ShodhPatra: International Journal of Science and Humanities

Cloud Accounting and Digital Transformation: A Conceptual Framework for Business Sustainability

ABSTRACT Modern organizational survival is increasingly contingent upon the strategic calibration of digital innovation and sustainable practice. Cloud accounting has transitioned from a back-office utility to a primary driver of digital transformation, offering real-time data transparency and cost-efficiency. However, a critical gap exists in understanding how these technological shifts translate into long-term environmental, social, and economic sustainability. This paper synthesizes the Technology–Organization–Environment framework, Resource-Based View, and Dynamic Capability Theory to conceptualize cloud accounting as a strategic asset. By integrating empirical evidence on cost-saving metrics and adoption barriers, the study moves beyond descriptive accounts to provide a critical framework. The study propose six research propositions that position digital transformation as a mediator between technological adoption and sustainable performance. The analysis offers a roadmap for practitioners to navigate the tensions between operational agility and rigorous ESG requirements. Keywords: cloud accounting, digital transformation, business sustainability, accounting innovation, cloud computing, ESG reporting