Advantages and disadvantages of outsourcing accounting worldwide and in Latvia

Abstract

. The accounting outsourcing services have not rich experience in Latvia. It started developing in the 1990s, but accounting outsourcing services have different expertise and history in Europe and around the world. An accountant is not a regulated profession in Latvia; an accountant is able to practice without a mandatory accountancy qualification, and it is enough for him/her to have only an economic-related academic or professional certificate, diploma or degree or experience or an accountant leading to a certificate of competency. This research aims to identify main future challenges for outsourcing accounting companies and accountants. The article looks at both theory and practice and attempts to determine and understand problematic issues about the advantages and disadvantages of outsourcing accounting leading to recommendations for improvement. The rapid development of cloud accounting has played an essential role in the development of outsourcing accounting these days. The author found that only in Norway there are specific rules for outsourcing accountants or external accountants. Main advantages of cloud accounting are possibilities of remote work and a universal system for accountants and managers. The author defined three significant questions for the Accounting Outsourcing Survey in Latvia, Lithuania, and Estonia.