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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| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Published: |
2013
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| 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. |
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