Abstract:

The phenomenon of outsourcing has engulfed the accounting industry and offers a wide range of services from bookkeeping, accounts payable, debt collection, invoicing, to tax return preparation.  As companies become more comfortable with the services provided by outsourcing facilitators, the level of outsourcing in the accounting industry will increase to allow U.S. firms to focus on higher margin services and meet client demands in more technical areas of tax, estate, and retirement planning. Through a survey and data collection primarily focused on three areas: outsourcing drivers, concerns stakeholders have about outsourcing, and the perceptions about the offshorability of specific functions, the study concludes that firms are engaging in outsourcing activities, and that those firms who do outsource work realize benefits in and ease their perceptions about doing so. Firms who outsource have been able to cut costs and increase staff. These same firms also are less concerned about most of the issues (privacy, client relationships, etc) which may be as a result their outsourcing activities. The firms also have a higher perception of the outsourcibility of most of the functions in the accounting industry. The study further suggests policy implications concerning all stakeholders in the accounting industry: students, professors, accounting professionals and firms, regulatory bodies, and politicians.