Unpacking The Decision: Why Firms Outsource Their Accounting Function?

Abstract

This study aims to identify the key determinants influencing firms’ decisions to outsource accounting functions. Employing the Systematic Literature Review (SLR) method, data were retrieved from the Google Scholar database, encompassing publications from 2015 to 2025. During the identification stage, 1,090 articles related to accounting outsourcing were collected, then after applying inclusion and exclusion criteria, 25 studies were retained for detailed analysis. The review indicates that micro, small, and medium-sized enterprises (MSMEs) commonly outsource services such as financial reporting, management accounting, tax consulting, and internal auditing. The most prominent motivations include a lack of professional expertise and technological limitations, and trust which align with the Transaction Cost Economics (TCE), Resource-Based View (RBV) theory, Technology Acceptance Model (TAM), Unified Theory of Acceptance and Use of Technology (UTAUT). Overall, the findings enhance the understanding of how technological, organizational, environment, and behavioral factors can shape outsourcing decisions collectively. The implications suggest that researchers should refine outsourcing models, practitioners can optimize partnerships through technology and trust, and policymakers need to strengthen MSME digital capacity while ensuring professional service standards to promote transparency and efficiency