Small business owners often assume they need a local accountant to manage their finances. Today many businesses choose virtual accountants instead. This page compares local and virtual accountants, explains the real differences in cost access and service quality, and helps you decide which option fits your business best.
What Is a Local Accountant
A local accountant is a professional who operates in your city or region and typically works with clients in person.
Local accountants often provide
In person meetings- Tax preparation or advisory services
- Periodic financial reviews
- Local business familiarity
Many local accountants focus primarily on tax season rather than ongoing financial management.
What Is a Virtual Accountant
A virtual accountant provides accounting services remotely using cloud based systems and secure portals.
Virtual accountants typically offer
- Remote access via email phone and video
- Cloud based accounting tools
- Ongoing financial review and oversight
- Collaboration with bookkeepers and CPAs
Virtual accounting allows businesses to access broader expertise without geographic limits.
Key Differences Between Local and Virtual Accountants
Local accountants
- In person availability
- Limited by location
- Often tax focused
- Higher hourly or seasonal pricing
Virtual accountants
- Work remotely nationwide
- Use standardized systems and tools
- Offer year round support
- Often lower and more predictable costs
The biggest difference is not proximity but consistency and accessibility.
Cost Comparison Local vs Virtual Accountant
Local accountants often charge
- Hourly rates
- Seasonal tax preparation fees
- Additional charges for follow ups
Virtual accountant support is usually
- Monthly or flat rate
- Scalable based on business needs
- Less expensive than in house or local hires
Most small businesses find virtual accounting more cost effective.
When a Local Accountant Makes Sense
A local accountant may be a good fit if
- You prefer face to face meetings
- Your needs are limited to annual tax filing
- You operate in a highly regulated local niche
For many businesses these situations are the exception rather than the rule.
When a Virtual Accountant Is the Better Choice
- You want year round financial oversight
- Your books are managed in QuickBooks or Xero
- You need flexible scalable support
- You want access to specialized expertise
A virtual accountant is often better if
Most modern small businesses benefit from virtual accounting paired with strong bookkeeping.
Common Misconceptions About Virtual Accountants
- Virtual accountants are less qualified
- Local accountants understand your business better
- Remote work is less secure
In reality virtual accountants often use more secure systems standardized workflows and specialized teams.
How Virtual Accountants Work With Bookkeepers
A common structure is
- Bookkeepers manage daily transactions
- Virtual accountants review and validate monthly
- CPAs handle tax filing and planning
This layered approach provides better results than relying on a single local contact.
Which Option Is Right for Your Business
Choose a local accountant if you only need occasional in person help. Choose a virtual accountant if you want ongoing clarity oversight and predictable pricing. Most small businesses today choose virtual accounting supported by professional bookkeeping.
Not sure whether a local or virtual accountant is right for you.
Request a free bookkeeping review and get guidance based on your business size growth stage and reporting needs.