This study explores why small and medium-sized companies (SMEs) engage in outsourcing of accounting services. We expand … for personal characteristics of the SME executive (age, education), organizational structure, firm maturity and ownership … structure. We find that resource deficit, asset specificity and frequency are the most significant drivers of outsourcing …

significant. The evidence shows that outsourcing of accounting tasks such as the preparation of the statutory financial statements … accounting tasks and firms that perform these tasks internally. Using accruals quality as a measure for the financial reporting … to the decision of purchasing accounting services from an external service provider. This result is also economically …