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Outsourcing Of Accounting Services In Digital Age

Author

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  • Adrian ISIP

Abstract

Accounting function deals with recording, reporting and advising activities. In general, larger companies do not outsource routine tasks, since they need accounting information for making decisions more often than smaller enterprises, that outsource accounting primarily to fulfil their legal obligations. Digitalization facilitates remote access to data, electronic data exchange, instant communication and automatic data processing. This paper investigates outsourcing of accounting services in digital age considering several collaboration arrangements. We mobilized transaction costs economics and resource-based view as theoretical framework, accounting services market from Romania as context and case study as research method involving 3 accounting firms. Our results indicated that clients' decisions to insource, outsource or co-source the accounting services depend on the availability of internal and external professionals, their costs, frequency of information need and technology readiness. Accounting process means to receive documents from clients, process data from documents based on the agreed terms, prepare and submit the reports to clients. Technologies like robotic process automation and artificial intelligence ensure faster data processing, accurate information and prompt reactions. Nowadays more large companies could outsource their accounting due to e-invoice system and cloud technology. Having in view the clients' demands, accounting firms can deliver on-site, hybrid or remote services. Our study has implications for accounting firms and their clients and we presented what opportunities they have in digital age for collaboration. Our contribution was to show that e-invoice system and digital technologies enhance the provision of remote services and accounting firms could also target larger companies as clients.

Suggested Citation

  • Adrian ISIP, 2024. "Outsourcing Of Accounting Services In Digital Age," Eastern European Journal for Regional Studies (EEJRS), Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM), vol. 10(2), pages 43-61, December.
    • Handle: RePEc:aem:journl:v:10:y:2024:i:2:p:43-61
    DOI: https://doi.org/10.53486/2537-6179.10-2.04
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    References listed on IDEAS

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    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
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    More about this item

    Keywords

    external accountants; accounting activities; outsourcing reasons; digital communication; remote services; task automation; real-time reporting;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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