Adoption of financial and accounting services outsourcing among small medium entreprises

Third Party Service (TPS) outsourcing has been an integral part of firms’ strategy operations in view of the limited resources and capabilities particularly for the small and medium enterprises (SMEs). TPS outsourcing include the adoption of financial and accounting services outsourcing (FAO) from t...

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Bibliographic Details
Main Authors: Ramin, Ahmad Kaseri, Wan Yusoff, Wan Fauziah, Nasir, Noreina Kepal
Format: Conference or Workshop Item
Published: 2013
Subjects:
Online Access:http://eprints.uthm.edu.my/5037/
http://eprints.uthm.edu.my/5037/1/Adoption_Of_Financial_And_Accounting_Services.pdf
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Summary:Third Party Service (TPS) outsourcing has been an integral part of firms’ strategy operations in view of the limited resources and capabilities particularly for the small and medium enterprises (SMEs). TPS outsourcing include the adoption of financial and accounting services outsourcing (FAO) from third party instead of having internal financial and accounting operations. Despite the importance of financial and accounting function in any business operation, the least resources were normally allocated to this function as compared to other operations such as production and marketing. The study was aimed to identify the types of FAO activities and factors influence the adoption of FAO among SMEs. Questionnaires were used as the instrument for data collection and a total of 90 SMEs were participated in the study. Descriptive analysis was performed to identify the types of FAO adopted and factors considered by SMEs to adopt FAO. The study found that the general accounting and taxation were the most two functions commonly outsourced by the respondents whilst budgeting and management reporting were the least functions outsourced to third party. The other findings revealed that accessibility to external skills expert services and competencies were the main factor for adoption of FAO among SMEs.