Revista de Pesquisa de Economia

Factors Influencing the Intention of Accounting Outsourcing: The Case of Vietnam

Oanh LTT, Ngoc BT and Tran Manh Dung TM

Along with the rapid development of technology, specialization through outsourcing is one of the current trends. Outsourcing is a useful solution allowing executives to focus on core business activities, reducing costs, and enhancing business efficiency. Whereby, choosing professional providers of accounting service ensuring high quality as well as bringing many benefits is one of the major concerns of the CEO. The purpose of the study is to explore factors influencing the intention to outsource accounting instead of recruiting accountants of the enterprise executives who are outsourcing accounting in Vietnam. We received 181 valid responses from survey, in which, 94 outsourced accounting services. The initial model was proposed with five factors including specificity of accounting tasks, environmental uncertainty, behavioural uncertainty, frequency of accounting transactions and trust in service providers. The analysis proved that only specificity of accounting task and the accounting behavioural uncertainty are statistically significant and have impact on the intention to outsource accounting services of the executives. The complexity in business activities of enterprises, higher demand for information of managers will lead to stronger intention of accounting outsourcing. The behavioural uncertainty of internal accounting will increase the intention of accounting outsourcing due to suspicion of honest, sufficient, and timely provision of information from internal accountants.