The Outsourcing of Financial Accounting and its Impact on Business Performance

Ing. Martin Křížek, DiS.

Bachelor's thesis

Abstract:

The main thesis topic is related to the outsourcing of financial accounting operations, the trend which grows, as business companies look for effective ways to reduce costs and relocate labor for core-competency tasks. The main goal of this thesis is to answer whether accounting should be outsourced and, if yes, how it will influence a company’s business performance. This thesis will be divided into two main parts; theory, and a case study of a real outsourcing project. The theory defines economics environment on which outsourcing functions; presents instruments which allow its execution and implementation; defines hypothesis. The case study chronologically presents collected information; analyses and revises them. The deductive approach will be used in the first three chapters. The inductive method will be applied to the collected and selected data of the business outsourcing project. The overall findings are that outsourcing of accounting tasks helps to focus on core competencies, contracting away non-core activities. Also to succeed, time schedule, plan and its implementation have to be developed under conditions which serve the purpose of the outsourcing action to decrease costs and improve quality over services.

Abstract:

The main thesis topic is related to the outsourcing of financial accounting operations, the trend which grows, as business companies look for effective ways to reduce costs and relocate labor for core-competency tasks. The main goal of this thesis is to answer whether accounting should be outsourced and, if yes, how it will influence a company’s business performance. This thesis will be divided into two main parts; theory, and a case study of a real outsourcing project. The theory defines economics environment on which outsourcing functions; presents instruments which allow its execution and implementation; defines hypothesis. The case study chronologically presents collected information; analyses and revises them. The deductive approach will be used in the first three chapters. The inductive method will be applied to the collected and selected data of the business outsourcing project. The overall findings are that outsourcing of accounting tasks helps to focus on core competencies, contracting away non-core activities. Also to succeed, time schedule, plan and its implementation have to be developed under conditions which serve the purpose of the outsourcing action to decrease costs and improve quality over services.

Keywords

Outsourcing of Accounting Services Transaction Cost Economics theory (TCE) Resource Based View theory (RBV) Core Competencies, Non-Core Competencies Impact on Business Performance and Firm Value Outsourcer / Client, Provider / Outsourcee Case study

Language used: English

Date on which the thesis was submitted / produced: 29. 4. 2015

Thesis defence

• Date of defence: 22. 6. 2015
• Supervisor: MBA Jiří Vicek
• Reader: Ing. Eva Cipovová, Ph.D.

University of Finance and Administration

Bachelor programme / field:
Economics and Management / Business Management and Corporate Finance