Outsourcing is a highly effective strategy, widely used in various types of business to gain a competitive edge. The tremendous growth of outsourcing first started in the manufacturing and information technology industries. It has also spread into the accounting industry as well. However, in accounting the major problems and benefits caused by outsourcing are different from those identified in the manufacturing and IT industries. This leads to the question of whether or not outsourcing in accounting would create more advantages than disadvantages. This paper analyzes the question through four steps: (1) how accounting outsourcing is done, (2) which accounting tasks (both private and public) are fit for outsourcing, (3) what are the benefits and challenges of accounting outsourcing, and (4) what are the effects that outsourcing, including accounting outsourcing, have on the U.S economy. The author argues that accounting outsourcing generates more risks and harmful effects than benefits for companies and their stakeholders. Therefore, accounting outsourcing should be discouraged. This research provides a comprehensive view on the topic of outsourcing in accounting, including rewards and problems caused by accounting outsourcing, effects of outsourcing on business stakeholders, effects of outsourcing on the U.S economy, and future outsourcing trends and regulations
