Outsourcing of Accounting Services and Financial Reporting Quality of Small and Micro Enterprises in Kenya; A Study of Small and Micro Enterprises in Nairobi, Kenya
DOI:
https://doi.org/10.47941/ijf.3181Keywords:
Accounting, Auditing, Size Distribution of FirmsAbstract
Purpose: The general objective of the study was to determine the effect outsourcing accounting services on financial reporting quality of small and micro enterprises in Nairobi, Kenya.
Methodology: This research adopted descriptive research design and targeted Small Medium Enterprises in Nairobi city county, Kenya. The study sample size was determined by using Taro Yamane’s proportional sampling technique formula, which was drawn randomly from Small and Micro Enterprises in Nairobi, Kenya. Primary data was collected by means of self-administered questionnaires. Data collected from the field was coded, cleaned, tabulated and analyzed using both descriptive and inferential statistics with the aid of specialized SPSS software. The output of analysis was presented using tables to make them reader friendly. Descriptive statistics such as frequencies and percentages as well as measures of central tendency (means) and dispersion (standard deviation) was used. Data was organized into graphs and tables for easy reference.
Findings: The results of the study found the outsourcing of the accounting services influenced financial reporting quality. In terms of the impact of influence; auditing services was first, followed by information technology services, tax reporting services and lastly book keeping services.
Unique Contribution to Theory Practice and Policy: The study recommends the small and micro enterprises to embrace outsourcing of accounting services for improving of financial reporting quality.
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Copyright (c) 2025 Susan Gathoni Goro, Dr. John Murunga Kadima
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