IDEAS home Printed from https://ideas.repec.org/a/aem/journl/v10y2024i2p43-61.html

Outsourcing Of Accounting Services In Digital Age

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://csei.ase.md/journal/files/issue_102/EEJRS_Issue10.2_page-43-61.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.53486/2537-6179.10-2.04?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bianca Polenzani & Andrea Marchini, 2022. "Does the Covid-19 affect food consumption patterns? A Transaction Cost Perspective," Economia agro-alimentare, FrancoAngeli Editore, vol. 24(2), pages 1-28.
    2. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    3. Prpić, John, 2017. "The Theory of Crowd Capital," SocArXiv s6vnw, Center for Open Science.
    4. Suvrat Dhanorkar & Karen Donohue & Kevin Linderman, 2021. "Online Business-to-Business Markets for Industrial Product Reuse: Evidence from an Operational Policy Change," Manufacturing & Service Operations Management, INFORMS, vol. 23(6), pages 1373-1397, November.
    5. Cirera, Xavi & Comin, Diego & Cruz, Marcio, 2025. "Technology Sophistication Across Establishments," CEPR Discussion Papers 19865, Centre for Economic Policy Research.
    6. Mariani, Marcello M. & Fosso Wamba, Samuel, 2020. "Exploring how consumer goods companies innovate in the digital age: The role of big data analytics companies," Journal of Business Research, Elsevier, vol. 121(C), pages 338-352.
    7. Alfonso Vargas Sánchez, 2004. "Empresas cooperativas, ventaja competitiva y tecnologías de la información," CIRIEC-España, revista de economía pública, social y cooperativa, CIRIEC-España, issue 49, pages 13-29, August.
    8. Jagjit Singh Srai & Nitin Joglekar & Naoum Tsolakis & Sandeep Kapur, 2022. "Interplay between Competing and Coexisting Policy Regimens within Supply Chain Configurations," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 457-477, February.
    9. Miguel Espinosa, 2021. "Labor Boundaries and Skills: The Case of Lobbyists," Management Science, INFORMS, vol. 67(3), pages 1586-1607, March.
    10. Hayward, Mathew & Hunt, Richard & Miller, Danny, 2022. "How vulnerability enriches family firm relationships: A social exchange perspective," Journal of Family Business Strategy, Elsevier, vol. 13(1).
    11. Matthew W. McCarter & Shirli Kopelman & Thomas A. Turk & Candace E. Ybarra, 2012. "Too Many Cooks Spoil the Broth: How the tragedy of the anticommons emerges in organizations," Working Papers 12-14, Chapman University, Economic Science Institute.
    12. Markus Groth, 2005. "Auctions in an outcome-based payment scheme to reward ecological services in agriculture – Conception, implementation and results," ERSA conference papers ersa05p180, European Regional Science Association.
    13. Trautmann, Gerhard & Bals, Lydia & Hartmann, Evi, 2009. "Global sourcing in integrated network structures: The case of hybrid purchasing organizations," Journal of International Management, Elsevier, vol. 15(2), pages 194-208, June.
    14. Erica L. Plambeck & Terry A. Taylor, 2005. "Sell the Plant? The Impact of Contract Manufacturing on Innovation, Capacity, and Profitability," Management Science, INFORMS, vol. 51(1), pages 133-150, January.
    15. Olga Chkanikova, 2016. "Sustainable Purchasing in Food Retailing: Interorganizational Relationship Management to Green Product Supply," Business Strategy and the Environment, Wiley Blackwell, vol. 25(7), pages 478-494, November.
    16. Davis, Lewis S., 2006. "Growing apart: The division of labor and the breakdown of informal institutions," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 75-91, March.
    17. Andreou, Panayiotis C. & Louca, Christodoulos & Panayides, Photis M., 2012. "Valuation effects of mergers and acquisitions in freight transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1221-1234.
    18. Vanteeva, Nadia, 2016. "In the absence of private property rights: Political control and state corporatism during Putin's first tenure," Russian Journal of Economics, Elsevier, vol. 2(1), pages 41-55.
    19. Guocai Chen & Tongying Liang & Xiude Chen, 2025. "Tilt Toward Exploration: How Does Firms' Innovation Openness Affect Exploratory Innovation Tendency?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(8), pages 4347-4361, December.
    20. Pietro Cunha Dolci & Antonio Carlos Gastaud Maçada, 2014. "Information technology investments and supply chain governance," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 18(2), pages 217-235.

    More about this item

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aem:journl:v:10:y:2024:i:2:p:43-61. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Rodica CRUDU (email available below). General contact details of provider: https://edirc.repec.org/data/acecsmd.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.