OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGE

ccounting 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 obligati...

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Main Author: Adrian ISIP
Format: Article
Language:English
Published: Academy of Economic Studies of Moldova (AESM), Center for Studies in European Integration 2024-12-01
Series:Eastern European Journal of Regional Studies
Subjects:
Online Access:https://csei.ase.md/journal/files/issue_102/EEJRS_Issue10.2_page-43-61.pdf
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author Adrian ISIP
author_facet Adrian ISIP
author_sort Adrian ISIP
collection DOAJ
description ccounting 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.
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spelling doaj-art-2d5668e9611644ff91161435155e2e712025-08-20T02:53:09ZengAcademy of Economic Studies of Moldova (AESM), Center for Studies in European IntegrationEastern European Journal of Regional Studies1857-436X2537-61792024-12-01102436110.53486/2537-6179.10-2.04OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGEAdrian ISIP0https://orcid.org/0000-0002-4136-6549Bucharest University of Economic Studies,ccounting 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.https://csei.ase.md/journal/files/issue_102/EEJRS_Issue10.2_page-43-61.pdfexternal accountantsaccounting activitiesoutsourcing reasonsdigital communicationremote servicestask automationreal-time reporting
spellingShingle Adrian ISIP
OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGE
Eastern European Journal of Regional Studies
external accountants
accounting activities
outsourcing reasons
digital communication
remote services
task automation
real-time reporting
title OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGE
title_full OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGE
title_fullStr OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGE
title_full_unstemmed OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGE
title_short OUTSOURCING OF ACCOUNTING SERVICES IN DIGITAL AGE
title_sort outsourcing of accounting services in digital age
topic external accountants
accounting activities
outsourcing reasons
digital communication
remote services
task automation
real-time reporting
url https://csei.ase.md/journal/files/issue_102/EEJRS_Issue10.2_page-43-61.pdf
work_keys_str_mv AT adrianisip outsourcingofaccountingservicesindigitalage