The accounting profession experienced a significant revolution when paper-based practices, such as manual bookkeeping of ledgers and trial balances, shifted to the use of specialised accounting software. However, most of the accounting software used by accounting firms were standalone packages that were not supported by the Web; therefore the demand from accounting firms for an integrated software that could act more like an overall business management system which could cater for various financial activities such as accounts, tax, payroll, administrative tasks and point of sales systems emerged. The demand for having a single integrated platform for all accounting services with greater accessibility to real time information gave rise to cloud based accounting software applications. The accelerating speed at which accounting firms are adopting cloud accounting software leads us to the primary research question of understanding the effects the introduction of cloud accounting software has on the operational cost of accounting firms. This study also aims to investigate the factors that motivate small accounting firms to embrace cloud technology. The primary method for data collection was through the distribution of questionnaires to 6 Small Accounting firms in Hamilton who have adopted the use of cloud accounting software. The researcher was able to gather some interesting findings from this study, in terms of understanding the effect of staff training and information technology costs that Accounting firms are faced with through the implementation of cloud accounting software. The majority of firms in this study agreed that they have experienced an overall increase in their operational costs, but believe that there has been an increase in their general organisational efficiency.