ACCOUNTING OUTSOURCING SERVICES FROM THE PERSPECTIVES OF TRANSACTION COST ECONOMIES: A STUDY IN KAZAKHSTAN

Abstract

The purpose of this study is to understand the effects of accounting outsourcing services on transaction costs and operating expenses of SMEs in Kazakhstan.  Semi-structured interviews were used to collect data from people who either work for an accounting outsourcing firm or a firm that receives accounting outsourcing services. Thematic analysis’ results reveal that accounting outsourcing services would benefit firms basically in two aspects. They are operational cost savings and digitalization. Besides, risks associated with accounting outsourcing services have been revealed such as the dissemination of confidential information. Theoretical and practical implications are discussed. Finally, limitations and directions for future research are also presented.