If you are wondering if you should outsource business accounting services or consult with a local chartered accounting firm, you are not alone. For many North American companies, outsourcing is the primary means for achieving operational excellence. Large and small businesses alike now outsource their services to India, China, and other low-wage countries in order to cut costs.

But is it a good idea for Canadian companies to outsource their business accounting services? Off-shoring owes its appeal to lower labor costs and telecommunications infrastructure. Time zone differences also benefit companies because overnight work can be ready for a morning review.

Despite the advantages, however, there are problems with outsourcing Canadian accounting jobs to overseas providers. Businesses weighing the options between accounting services in Toronto or Mississauga should give serious consideration to the disadvantages of offshore outsourcing.

First, business outsourcing must address the language barrier. Different languages can make it difficult to communicate effectively. Simple misunderstandings can result in not-so-simple problems and even disaster for a Canadian business.

Along with the language barrier, face-to-face communication is missing in outsourcing situations. While many businesses have effective telecommunication infrastructure in place, email and phone calls cannot readily address complex issues. Business accounting services often require in-person discussions with business owners and supervisors, which outsourcing cannot provide.

In addition, offshore providers are not always available during regular business hours. On local accounting firms in Mississauga and Toronto providers, are just a short drive from the office or company headquarters.
Outsourcing is also a labor-intensive prospect for businesses. Local staff must manually prepare financial and accounting documents for delivery to the offshore provider. Sorting, faxing, and scanning statements, invoices, and receipts only add to business costs, in both time and money.

Security is another valid concern when companies consider outsourcing their services. In this digital age, proprietary information can be stolen during Internet transmission and through other electronic channels. In most cases, offshore accounting services also require remote access to a company's computer server, which poses another security risk.

Local providers in Toronto, Mississauga, and other nearby offices often require no remote access at all. Local accounting service providers can work directly in a company's building, if necessary, to protect sensitive information.

Finally, and most importantly, offshore accounting service providers are not accountants. While transactions are usually fast and relatively efficient, offshore companies cannot interpret financial information. Only an experienced Charter Accountant can analyze information and offer advice.

When shopping the market place, Canadians are fortunate to have many professional local accounting firms specializing in the needs of individuals, entrepreneurs, small businesses, large corporations, and more. Canadians have expert chartered and certified accountants offering the full gamut of accounting services including tax return preparation, tax planning and advice, financial statements, bookkeeping services, investments, and business consulting. Local providers also offer specialty services that include estate planning, tax audits, business sales, financial projections, new business planning, accounting software, and more.

So should you outsource or not? Well, in the end, you get what you pay for. If you don't need the unique values that only local professional services can provide, then it could be a good choice for you, for others the added values such as convenience, reliability, security and expert guidance that is gained by sourcing a local expert is well worth it every penny!