Accounting Services Outsourcing: Advantages & Disadvantages

This report provides a comprehensive analysis of the advantages and disadvantages of outsourcing accounting services, specifically within the Australian business environment. The report begins with an introduction highlighting the importance of accounting in maintaining financial stability and revenue generation. It then outlines the project's objectives, which include understanding the effectiveness and limitations of outsourcing, identifying the reasons for conducting accounting services, and recognizing the motivations behind accounting practices in Australia. A thorough literature review examines the requirements of accounting services across various sectors, the advantages and disadvantages of outsourcing, and the benefits of outsourcing accounting services in the Australian context. The research employs both qualitative and quantitative methodologies, including secondary data analysis and questionnaires, to gather and analyze relevant information. The report addresses key research questions, such as the advantages and disadvantages of outsourcing in Australia, and concludes with a discussion of the findings, limitations, and implications of the study.

Running head: ADVANTAGES AND DISADVANTAGES OF OUTSOURCING
ACCOUNTING SERVICES
Advantages and Disadvantages of Outsourcing Accounting Services in Australia
Name of the University:
Name of the Student:
Authors Note:

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SERVICES
Table of Contents
1. Introduction......................................................................................................................3
2. Project Objective.............................................................................................................3
3. Project Scope...................................................................................................................4
4. Literature Review............................................................................................................4
4.1. Accounting Service Requirement in Different Sector and its Advantages and
Disadvantages..............................................................................................................................4
4.2. Advantages of Outsourcing Practice in Australia.....................................................5
4.3. Disadvantages and Effectiveness of Outsourcing Activities....................................5
4.4. Advantages of Outsourcing Accounting Service Practice in Australian Business
Environment................................................................................................................................6
5. Research Questions/ Hypotheses.....................................................................................7
5.1. Primary Question......................................................................................................7
5.2. Secondary Questions................................................................................................7
6. Research Design and Methodology.................................................................................7
6.1. Qualitative Research.................................................................................................7
6.2. Quantitative Research...............................................................................................8
7. Research Limitations.....................................................................................................10
8. Time Schedule...............................................................................................................11
9. Conclusion.....................................................................................................................12

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ADVANTAGES AND DISADVANTAGES OF OUTSOURCING ACCOUNTING
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Reference List....................................................................................................................13
Appendix............................................................................................................................15

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ADVANTAGES AND DISADVANTAGES OF OUTSOURCING ACCOUNTING
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1. Introduction
In the current business environment the accounting department offers a scope in order to
maintain book of expenditure along with earning for recognizing the likely loss or profit
(Asatiani et al. 2014). The huge task processes are controlled by a group of people those have
better skills in preparing the book for the entire private as well as public sector. Implementation
of outsourcing decreases the scope for domestic market in order to enhance business
environment of an organization. In addition, accounting service is observed as a vital activity
within a business that facilitates in sustaining financial stability along with regulating revenue
earnings in a better manner (Bangemann 2017). Financial resource facilitates a nation to secure
its favorable surrounding for addressing the requirements of different individual classes.
Considering the same, this research has the objective to explain the advantages and
disadvantages of outsourcing practice within Australia.
2. Project Objective
Objective of a research is a vital aspect which offers a better guideline to attain the aim of
the exploration. In the current research the Australian environment is centered on in order to
measure the advantages and disadvantages of accounting services from the company to other
nations (Schniederjans, Schniederjans and Schniederjans 2015). For this reason, in order to carry
out this research the following research objectives are set:
 To understand the effectiveness and business limitations of Australia within the business
environment
 To recognize the reasons of conducting accounting services within Australia

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 To identify the reasons for which accounting practices are carried out in Australia
3. Project Scope
The scope of the research is focused on analyzing the advantages as well as
disadvantages of employing accounting services within Australia. Moreover, this is also deemed
to have several possibilities to provide a wide base of future researches in order to explain the
view of the researcher within the exploration (Sampaio and Bernardino 2016). There are certain
implications of this research focused on the outsourcing concept along with its implementation
within distinct sectors. In addition, the research will also explain the effect of outsourcing
accounting services along with the related service level available on distinct nations will
facilitate in developing general knowledge on this subject.
4. Literature Review
4.1. Accounting Service Requirement in Different Sector and its Advantages and
Disadvantages
According to Wang and Zhou (2016) there are several reasons that necessitate
requirements of accounting services in distinct business sector. Recently, taken and skill within
organizations encompass chances of success which can improve the management potentially. In
contrast, Cullinan and Zheng (2015) explained that relationship among money and time within
finance administration that enhances performance of companies that impacts the success of the
businesses. Considering sectors of health care and banking along with manufacturing to retail
industries in every place, the accounting requirement facilitates the organizations to offer
upgraded services. Accounting calculation relies on accounting formula along with better

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illustration of balance sheet. Twos makes sure of the ultimate company’s growth followed by its
everyday activities. In contrast, Chaplin (2017) financial support within a business matters in a
great manner that facilitates in stock improvement of a company. Accounting also facilitates in
determining the possible funds to carry out supporting activity in an emergency case for retaining
the sustainability of a company. These researchers also stated that in all business marketing plan
is relied on the finance capability and this can be recognized through accounting process.
4.2. Advantages of Outsourcing Practice in Australia
Schniederjans, Schniederjans and Schniederjans (2015) stated that outsourcing is termed
as a technique that improves operations of organizations through balancing the structure of
potentiality and efficient of services and products. Outsourcing is practiced by the organization
to attain budget service or products from other nation to fulfill the objectives. Cullinan and
Zheng (2015) stated that budget collection for the services and products by means of accounting
service outsourcing impacts the company’s revenue along with attaining expected profitability.
These researchers also stated that in Australia product prices along with manufacturing cost
remains increased in compassion to developing nations. Chaplin (2017) indicated that
outsourcing supports risk mitigation as absence of manufacturing environment along with
capability to deal with human resource increases to ensure quality manufacturing practice.
Cullinan and Zheng (2015) explained that for maintaining a relationship with the companies of
other nations, outsourcing facilitates in attaining the anticipated objectives for the business
practice success. It has also been observed that task delegation to other companies through the
help of outsourcing process enhances scope of companies to enhance profitability of companies
through improving their potentiality.

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4.3. Disadvantages and Effectiveness of Outsourcing Activities
Schniederjans, Schniederjans and Schniederjans (2015) stated that an advantage that
outsourcing offers to the companies is focused on a specific matter that impacts them to take into
account the skills in the companies for promoting the potentiality. These researchers stated that
existence of effective skills enhances the cost effective production that is gathered by the
companies. Project work simplification has been possible through outsourcing activities.
However, Wang and Zhou (2016) indicated that in such scenario, the organizations are not that
able to focus on more than two distinct management types related with production activities.
There are certain other risks associated with outsourcing for the reason that the overall
organizational loses its control over the overall project which leads to intervention of other
companies in the specific project. Cullinan and Zheng (2015) stated another issue related with
outsourcing that results in loss of outsourced materials at the time of translation. It is therefore
deemed that batter of practice can be harmful in destroying the overall setting from several
aspects. Schniederjans, Schniederjans and Schniederjans (2015) also added that disadvantages of
outsourcing process increases the obstruction within business activities from a different angle.
4.4. Advantages of Outsourcing Accounting Service Practice in Australian Business
Environment
Chaplin (2017) evidenced that Australia has a potential business environment that carries
out advanced business practice culture for attaining increased profitability. Based on the
economic and political Australian surrounding fluent individual interaction persuades the
organization to carry out outsourcing. Wang and Zhou (2016) elaborated that Australian
accounting service is highly expensive due to the exceptional capabilities of accountants. In
addition, the need of accounting by a company is at times not that able to afford necessary

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accounting services. Simple accounting method along with book keeping implements cost
effective manner inducing the scope of a company for decreasing the unnecessary expenditure.
Chaplin (2017) indicated that the trend of accounting services outsourcing within Australia leads
in situation downturn regarding utilization of domestic accounting services. These researchers
also elaborated that experience, knowledge along with critical situation dealing feature are
effectively found by means of outsourced accounting practice. Wang and Zhou (2016) explained
that experience, knowledge and accounting practices are needed for various purposes within a
company to attain expectation level.
5. Research Questions/ Hypotheses
5.1. Primary Question
The primary question that will be addressed after completion of this research is:
 What are the advantages and disadvantages of outsourcing practice in Australia?
5.2. Secondary Questions
The secondary questions those are to be answered through accomplishment of the current
research are explained below:
 What are the effectiveness and business limitations of accounting services outsourcing
Australia within the business environment?
 What are the reasons of conducting accounting services within Australia?
 What are the reasons for which accounting practices are carried out in Australia?

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6. Research Design and Methodology
6.1. Qualitative Research
 Method of Data Collection- Qualitative data will be gathered through proper use of
secondary sources. Secondary data regarding advantages and disadvantages of accounting
services outsourcing will be gathered from relevant sources (Cullinan and Zheng 2015).
These secondary sources include books, journals, company websites and annual reports
having data on accounting services outsourcing activities of Australian organizations.
This qualitative research method is used in this research as this has the ability to facilitate
the researchers to access the feelings of the research participants. In this type of research
the participants can share their experiences for attaining constructive viewpoints in
generating suitable research outcome.
 Research Variables- The research variables of this study is segmented into dependent
and independent variables and the relationship among them will be analyzed.
Effectiveness of accounting services outsourcing in Australian organizations is the
dependent variable. Independent variables are advantages of employing accounting
services outsourcing and disadvantages of employing accounting services outsourcing by
Australian organizations (Dinu 2015). These variables are selected in analyzing the
relationship among them that can further explain the positive or negative impacts of
outsourcing accounting activities in the organization.
6.2. Quantitative Research
 Quantitative Research Design- This research design is considered suitable for this
research on advantages and disadvantages of accounting services outsourcing conducts
by Australian organizations. Larger sample size will be selected in the research that

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indicates suitability of quantitative research design. This might also facilitate in attaining
important information on human perception based implications based on specific research
data (Christensen and Kent 2016). This research design is employed in this research for
the reason that it can facilitate in determining the ways in which employees undertake
certain behaviors. This method will also focus on objective measurements along with
carrying out numerical and statistical analysis through questionnaires. This can also
facilitate in attaining constructive findings by means of analyzing statistical data gathered
on accounting services outsourcing impact on organizations.
 Research Instrument- Questionnaire instrument will be implemented in this research for
obtaining relevant data from survey participants. Data gathered will facilitate in analyzing
their viewpoints on the advantages and disadvantages faced by their organizations after
outsourcing accounting services. Close and open ended questionnaire will be prepared
and this is an effective instrument in obtaining effective information from a huge
population (Höglund and Sundvik 2016). The questionnaire will be provided to
respondents through personalized e-mail. Questionnaire research instrument is deemed to
be suitable to use in this research for the reason that it includes a series of questions in
order to attain information relevant to outsourcing accounting activities along with
designing statistical analysis of the responses.
 Process of Data Analysis- Suitable statistical techniques will be employed in analyzing
the data that is gathered from implementing the questionnaire research instrument.
Application of MS excel will be used in evaluating the responses collected from the
survey. Correlation and regression analysis will be conducted for answering the questions
set in this exploration. Representation of the analyzed data will be done through graphs

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and tables which can facilitate in evaluating collected human responses in a better
manner (Lacity and Willcocks 2017).
 Reliability and Validity of Research- Data reliability and validity can be maintained in
making sure that the researcher has collected valid data from recently updated secondary
sources. Additionally, Pearson correlation test will be carried out in analyzing the data
gathered from correlation and regression analysis (Liu and Tyagi 2017).
 Sampling and Sample Size- Process of simple random sampling will be followed in this
study regarding advantages and disadvantages of outsourcing accounting services within
Australian organizations. This sampling technique is deemed to be suitable in this
research as this provides equal opportunities for all the survey participants to take part
within the survey process (Liu 2017). Sample size of 61 managers from selected
Australian organizations is selected in analyzing the responses gathered from the target
respondents. In this sampling technique a subset of statistical population has an equal
chance for all the individuals to get selected. This sampling technique is easy to employ
for the reason that it is carried out in a single step with each subject selected
independently from other members of the survey population.
 Questionnaire Design- The questionnaire that is to be answered by selected respondents
will have design of having close and open ended questions. The first section of the
questionnaire will contain questions concerning the demographic profile of the survey
participants. Second section of the questionnaire will have questions regarding selected
companies outsourcing accounting services and their viewpoints on their effectiveness
(Liu, Jayaraman and Luo 2017). The third section of the questionnaire will have

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questions regarding advantages and disadvantages on using accounting services
accounting outsourcing within the organizations.
7. Research Limitations
The primary data will be gathered from managers of selected Australian organizations
and considering the same, the reliability of the information serves as major restraint which
generates obstacle between the research results and attainment of research objectives (Chaplin
2017). The researcher might deal with such issue of recognizing issues and along with
recommendations to deal with them. This is because of the reason that the selected professions
can be biased towards the company and can just provide positive image of companies through
not disclosing major issues faced by the companies.
8. Time Schedule
Task Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Selection of topic
and search for
justification
Constructing
literature
Selecting
appropriate
methods
Data collection