying the could accounting into the Vietnam entities? 273 How the corporates can approach effectively to the could accounting technology? According to the status quo of the stated research questions above, the paperis highlighted with the following objectives: The first and foremost objective is to bring the cloud accounting in specific and the cloud computing in general to closer to the Vietnam entities The writing will break down the concept of the cloud accounting into more detail with appropriate illustrations in order to make it simply and easy that this cloud scheme can be employed smoothly by any organizations The enterprises are more persuasive by the second objective which figure out the plus as well as the minus side of implementing accounting in the cloud; therefore, it may hard for all the entities to “ignore” the cloud any more The final objective is to give suggestion to the coiporates which guide them how to carry out the could tactic sufficiently in accounting 1.4 Research statement The paper is oriented for the Vietnamese entities to consider for improving of accounting activities by applying the accounting on the cloud Furthermore, the service suppliers of the cloud package may have better strategies to satisfy their customers’ needs and demands It is also a chance for the Vietnamese accountants to have a broader information and knowledge about the modem accounting concept in the information technology era In addition, the government agency may impose the properly regulations and legal corridors to protect the rights and duties for both service providers and users Therefore, the writing is conducted to drawing the plainly future pathway to the likelihood of employing cloud accounting in Vietnam organizations By the way, the pros and cons of this technology will be indicated for the executives to compare and contrast for the right decision making whether to implement or not The suggestion way is also depicted for properly application of cloud accounting into Vietnam firms 1.5 Research structure To make this paper easy for the readers to follow and get familiar with, it is comprised of chapters and each of them has its own specialized functions, purposes and detail parts The paper is structured with the beginning of Chapter which tells the readers the whole ideal about what is going to put the pen on This overall picture is drawn by the 274 combination several parts like research background, problem statement, research questions and objectives, research statement and paper organization The following section is Chapter which provides the needed theory to the issue of cloud accounting under the name “Literature Review” In this case, all the relevant materials are the background information about could computing and especially about accounting on the cloud with its status quo in Vietnam How the paper is designed? What methods are used to collect data? How the obtained data is analysed to become information? What are reasons behind the alternative ways? All the questions would be plainly satisfied under Chapter with naming “Research Methodology” Moving to the “Finding and Discussion” part categorised in Chapter which not only provides the interpretation about the discoveries but also the reasonable debates and suggestions by using the combination of the literature context and the findings All of them will be illustrated and exemplified by appropriately supported figures and examples The final Chapter goes for “Conclusion and Recommendation” which summaries the overall idea of the paper in brief My own personal judgments are also express to show the written evaluation about the research results Any limitations during the finishing time will indicated which is mainly based to give advices for the further research in the coming time Appropriate source of data used will be listed with the manner method in the Reference part and all the detail computations will be depicted as well in the end of this paper 275 Q61 Equal variance 59 286 1.223 s assumed Equal variance s not assumed 1.286 87 225 2316 18938 -.14478 60806 67.00 203 2316 18006 -.12776 59104 Convenience Statistics Q62 N Valid 89 Missing Mean 4.1573 Median 4.0000 Std Deviation 68918 475 Variance Q62 Frequency Percent Cumulative Percent Valid Percent Valid 1.1 1.1 1.1 12 13.5 13.5 14.6 48 53.9 53.9 68.5 28 31.5 31.5 100.0 Total 89 100.0 100.0 T-Test Group Statistics Q62 Std Deviation Mean N Q1 Std Error Mean 59 4.2712 63871 08315 30 3.9333 73968 13505 Iradepemdemt Samples Test Levene's Test for Equality of Variances F Q62 t-test for Ec uality of Means t Sig Equal variance 203 653 2.235 s assumed Equal variance s not assumed 2.130 Mea n Sig Diffe (2- renc df tailed) e Std Error Diffe renc e 95% Confidence Interval of the Difference Lower Upper 87 028 337 151 85 15 03743 63827 51.4 60 038 337 158 85 59 01953 65617 Numbers o f updated features Statistics Q63 N Valid Missing 89 Mean 3.6629 Median 4.0000 Std Deviation 82495 Variance 681 328 Q63 Cumulative Percent Valid Percent Frequency Percent /alid 5.6 5.6 5.6 35 39.3 39.3 44.9 34 38.2 38.2 83.1 15 16.9 16.9 100.0 Total 89 100.0 100.0 T-Test Group Statistics Q63 Std Deviation Mean N Q1 Std Error Mean 59 3.7797 83186 10830 30 3.4333 77385 14129 Independent Samples Test Levene's Test for Equality of Variances F Q63 Sig t-test for Equality of Means t Equal varianc es 090 765 1.900 assume d df 87 Std 95% Confidence Sig Mean Error Interval of the Difference (2- Differe Differe tailed) nee nee Lower Upper 061 34633 18230 -.01602 7086 329 Independent'Samples Test Levene's Test for Equality of Variances F Q63 Sig t-test for Equality of Means t Equal varianc es 090 765 1.900 assume d Equal varianc es not assume d 1.945 df Std 95% Confidence Sig Mean Eưor Interval of the Difference (2- Differe Differe Lower Upper tailed) nee nee 87 061 34633 18230 -.01602 7086 62.33 056 34633 17802 -.00949 7021 Upgrade and expansion Statistics Q64 N Valid Missing 89 Mean 3.6629 Median 4.0000 Std Deviation 90383 Variance 817 Q64 330 Valid Percent Frequency Percent Cumulative Percent 1Valid 10.1 10.1 10.1 29 32.6 32.6 42.7 34 38.2 38.2 80.9 17 19.1 19.1 100.0 Total 89 100.0 100.0 T-Test Group Statistics Q1 Q64 Mean N Std Deviation Std Eưor Mean 59 3.6610 99326 12931 30 3.6667 71116 12984 Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference F Q64 Sig t Equal varianc 6.163 015 -.028 es assume d df 87 Std Mean Error Sig (2- Differ Differe tailed) ence nee Lower Upper 978 0056 20383 4107 3994 Imdepemdent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval of the Difference F Q64 Sig t Equal varianc es 6.163 015 -.028 assume d Equal varianc es not assume -.031 i Z Enhance productivity Statistics Q65 N Valid Missing 89 Mean 3.4831 Median 3.0000 Std Deviation 1Variance 1.01256 1.025 df 87 77.12 Std Mean Eưor Sig (2- Differ Differe nee Lower Upper tailed) ence 978 0056 20383 4107 "5 975 0056 18325 3705 3994 3592 Q65 Valid Percent Frequency Percent Cumulative Percent Valid 15 16.9 16.9 16.9 35 39.3 39.3 56.2 20 22.5 22.5 78.7 19 21.3 21.3 100.0 Total 89 100.0 100.0 T-Test Group Statistics Q1 Q65 Mean N StdJ Deviation Std Error Mean 59 3.4746 95332 12411 30 3.5000 1.13715 20761 Independent Samples Test Levene's “TesTfor” Equality of Variances t-test for Equality of Means Sig Q65 df Equal variance 2.76 100 -.111 assumed Equal variance snot assumed -.105 87 50.22 Std 95% Confidence Sig Mean Eưor Interval of the Difference Differ Differ (2 tailed) ence ence Lower Upper 912 0254 917 0254 2283 -.47927 42843 2418 -.51121 46036 Elements impact to the adoption of Cloud Accounting Descriptive Statistics Minimum Maximum N Mean Std Deviation Q71 89 2.00 5.00 3.65Ĩ7 79916 Q72 89 2.00 5.00 2.8876 97045 Q73 89 2.00 5.00 2.8652 82835 Q74 89 2.00 5.00 4.0674 82293 Valid N (listwise) QQ Cost Statistics Q72 N Valid 89 Missing Mean 2.8876 Median 3.0000 Std Deviation 97045 Variance 942 Q72 Frequency Percent Cumulative Percent Valid Percent Valid 39 43.8 43.8 43.8 29 32.6 32.6 76.4 13 14.6 14.6 91.0 9.0 9.0 100.0 89 100.0 100.0 Total 334 T-Test Group Statistics N Q1 Q71 Mean Std Error Mean Std Deviation 59 3.7458 86290 11234 30 3.4667 62881 11480 Independent Samples Test Levene's Test for Equality of Variances F Q71 Sig t-test for Equality of Means t Equal variance SI 5.036 027 s assumed Equal variance s not assumed 95% Confidence Std Error Interval of the Sig Difference Mean Differe (2tailed) Difference nee Lower Upper df 87 rrzo 727910 “717773 :074T “763235 1.73 76.195 086 27910 16062 0408 59899 IT Infrastructure Statistics Q72 |n Valid I " 89Ị 335 Missing Mean 2.8876 Median 3.0000 Std Deviation 97045 Variance 942 Q72 Valid Percent Frequency Percent Cumulative Percent Valid 39 43.8 43.8 43.8 29 32.6 32.6 76.4 13 14.6 14.6 91.0 9.0 9.0 100.0 89 100.0 Total 100.0 T-Test Group Statistics Q72 Mean N Q1 Std Deviation Std Eưor Mean 59 2.9322 1.03164 13431 30 2.8000 84690 15462 Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means Sig F t Std Sig Mean Eưor (2- Differ Differ df tailed) ence ence 95% Confidence Interval of the Difference Lower Upper Q72 Equal varian ces acQiltn 1.007 31 605 87 547 1322 2184 0 -.30189 56630 645 69.4 91 521 1322 2048 -.27633 54074 ed Equal varian ces not assum ed T-Test Group Statistics Q3 Q72 N Mean Std Deviation Std Error Mean 56 2.8393 98676 13186 33 2.9697 95147 16563 Independent Samples Test Levi:ne's Tesl for Equal ity of Variimces F Q72 Sig t-test for Equality of Means t Equal variance 665 417 -.610 s assumed Equal variance s not _ _ assumed Std 95% Confidence Mean Eưor Interval of the Difference Sig (2- Differe Differ tailed) nee ence Lower Upper df 87 543 -.13041 2137 -.55523 29441 -.616 69.236 540 -.13041 2117 -.55273 29191 337 Accountants’ resistance Statistics Q73 N Valid 89 Missing Mean 2.8652 Median 3.0000 Std Deviation 82835 Variance 686 Q73 Frequency Percent Cumulative Percent Valid Percent Valid 33 37.1 37.1 37.1 39 43.8 43.8 80.9 13 14.6 14.6 95.5 4.5 4.5 100.0 89 100.0 100.0 Total T-Test Group Statistics Q1 Q73 Mean N Std Deviation Std Error Mean 59 2.9153 87667 11413 30 2.7667 72793 13290 Independent Samples Test Levene's Test for E q u a lity of Variance s t-test for Equality of Means Sig F Q73 t df Equal variance 74 107 798 s assumed Equal variance s not assumed 848 Sig (2tailed) Std 95% Confidence Mean Error Interval of the Difference Differ Differ ence ence Lower Upper 87 427 1485 1861 -.22137 51854 68.8 30 399 1485 1751 -.20091 49808 Confidentiality o f data Statistics Q74 N Valid 89 Missing Mean 4.0674 Median 4.0000 Std Deviation 82293 Variance 677 Q74 Frequency Percent Valid Percent Cumulative Percent 339 Valid 4.5 4.5 4.5 15 16.9 16.9 21.3 41 46.1 46.1 67.4 29 32.6 32.6 100.0 Total 89 100.0 100.0 T-TesẺ Group Statistics Q1 Q74 Mean N Std Deviation Std Error Mean 59 4.0000 78784 10257 30 4.2000 88668 16189 Independent Samples Test Levene's Test for Equality of Variance s t-test for Equality o f Means Sig F Q74 t Equal variance 1.45 23 08 s D assumed Equal variance s not assumed 1,04 A 95% ■ Confidence Std Eưor Interval of the Mean Sig Difference (2- Differenc Differenc e Lower upper e df tailed) 87 281 -.20000 18435 5664 16641 52.7 uy 301 -.20000 19164 5844 18444 A Frequencies Statistics Gender N Valid 89Ỉ of Missing Gender Frequency Valid Percent Valid Percent Cumulative Percent 26 29.2 29.2 29.2 63 70.8 70.8 100.0 Total 89 100.0 100.0 ... Cloud Accounting of Vietnamese enterprises in future 24 Classify of accountant whose company won't adopt Cloud Accounting to the application of Vietnam 25 Application of Cloud Accounting in Vietnam. .. Classify of accountants who believed in future of cloud accounting in Vietnam 27 Classify of accountants who did not believe in future of cloud accounting in Vietnam 28 Cost reduction of Cloud Accounting. .. Accounting Gender of Accountants who don't know Cloud Accounting 17 Gender of Accountants in Vietnam 18 Current level of Cloud accounting in Vietnamese entities 19 Types of entities apply Cloud Accounting