engleski

Possibilities and Limitations of Accounting Externalization

One of primary company’s concerns in modern business conditions is cost reduction and the rationalization of business processes. Hence, today more than ever the question, whether is necessary, possible and cost effective to perform all business functions as a part of a company’s organisational structure, arises. There are many areas of work that can be outsourced, however, the previous research results and practice show that the outsourcing of accounting function is the most common form of outsourcing. The fundamental research question of the paper is whether and to what extent companies benefit from the externalization of accounting services. Authors will, applying appropriate scientific methods (synthesis, analysis, comparison, classification, inductive, deductive method, etc.) explore the factors which directly or indirectly influence the decision for outsourcing the accounting function. Furthermore, the paper will give an overview of most commonly externalized accounting tasks and authors will argue the reasons for their externalisation. Considerable attention will be placed on identifying the potential risks associated with outsourcing. For example, there is a risk of losing control over business operations in a situation where a very sensitive part of the business is performed by accounting firms. The role and responsibility of accounting firms in ensuring the relevant information for decision making processes will be taken into the consideration, as well. The appropriate and sufficient level of accounting firms engagement in generating management accounting reports based on real business records and their responsibility in performing such tasks, will be a part of the research examination. Moreover, the role of accounting firms in preparation of the budget and their impact on business decision making process will be discussed too. Last but not least, the paper will discuss accounting information users’ satisfaction with the quality level of the services they are receiving from accounting firms.

accounting; outsourcing; benefits; limitations; accounting firm; management

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