The accounting industry has experienced a substantial transformation from manual bookkeeping of ledgers and trial balances to advanced accounting software. Many accounting firms, though, use accounting software with standalone packages which do not support the web. As a result, accounting firms demanded integrated software which could manage overall business management system. Accounting firms rely on software advancements in technology and specialised accounting software that can help financial activities like accounts, administrative tasks, payroll, tax and sales systems with fewer complexities. Real time information gave rise to the demand for accounting services which have higher accessibility of cloud-based software applications. The adoption of cloud accounting applications for accounting firms at accelerating speed leads to the question of considering the impact of cloud accounting software which has effects on the operational expenses of accounting firms. This research examines what encourages small accounting firms to grasp cloud accounting. The qualitative method of collecting data of small accounting firms was done through the distribution of questionnaires that use cloud accounting software. Findings from this research were used to understand the impact of employee training and IT costs which firms face by implementing cloud based accounting. The firms in this research have majorly agreed that they experienced overall increase in their operational costs. As a result, organisational efficiency was also increased. The recommendations provided by the researchers point to a similar study to find out the impact of profitability on firms from implementing cloud software and suggest to firms how to use cloud software to expand their client base.