Accounting Services and Performance of Hotels in the Central Region of Ghana

Abstract

The present study examined perception of accounting services relevance, factors that influence accounting services outsourcing and the effect of outsourced accounting services on firm performance in the hospitality industry in the Central Region of Ghana. Two research questions and six hypotheses were developed to guide the study. It employed the quantitative method using a cross-sectional survey. One hundred and six (106) managers, owners, and supervisors who influence decision-making participated in the study. The study used structural equation modelling and descriptive statistics for analysis. The study pointed that the hospitality industry perceived accounting services as having positive outcomes on the operations of the industry. Several factors encouraged the industry to outsource various accounting services, which included service quality, cost implications, and asset specificity. However, resources and IFRS adoption surprisingly had negative effects on the accounting services outsourcing decision. Appreciating the inherent challenges of engaging in accounting services outsourcing, respondents agreed that inappropriate management of accounting services greatly affects the perceived benefits obtained from accounting services outsourcing. The study also found that accounting services outsourcing had a significant positive effect on firm performance. As a result, it is recommended that management of hospitality facilities should outsource more accounting services including non-traditional accounting services such as business advisory to enjoy the benefits of outsourcing accounting services even when traditional accounting tasks can be performed in-house. Continuous monitoring of outsourcing services must be made to reduce the effects of inherent outsourcing challenges.