Research On Risk Analysis And Evaluation Of Enterprise Financial Accounting Outsourcing

With the aggravating gradually competition of global market, the business environment of enterprises is changing continuously, enterprises are forced to focus on their specialized business, optimize the resources and outsource the business which is not good at, so as to improve the core competitiveness. As a supporting part of enterprise, financial accounting function has been gradually adopted to outsource by many enterprises. Financial Accounting Outsourcing (FAO) is an important strategic choice which can reduce the operating costs, relieve enterprises from daily complex process of financial work, and also allow the enterprises'financial reporting to enhance transparency and full disclosure.By adopting FAO, enterprises can achieve many advantages, at the same time, FAO bring out o lot of risks. IF these risks are not identified and analyzed, the outsourcing will not be successful. Thus, enterprises should identify and evaluate the risks before outsourcing financial accounting process.The paper is made up of the following five parts:The first chapter is the introduction which introduced the background note and summarized the current research on FAO and outsourcing risks, presented the literature of this paper framework and research methods. The second chapter is theoretical basis of FAO and outsourcing risks. It first summarized the definition, content and causes of FAO, and gave an introduction of relevant theories, and then introduced the development and status of FAO in home and abroad, and analyzed the mechanism of FAO risks based on the transaction-cost theory and the principal-agent theory. The third chapter is the analysis of FAO risks. The paper in this chapter specifically analyzed four aspects of FAO risks, which include the external environment, outsourcing enterprise and outsourcing service provider, as well as the outsourcing contract. The fourth chapter is evaluation of FAO risks and outsourcing risks prevention. On basis of the discussion in above chapter, the part suggested the evaluation model to evaluate the FAO risks by applying fuzzy comprehensive evaluation. Then it tested the model with a case. The fifth chapter is conclusions and outlook which made a summary for this study and proposed future research of the area.The innovation and features of this paper are:The paper originated four aspects of FAO risks, including the external environment, outsourcing enterprise and outsourcing service provider, as well as the outsourcing contract, and adopted fuzzy comprehensive evaluation, to study the risks of FAO, and then conducted a case study on the valuation model of FAO. So it will help the enterprises to have a more comprehensive understanding of FAO and risks, and play a directive role for managers to carry out financial accounting outsourcing strategy successfully.