THE IMPORTANCE OF OUTSOURCING FOR ACCOUNTING IN MEDIUM AND SMALL BUSINESSES

Abstract

The article is devoted to the study of the feasibility of using outsourcing for accounting by small and medium-sized businesses. Small and medium-sized businesses have such features as limited financial resources, a small staff, and high dependence on factors of the external market environment. This, on the one hand, necessitates the timely receipt of relevant accounting information for quick and effective management decision-making, and on the other hand, it is necessary to find ways to reduce costs and increase the level of competitiveness and profitability. The article reveals the idea that outsourcing accounting is an effective tool for improving the quality of accounting information and optimizing costs, which is of urgent importance for small and medium-sized businesses. The purpose of the article is a comprehensive study of the importance of outsourcing for organizing accounting for small and medium-sized businesses, determining its economic role, revealing advantages, risks, and development prospects. During the study, an analysis of classical approaches and recent publications on the specified issues was made. The historical aspect of the development of outsourcing in world practice and the popularization of the concept of focusing business on its core activities in the modern environment are revealed. The regulation of outsourcing services in Ukraine at the legislative level is shown. The types of outsourcing are studied depending on the tasks that enterprises can delegate to performers. The cases when enterprises benefit from outsourcing are indicated. The advantages of outsourcing accounting for small and medium-sized businesses are carefully described and they are grouped according to the following classifiers: economic, technological and managerial. It is noted that despite the advantages, this form of cooperation is accompanied by a number of risks. The classification of risks for the customer enterprise and for the outsourcer is made and common risks are shown. Ways to minimize risks for both parties are also revealed. The prospects for the development of accounting outsourcing for small and medium-sized businesses are noted, taking into account the growing role of digitalization, artificial intelligence, expanding the range of financial services, integrating accounting with financial consulting, and developing international outsourcing.