Research Objective: This study explores the relationship between outsourcing accounting tasks and the financial performance of Small and Medium-Sized Enterprises (SMEs) in Delta State, Nigeria.
Methodology: A survey research design was adopted, with data collected from 227 SMEs out of 525 through the distribution of 500 questionnaires. A total of 202 valid responses were obtained. The reliability of the data was tested using Cronbach's Alpha, and multiple regression analysis was conducted using the Ordinary Least Square (OLS) method with SPSS version 23 to test the hypotheses.
Findings: The results revealed that outsourcing tax accounting services and financial statement preparation has a significant positive relationship with profit after tax (PAT) for SMEs in Delta State. However, outsourcing forensic accounting, bookkeeping services, and costing and management decision-making services showed no significant relationship with PAT.
Conclusion: Outsourcing specific accounting tasks, such as tax accounting and financial statement preparation, positively impacts the profitability of SMEs in Delta State, while other accounting functions may not directly affect financial performance.
Recommendations: SMEs should encourage employees to learn and perform outsourced functions from their external partners to enhance their overall profitability and efficiency.
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